Another state legislature
According to the American Land Title Association, Virginia is the latest state to pass NTRAP legislation, joining 20 other states, some of which are awaiting the governor's signature. Virginia Governor Glenn Youngkin is expected to sign the bill.
The momentum behind the movement to pass legislation that would block agreements in which providers pay for the exclusive right to sell real estate in the future is significant for the industry. One reason for this is that the arrangement can impede or complicate mortgage financing.
“This practice preys on homeowners by gifting small amounts of cash in exchange for decades-long contracts,” said Elizabeth Blosser, ALTA's vice president of government affairs.
Virginia's new law makes NTRAP unenforceable. It also prohibits their recording on property records, imposes penalties and, if recorded, creates a route to remove them and pay related damages.
Sixteen states have enacted similar laws: Alabama, California, Colorado, Florida, Georgia, Idaho, Iowa, Maryland, Maine, Nevada, North Carolina, North Dakota, Ohio, Tennessee, Utah, and Washington, and their respective governors have enacted similar laws. is signed.
The legislatures of three other states (Indiana, Minnesota, and Oregon) have already passed legislation and are awaiting approval from their respective governors.
Additionally, the attorneys general of nine states (California, Florida, Georgia, Indiana, Massachusetts, New Jersey, Ohio, Pennsylvania, and North Carolina) have filed a lawsuit against MV Realty, the purported provider of the contract. filed a lawsuit.
MV Realty did not respond to a request for comment at the time of writing. The company filed for Chapter 11 bankruptcy last year, according to the Justice Department, and the Justice Department has defended the rights of policyholders in that context.
