#United States #New Hampshire #NTRAPS #Land Title Insurance #Homebuyer Rights

New Hampshire's New Homebuyer Protection Law

In a significant step towards consumer protection, New Hampshire has recently enacted Senate Bill 164, aimed at safeguarding homeowners from the predatory practices associated with Non-Title Recorded Agreements for Personal Services (NTRAPS). These agreements often create unfair financial burdens, limiting the homeowner's ability to sell or refinance their property easily. The American Land Title Association (ALTA), in conjunction with AARP and the New England Land Title Association (NELTA), has praised this legislative move as a critical advancement for property rights.

What the New Law Entails

The new legislation has several key provisions:
1. Making NTRAPS Unenforceable: Any existing agreements under this category can no longer be legally upheld in New Hampshire.
2. Prohibiting Recording of NTRAPS: The act restricts the recording of these agreements, ensuring they do not appear in property records.
3. Establishing Penalties: There will be consequences for any violations pertaining to the recording of NTRAPS.
4. Removal and Damage Recovery: Homeowners can seek the removal of invalid entries from property records and may recover damages incurred due to these agreements.

Elizabeth Blosser, chief of strategy for ALTA, emphasized the significance of this bill: "The property rights of American homeowners must be safeguarded. It's vital to eliminate any unreasonable constraints on a homeowner’s future transactions, whether they entail selling or refinancing."

Collaborative Efforts and Future Implications

The successful passage of SB 164 is a result of concerted advocacy efforts by AARP and ALTA, both focused on eradicating harmful practices that jeopardize homeowner interests. AARP’s Government Affairs Director, Samar Jha, affirmed this law as part of a broader strategy to promote legislative reforms aimed at protecting vulnerable homeowners.

The implications of SB 164 extend beyond New Hampshire, showcasing a model that could potentially inspire similar legislation in other states struggling with predatory real estate practices.

Protecting Vulnerable Homeowners

The push against NTRAPS is especially crucial for older adults and those with limited financial literacy, who may not fully understand the repercussions of signing such agreements. Christina FitzPatrick, AARP's New Hampshire state director, remarked, "This legislation is critical for protecting Granite Staters, particularly older residents, from deceptive practices that compromise control over their most significant asset— their homes."

The law's enactment highlights an ongoing trend across the United States, where a growing number of states have adopted regulations to mitigate the risks associated with NTRAPS. As of today, a total of 33 states have passed similar legislation.

Conclusion

Governor Kelly Ayotte, who signed this pivotal legislation on July 15, 2025, recognizes the importance of protecting homeowner rights. By eliminating unfair practices and encouraging transparency in real estate transactions, New Hampshire sets a precedent that supports and empowers homeowners across the nation. This proactive legislation not only bolsters property rights but also provides a framework that could inspire future enhancements in consumer protection across various sectors of real estate.