New Hampshire the latest state to ban right-to-list agreements 

This week, the state of New Hampshire joined more than 30 other states in banning right-to-list agreements, also known as non-title recorded agreements for personal service (NTRAPS). 

These contracts are typically presented by a brokerage or other company that pays an upfront fee in exchange for the exclusive right to sell a homeowner's property in the future — in many cases, maintaining these rights for decades. 

The practice is seen as predatory by many in the real estate industry as well as the numerous state legislators who have voted to end them.

What New Hampshire's bill says: The new law — which was signed by Governor Kelly Ayotte on July 15 along with 100 other bills — prohibits "unfair service agreements in residential real estate transactions," including NTRAPS or other arrangements that would be considered unethical or predatory. A contract is seen as "unfair" if those entering into a service agreement do not complete their service within a year. 

Additionally, an "unfair" agreement, according to New Hampshire's law, is one that "purports to run with the land or to be binding on future owners of interests in the real property" or one that leads to "a lien, encumbrance, or other real property security interest." 

Preventing companies from shackling homeowners: The new law would stop companies like MV Realty, which is facing lawsuits in many states, from altering a property owner's title or clouding property recordings in ways that constrain a homeowner's ability to list and sell their home.

MV Realty's 40-year agreement allowed the company to place a lien on a property based on a percentage of the home's value — which MV Realty had the discretion to determine — if the owner (or their heirs) opted to terminate the agreement early.

Bill proponents celebrate passage: The American Land Title Association (ALTA) and AARP have been leading advocates for the passage of laws across the country that ban NTRAPS. This week, the organizations applauded New Hampshire for joining 32 other states in passing the law. 

"It is essential to ensure there are no unreasonable restraints on a homeowner's ability to sell or refinance their home in the future due to unwarranted transaction costs," ALTA's chief of strategy, communications and innovation Elizabeth Blosser said in a press announcement. A representative for AARP described the new law as "a critical step forward in protecting New Hampshire homeowners — especially older adults — from deceptive and predatory real estate practices."

ALTA and AARP also recently praised the passage of a similar law in nearby Rhode Island, whose governor signed a bill outlawing NTRAPS almost exactly a month prior. Blosser described the passage of the Rhode Island law in June as "a monumental win for safeguarding people's property rights." 

Outlawing MV Realty's business model: One of the most visible players in the controversial right-to-list business has been MV Realty, which is currently in bankruptcy court. While the company has argued that its business model is "innovative," several attorneys general considered it to be predatory. 

MV Realty has been sued by at least 11 states and has had its license revoked in some, including Colorado and Florida, where the brokerage had offered homeowners up to $5,000 in exchange for giving the company exclusive rights to sell their home over the next 40 years. The company began releasing homeowners from those agreements in June.