Far too often across the Commonwealth, brokers are targeting cash-strapped homeowners – particularly older adults – offering a small up-front cash payment for the future right to sell the person’s home. The homeowners are encouraged to sign lengthy realty agreement contracts for a set period, which can be up to 40 years. Should the homeowner try to cancel the agreement or sell their home using another realtor, they are sued or face a cancellation fee of several thousand dollars.   
 
My legislation would provide consumer protection against unfair service agreements for homeowners, also known as Non-Title Recorded Agreements for Personal Services (NTRAPS), by establishing prohibitions and requirements for these agreements. Unlawful agreements that include certain forbidden contents would be deemed unenforceable and in violation of the Unfair Trade Practices and Consumer Protection Act.

These unfair service agreements can make it difficult for homeowners to refinance, access home equity, or transfer their property. Homeowners who try to list their property with a different agent may face penalties, such as paying the original company a commission. Prohibiting such agreements is essential to protect consumers from these predatory practices. AARP notes that multiple states have already enacted legislation to ban these agreements, recognizing the need to safeguard homeowners from those attempting to misappropriate their earned home equity.

I urge you to join me in supporting homeowners by co-sponsoring this legislation.