"This decision is a major win for North Carolina homeowners and a clear message that deceptive agreements undermining property rights will not be tolerated, said Caroline Cone, ALTA director of state government affairs. Homeowners should never face hidden or unreasonable restraints on their ability to sell, refinance or pass on their property due to misleading contracts that cloud title and threaten financial security."
"MV Realty's agreements known as non-title recorded agreements for personal services (NTRAPS) were filed in property records and locked homeowners into exclusive listing contracts for up to 40 years in exchange for modest upfront payments. Contracts required homeowners to pay commissions even if their property was sold without the company's involvement. Critics say the agreements created impediments and increased the cost and complexity of selling, refinancing or transferring real estate while misleading homeowners, lenders and future buyers."
The ruling prevents deceptive non-title recorded agreements from undermining homeowners' property rights and from imposing hidden restraints on selling, refinancing, or transferring homes. MV Realty used non-title recorded agreements for personal services (NTRAPS) filed in property records to lock homeowners into exclusive listing contracts for up to 40 years in exchange for modest upfront payments. Those contracts required commission payments even when sales occurred without the company's involvement, creating impediments, increasing cost and complexity of real estate transactions, and clouding title. North Carolina banned NTRAPS in 2023, and 33 states have enacted similar legislation. Stakeholders coordinated responses to protect the certainty of homeownership.
Read at www.housingwire.com
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