House Bill 5185 and Senate Bill 133 were signed into law in Rhode Island, making NTRAPS unenforceable. NTRAPS impose long-term fees on homeowners without clear disclosure. The law prohibits recording such agreements and allows homeowners to remove them. Penalties will apply for attempts to record NTRAPS. Advocates stress the law protects property rights and prevents unreasonable transaction costs for homeowners, especially the elderly. This legislation continues AARP's advocacy work, marking Rhode Island as the 33rd state to target NTRAPS.
NTRAPS are agreements that can impose long-term fees or obligations on homeowners, often without clear disclosure or understanding, leading to financial burdens.
The new law makes NTRAPS legally unenforceable in Rhode Island, prohibits their recording, and allows homeowners to remove them and pursue damages.
Elizabeth Blosser emphasizes the importance of safeguarding property rights to prevent unreasonable restraints on homeowners' abilities to sell or refinance their homes.
Rhode Island is the 33rd state to legislate against NTRAPS, following a steady trend initiated by Utah in March 2023.
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