{"id":4062,"date":"2023-03-03T20:42:53","date_gmt":"2023-03-03T20:42:53","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2023\/03\/03\/utah-becomes-first-state-to-ban-right-to-list-agreements\/"},"modified":"2025-03-13T02:49:37","modified_gmt":"2025-03-13T02:49:37","slug":"utah-becomes-first-state-to-ban-right-to-list-agreements","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2023\/03\/03\/utah-becomes-first-state-to-ban-right-to-list-agreements\/","title":{"rendered":"Utah becomes first state to ban right to list agreements"},"content":{"rendered":"\n

The state of Utah has taken action against firms who employ right to list agreements<\/a> as part of their business models, but unlike Florida,<\/a> Massachusetts, Pennsylvania<\/a>, and Ohio<\/a>, this isn\u2019t just a lawsuit.<\/p>\n\n\n\n

On Thursday, state legislators in Utah passed H.B. 211<\/a>, which bans right to list agreements, like those used by MV Realty<\/strong>, SellWhenever<\/strong> and HomeOptions<\/strong>. The bill was sponsored by State Representative Calvin R. Musselman, a republican representing the 9th district. <\/p>\n\n\n\n

According to the law, after May 3, 2023, real estate service providers \u201cmay not allow the services to be provided under the agreement to begin more than one year after the day on which the residential property service agreement is signed by all parties\u201d and the agreements may not be binding \u201con a future owner of an interest in the residential real estate,\u201d create \u201ca lien encumbrance, or other real property security interest or allow for the assignment of the right to provide the services without notice to and agreement by the owner of the residential real estate that is the subject\u201d of the agreement.<\/p>\n\n\n\n

In addition, the law makes right to list agreements unenforceable by law, restricts and prohibits the recording of these agreements in property record, creates penalties if agreements of this nature are recorded in property records and provides for the removal of existing agreements from property record and recovery of damages.<\/p>\n\n\n\n

According to the American Land Title Association<\/strong> (ALTA), the bill follows a model bill the trade group helped draft with the input of national stakeholders.<\/p>\n\n\n\n

\u201cToday, the Utah legislature has affirmed that they are committed to protecting homeowners and their largest financial investment,\u201d Diane Tomb<\/a>, the CEO of ALTA<\/a> said in a statement posted on the trade group\u2019s website<\/a>. \u201cNTRAPS [Non-Title Record Agreements for Personal Service] is a deceitful, predatory practice, and homeowners in Utah can now breathe a sigh of relief that real estate brokerage firms can no longer continue these schemes, which impact homeowners\u2019 future ability to sell or refinance property.\u201d <\/p>\n\n\n\n

Steve Murray<\/a>, the co-founder of RealTrends Consulting<\/strong>, shares a different view.<\/p>\n\n\n\n

\u201cMy thought is, does the Utah state legislature think that their citizens are stupid?\u201d Murray posited. \u201cDo they think their citizens don\u2019t understand when they sign the agreement that they are getting money today in exchange for a future promise to the source of that money? I know the argument is that it is to protect consumers, but do they think they can\u2019t figure this out?\u201d<\/p>\n\n\n\n

In Murray\u2019s view, the cash payments these firms use to ensure future business are comparable to the hundreds or even thousands of dollars a real estate agent might spend on potential or past clients they are hoping to work with again in the future or receive referrals from.<\/p>\n\n\n\n

Despite his misgivings about the Utah law, Murray does understand why legislators feel the need for regulation on this.<\/p>\n\n\n\n

\u201cWhat if someone signs and agreement and decides to sell, but the service provider isn\u2019t putting the property on the MLS or holding open houses or marketing the home, but the owner had to use that firm because they were under an agreement?\u201d Murray asked. \u201cI can see the problems, but rather than just ban them all together, why don\u2019t they just better regulate these practices?\u201d<\/p>\n\n\n\n

Ken Trepeta, the executive director of the Real Estate Services Providers Council<\/strong>, did not share Murray\u2019s disdain for the Utah law, but he was not surprised a state had taken action in this way.<\/p>\n\n\n\n

\u201cIt is not clear whether right to list agreements run afoul of any current laws or rule so it is not surprising a legislature is not leaving the matter to chance and taking action to address the long term consumer protection concerns raised by these agreements,\u201d Trepeta wrote in an email. \u201cI wouldn\u2019t be surprised if other states followed suit.\u201d<\/p>\n\n\n\n

And Trepeta is right. Similar bills have been introduced in California, Colorado, Florida, Georgia, Iowa, Idaho, North Dakota, Tennessee and Washington. In addition, ALTA said it expects bills addressing right to list agreements in five more states later this year.<\/p>\n\n\n\n

Earlier this week, MV Realty, which faces lawsuits<\/a> from four states attorneys general alleging that it misleads and confuses homeowners through its Homeowner Benefit Program<\/a>, announced that it was pausing the signing of new Homeowner Benefit Agreements.<\/a><\/p>\n\n\n\n

\u201cMV Realty has voluntarily temporarily suspended entering into new customers contracts as we work to address the concerns raised by regulators and legislators,\u201d a company spokesperson wrote in an email.<\/p>\n\n\n\n

Requests for comment sent to SellWhenever and HomeOptions were not returned by the time of publication.<\/p>\n","protected":false},"excerpt":{"rendered":"

Utah state legislators banned right to list agreements this week, taking aim at firms like MV Realty, SellWhenever and HomeOptions.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-4062","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nUtah becomes first state to ban right to list agreements - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"Utah state legislators banned right to list agreements this week, taking aim at firms like MV Realty, SellWhenever and HomeOptions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/preprod.realtrends.com\/blog\/2023\/03\/03\/utah-becomes-first-state-to-ban-right-to-list-agreements\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Utah becomes first state to ban right to list agreements\" \/>\n<meta property=\"og:description\" content=\"Utah state legislators banned right to list agreements this week, taking aim at firms like MV Realty, SellWhenever and HomeOptions.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preprod.realtrends.com\/blog\/2023\/03\/03\/utah-becomes-first-state-to-ban-right-to-list-agreements\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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