NH subcommittee debates banning "future right to listing" agreements that can create property liens

A New Hampshire legislative subcommittee on Commerce and Consumer Affairs spent extended time discussing proposed changes to state law aimed at preventing companies from using long-term listing or “service” agreements that can be recorded as liens against residential property.

The discussion focused on two related goals: (1) make these agreements unenforceable or illegal when they effectively grant a future right to list a property and (2) prohibit recording a lien or other encumbrance based on such an agreement. Mike Padmore, director of advocacy for AARP New Hampshire, told the committee the group wants the statute to make clear these contracts are unenforceable and recommended using the term “future right to listing agreement.” Padmore said, "future right to listing agreement means a contract under which a person agrees to provide future right to listing services in relation to any residential real estate."

Padmore and other advocates proposed a two‑year rule in the draft: a characteristic of an unfair agreement would be that any part of the promised service is not performed within two years of the contract. Padmore said the two‑year limit reflects common practice —…