Bill > H5185

This bill introduces a new chapter to state law aimed at protecting residential property owners from unfair service agreements. The bill defines a service agreement as a contract for services related to residential real estate maintenance or transactions, and establishes criteria for what makes such an agreement "unfair." Specifically, an agreement is considered unfair if it attempts to bind future property owners, allows service provider assignment without owner consent, or tries to create a lien or property security interest. The bill provides numerous exceptions, including home warranties, insurance contracts, utility services, and agreements related to common interest communities. If a service agreement is deemed unfair, it becomes unenforceable, and recording such an agreement is prohibited, with potential misdemeanor charges for those who do so. The bill also provides legal remedies for property owners, allowing them to seek court orders declaring such agreements unenforceable and potentially recover damages, costs, and attorneys' fees from the service provider. Additionally, the bill classifies unfair service agreements as deceptive trade practices, offering consumers further protection. The legislation is designed to prevent future property owners from being burdened by problematic service agreements and to keep public property records clear of such potentially harmful documents.

Justice

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