Bill > S0133

This bill establishes new legal protections for residential property owners by prohibiting unfair service agreements that could potentially harm current or future property owners. The bill defines a "service agreement" as a contract for services related to residential real estate maintenance or transactions, and sets specific criteria for determining when such an agreement is considered unfair. Unfair service agreements include those that claim to be binding on future property owners, allow service providers to assign rights without owner consent, or attempt to create liens or encumbrances on the property. The bill explicitly exempts certain types of agreements like home warranties, insurance contracts, utility services, and homeowners' association agreements. If a service agreement is deemed unfair, it becomes unenforceable, and recording such an agreement is prohibited—in fact, doing so is considered a misdemeanor. Property owners who are negatively impacted by an unfair service agreement can seek legal remedies, including recovering damages, court costs, and attorney fees. The bill also allows property owners to seek a court order declaring an unfair service agreement unenforceable if it has been recorded. Ultimately, the legislation aims to protect residential property owners from potentially predatory or overly restrictive service agreements that could complicate property ownership or transfer.

Justice

https://status.rilegislature.gov/