Bill > A05886

This bill introduces the "Prohibition of Unfair Real Estate Service Agreements Act" to protect consumers from potentially abusive service agreements related to residential real estate. The legislation defines an "unfair real estate service agreement" as any written contract for services related to residential property that: is not to be performed within two years, purports to run with the land or bind future property owners, allows service provider assignment without owner consent, attempts to create unauthorized liens or encumbrances, or is a real estate listing agreement. The bill prohibits the enforcement and recording of such agreements, providing consumers with legal recourse if an unfair agreement is recorded. If a service provider enters into an unfair agreement, they can be considered in violation of deceptive practices laws. The Attorney General is empowered to issue cease and desist letters and pursue injunctions against violators, with potential civil penalties up to $1,000 per violation. Importantly, the bill includes exceptions for legitimate agreements like home warranties, insurance contracts, utility service agreements, and certain community association documents. The law will take effect 90 days after becoming law, aiming to protect residential property owners from potentially exploitative service contracts that could inappropriately encumber their property rights.

Business and Industry, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A5886