Bill > S06361

This bill introduces the "Prohibition of Unfair Real Estate Service Agreements Act" to protect consumers from potentially exploitative service agreements related to residential real estate. The legislation defines an "unfair real estate service agreement" as a contract for services not to be performed within two years that either attempts to bind future property owners, allows service provider assignment without owner consent, creates improper liens or encumbrances, or is a real estate listing agreement. The bill prohibits the enforcement and recording of such agreements, with specific exceptions for legitimate contracts like home warranties, insurance, utility services, and homeowners' association agreements. If an unfair agreement is recorded, property owners can seek a court order declaring it unenforceable. The Attorney General is empowered to investigate potential violations, initially sending a cease and desist letter and potentially pursuing legal action that could result in injunctions and civil penalties up to $1,000 per violation. The law aims to prevent fraud, protect property owners from unexpected or binding service agreements, and ensure transparency in real estate transactions by preventing the recording of potentially deceptive contracts that could cloud property records.

Business and Industry, Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/S6361