Bill > SB814

This bill, effective June 1, 2026, prohibits certain service agreements for residential property that were entered into before June 1, 2023, if the service provider is considered "defunct" and not in good standing with the State Department of Assessments and Taxation on or after June 1, 2026. A "service agreement" is defined as a contract where a service provider agrees to perform maintenance for owned residential property or assist with its purchase or sale. The bill specifically targets agreements with service providers who have forfeited their right to conduct business in the state and are no longer considered in good standing. For these specific agreements entered into before June 1, 2023, the bill limits their effectiveness to a maximum of two years and prevents them from binding future property owners, creating liens or encumbrances on the property, or allowing the service provider to transfer their rights without notice or consent. Any such agreement violating these provisions will be considered void and unenforceable, and individuals affected can sue to have the agreement declared void and potentially recover damages and legal costs.