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 or assist with the purchase or sale of residential property. The bill specifically states that such agreements, if they violate certain provisions, will be considered void and unenforceable, meaning they will have no legal effect. These prohibited provisions include agreements that are effective for more than two years, attempt to bind future property owners, create a lien or encumbrance on the property, or allow the service provider to transfer their rights without notice or consent. If such a voided agreement is recorded, individuals with an interest in the property can sue the service provider to have the agreement declared invalid and may seek compensation for damages and legal costs.