The bill enacted as R.S. 51:1429 addresses unfair and deceptive trade practices specifically related to real estate service agreements for residential properties. It prohibits individuals from securing obligations in these agreements through security interests, liens, or mortgages against residential immovable property, and also prohibits the recording of such agreements in mortgage or conveyance records. Violations of these provisions are classified as deceptive and unfair trade practices, subjecting violators to penalties outlined in the relevant chapter of Louisiana law. Additionally, any obligations arising from these agreements will not constitute real rights and will be deemed ineffective against third parties, regardless of whether the agreement is recorded.

The bill also establishes that any mortgage intended to secure obligations from a real estate service agreement is null and void. It allows interested parties to petition the court to cancel any security interests or remove related documents from public records. Importantly, the bill clarifies that it does not authorize real estate brokers or salespersons to record liens against residential properties for commission payments. Exceptions to the bill include liens for commercial real estate commissions, options to purchase, and agreements for managing residential real estate. The act will take effect upon the governor's signature or after the designated period for bills to become law without a signature.