This bill introduces new legal provisions to prohibit certain types of listing agreements in residential real estate transactions. Specifically, it defines "prohibited listing agreements" as contracts between a provider of real estate brokerage services and an owner of residential real estate that include terms such as binding future owners, allowing assignment of services without consent, creating liens, or obligating owners to pay fees for sales not resulting from the provider's services. The bill establishes that any such prohibited agreements are unenforceable and cannot be recorded, and it allows affected parties to seek court orders to declare these agreements void.

Additionally, the bill outlines the rights of recovery for parties with an interest in the residential real estate if a prohibited listing agreement is recorded. They may recover actual damages, costs, and attorney's fees from the party responsible for the recording. The act is set to take effect on January 1, 2026, and it is noted that while there may be indeterminable expenditures associated with the bill, there is no expected revenue impact. The bill aims to protect homeowners from unfair practices in real estate transactions.