This bill aims to prohibit the use and recording of certain service agreements related to residential real estate that are deemed unlawful. Specifically, it makes it illegal for any service agreement to be valid if any part of the service is not to be performed within one year of the agreement's execution, and if the agreement either runs with the land, allows for assignment without the owner's consent, or creates a lien or encumbrance on the property. The bill also establishes that recording such unlawful agreements will be classified as a crime of the fourth degree, and county recording officers are empowered to refuse to accept these agreements for recordation. Furthermore, if an unlawful service agreement is recorded, it will not provide notice to bona fide purchasers or creditors.

Additionally, the bill outlines remedies for individuals with an interest in the affected real property, allowing them to file complaints to declare the agreements unenforceable and to recover damages, costs, and attorney fees from the service provider. Several exemptions are included in the bill, such as home warranties, insurance contracts, and agreements related to common interest communities, ensuring that legitimate agreements are not impacted by this legislation. The intent of the bill is to protect current and future owners of residential real estate from burdensome and deceptive service agreements while maintaining the integrity of public land records.