1 STATE OF OKLAHOMA
1
2 2nd Session of the 59th Legislature (2024)
2
3 SENATE BILL 1763 By: Coleman
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to unfair service agreements;
7 defining terms; providing conditions for an unfair
8 service agreement; prohibiting certain provisions
8 from being considered an unfair service agreement;
9 exempting certain agreements; providing for
9 violation; prohibiting recording of agreements;
10 providing for rights of recovery; providing for
10 codification; and providing an effective date.
11
11
12
12
13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
13
14 SECTION 1. NEW LAW A new section of law to be codified
14
15 in the Oklahoma Statutes as Section 779 of Title 15, unless there is
15
16 created a duplication in numbering, reads as follows:
16
17 As used in this act:
17
18 1. “Person” means a natural person, partnership, association,
18
19 cooperative, corporation, trust, or other legal entity;
19
20 2. “Recording” means presenting a document to a county clerk in
20
21 this state for official placement in the public land records;
21
22 3. “Residential real estate” means real property located in
22
23 this state that is used primarily for personal, family, or household
23
24 purposes and is improved by one to four dwelling units;
24
Req. No. 3233 Page 1
 1 4. “Service agreement” means a contract under which a person
1
2 agrees to provide services in connection with the maintenance of or
2
3 purpose or sale of residential real estate; and
3
4 5. “Service provider” means an individual or entity that
4
5 provides services to a person.
5
6 SECTION 2. NEW LAW A new section of law to be codified
6
7 in the Oklahoma Statutes as Section 779.1 of Title 15, unless there
7
8 is created a duplication in numbering, reads as follows:
8
9 A. A service agreement shall be considered unfair under this
9
10 act if any part of the service subject to the agreement shall not be
10
11 performed within one (1) year after the time it is entered into and
11
12 has any of the following:
12
13 1. The service agreement purports to run with the land or be
13
14 binding on the future owner of interest in the real property;
14
15 2. The service agreement allows for assignment of the right to
15
16 provide service without notice to and consent of the owner of
16
17 residential real estate; or
17
18 3. The service agreement purports to create a lien,
18
19 encumbrance, or other real property security interest.
19
20 B. This act shall not apply to:
20
21 1. A home warranty or similar product that covers the cost of
21
22 maintenance of a major home system for a fixed period;
22
23 2. An insurance contract;
23
24
24
Req. No. 3233 Page 2
 1 3. An option or right of refusal to purchase the residential
1
2 real estate;
2
3 4. A declaration created in the formation of a common interest
3
4 community or an amendment thereto;
4
5 5. A maintenance or repair agreement entered by a homeowners’
5
6 association in a common interest community;
6
7 6. A mortgage loan or a commitment to make or receive a
7
8 mortgage loan;
8
9 7. A security agreement under the Uniform Commercial Code
9
10 relating to the sale or rental of personal property or fixtures; or
10
11 8. Water, sewer, electrical, telephone, cable, or other
11
12 regulated utility service providers.
12
13 C. This statute does not impair the rights granted by the
13
14 provisions of Section 141 et seq. of Title 42 of the Oklahoma
14
15 Statutes.
15
16 D. If a service agreement is deemed unfair pursuant to
16
17 subsection A of this section, the service agreement shall be:
17
18 1. Unenforceable; and
18
19 2. Considered an unfair or deceptive trade practice as defined
19
20 in Section 752 of Title 15 of the Oklahoma Statutes.
20
21 SECTION 3. NEW LAW A new section of law to be codified
21
22 in the Oklahoma Statutes as Section 779.2 of Title 15, unless there
22
23 is created a duplication in numbering, reads as follows:
23
24
24
Req. No. 3233 Page 3
 1 A. No person shall record or cause to be recorded an unfair
1
2 service agreement or notice or memorandum thereof in this state.
2
3 B. If an unfair service agreement is recorded in this state,
3
4 the agreement shall not provide actual or constructive notice
4
5 against an otherwise reputable purchaser or creditor.
5
6 C. If an unfair service agreement or a notice or memorandum
6
7 thereof is recorded in this state, any person with an interest in
7
8 the real property that is the subject of that agreement may apply to
8
9 a district county where the recording exists to record a court order
9
10 declaring the agreement unenforceable.
10
11 D. If an unfair service agreement or a notice or memorandum
11
12 thereof is recorded in this state, any person with an interest in
12
13 the real property that is the subject of that agreement may record
13
14 such actual damages, costs, and attorney fees as may be proven
14
15 against the service provider who recorded the agreement.
15
16 SECTION 4. This act shall become effective November 1, 2024.
16
17
17
18 59-2-3233 MR 1/17/2024 11:08:25 AM
18
19
19
20
20
21
21
22
22
23
23
24
24
Req. No. 3233 Page 4