1 STATE OF OKLAHOMA
1
2 2nd Session of the 59th Legislature (2024)
2
3 HOUSE BILL 3318 By: Bashore
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to service agreements; enacting the
7 Prohibition of Unfair Service Agreements Act;
8 defining terms; providing for when a service
8 agreement is unfair; providing for when act does not
9 apply; providing this act does not impair any lien
9 right granted pursuant to Oklahoma law; providing
10 that unfair service agreements are unenforceable;
10 prohibiting the recording of an unfair service
11 agreement or notice or memorandum; prohibiting county
11 clerk from accepting and recording an unfair service
12 agreement; providing that a county clerk shall incur
12 no liability for recording an unfair service
13 agreement; providing that if an unfair service
13 agreement is recorded it shall not provide actual or
14 constructive notice; providing method for obtaining a
14 court order declaring an unfair service agreement
15 unenforceable; providing for damages; providing for
15 codification; and providing an effective date.
16
16
17
17
18
18
19 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
19
20 SECTION 1. NEW LAW A new section of law to be codified
20
21 in the Oklahoma Statutes as Section 301 of Title 16, unless there is
21
22 created a duplication in numbering, reads as follows:
22
23 This act shall be known and may be cited as the "Prohibition of
23
24 Unfair Service Agreements Act".
24
Req. No. 9539 Page 1
 1 SECTION 2. NEW LAW A new section of law to be codified
1
2 in the Oklahoma Statutes as Section 302 of Title 16, unless there is
2
3 created a duplication in numbering, reads as follows:
3
4 As used in this act:
4
5 1. "Person" means a natural person, partnership, association,
5
6 cooperative, corporation, trust, or other legal entity.
6
7 2. "Recording" means presenting a document to the county
7
8 clerk's office for official placement in the public land records.
8
9 3. "Residential real estate" means real property located in
9
10 this state which is used primarily for personal, family, or
10
11 household purposes and is improved by one to four dwelling units.
11
12 4. "Service agreement" means a contract under which a person
12
13 agrees to provide services in connection with the maintenance of or
13
14 purchase or sale of residential real estate.
14
15 5. "Service provider" means an individual or entity that
15
16 provides services to a person.
16
17 SECTION 3. NEW LAW A new section of law to be codified
17
18 in the Oklahoma Statutes as Section 303 of Title 16, unless there is
18
19 created a duplication in numbering, reads as follows:
19
20 A. A service agreement is unfair under this act if any part of
20
21 the service subject to the agreement is not to be performed within
21
22 one (1) year after the time it is entered into and has any of the
22
23 following characteristics:
23
24
24
Req. No. 9539 Page 2
 1 1. Purports to run with the land or to be binding on future
1
2 owners of interests in the real property;
2
3 2. Allows for assignment of the right to provide service
3
4 without notice to and consent of the owner of residential real
4
5 estate; or
5
6 3. Purports to create a lien, encumbrance, or other real
6
7 property security interest.
7
8 B. This act does not apply to:
8
9 1. A home warranty or similar product that covers the cost of
9
10 maintenance of a major home system, such as plumbing, HVAC or
10
11 electrical wiring for a fixed period;
11
12 2. An insurance contract;
12
13 3. An option or right of refusal to purchase the residential
13
14 real estate;
14
15 4. A declaration created in the formation of a common-interest
15
16 community or an amendment thereto;
16
17 5. A maintenance or repair agreement entered by an owners'
17
18 association in a common-interest community;
18
19 6. A mortgage loan or a commitment to make or receive a
19
20 mortgage loan;
20
21 7. A security agreement under the Uniform Commercial Code
21
22 relating to the sale or rental of personal property or fixtures; or
22
23 8. Water, sewer, electrical, telephone, cable, or other
23
24 regulated utility service providers.
24
Req. No. 9539 Page 3
 1 C. This act does not impair any lien right granted pursuant to
1
2 Oklahoma law.
2
3 SECTION 4. NEW LAW A new section of law to be codified
3
4 in the Oklahoma Statutes as Section 304 of Title 16, unless there is
4
5 created a duplication in numbering, reads as follows:
5
6 If a service agreement is deemed unfair under this act it is
6
7 unenforceable.
7
8 SECTION 5. NEW LAW A new section of law to be codified
8
9 in the Oklahoma Statutes as Section 305 of Title 16, unless there is
9
10 created a duplication in numbering, reads as follows:
10
11 1. No person shall record or cause to be recorded an unfair
11
12 service agreement or notice or memorandum thereof in this state.
12
13 2. A county clerk's office shall refuse to accept for
13
14 recordation an unfair service agreement.
14
15 3. In the event that a county clerk does accidently record an
15
16 unfair service agreement, the county clerk shall incur no liability
16
17 for doing so.
17
18 4. If an unfair service agreement is recorded in this state, it
18
19 shall not provide actual or constructive notice against an otherwise
19
20 bona fide purchaser or creditor.
20
21 SECTION 6. NEW LAW A new section of law to be codified
21
22 in the Oklahoma Statutes as Section 306 of Title 16, unless there is
22
23 created a duplication in numbering, reads as follows:
23
24
24
Req. No. 9539 Page 4
 1 If an unfair service agreement or a notice or memorandum thereof
1
2 is recorded in this state, any person with an interest in the real
2
3 property that is the subject of that agreement may apply to a
3
4 district court in the county where the recording exists to record a
4
5 court order declaring the agreement unenforceable.
5
6 SECTION 7. NEW LAW A new section of law to be codified
6
7 in the Oklahoma Statutes as Section 307 of Title 16, unless there is
7
8 created a duplication in numbering, reads as follows:
8
9 If an unfair service agreement or a notice or memorandum thereof
9
10 is recorded in this state, any person with an interest in the real
10
11 property that is the subject of that agreement may recover such
11
12 actual damages, costs and attorney fees as may be proven against the
12
13 service provider who recorded the agreement.
13
14 SECTION 8. This act shall become effective November 1, 2024.
14
15
15
16 59-2-9539 JL 01/02/24
16
17
17
18
18
19
19
20
20
21
21
22
22
23
23
24
24
Req. No. 9539 Page 5