Bill No. 1177 amends the Prohibition of Unfair Service Agreements Act by introducing several key provisions aimed at enhancing the regulation of unfair service agreements. The bill explicitly prohibits the recording of unfair service agreements, notices, or memorandums in the state of Oklahoma. It mandates that county clerk's offices refuse to accept such documents for recordation. Additionally, if a county clerk inadvertently records an unfair service agreement or related notice, they will not be held liable for the error.

Furthermore, the bill stipulates that any recorded unfair service agreement, notice, or memorandum will not provide actual or constructive notice to bona fide purchasers, creditors, or title companies, and it will be deemed void. These changes are designed to protect consumers from unfair service agreements and ensure that such agreements do not affect property transactions. The act is set to take effect on November 1, 2025.