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 clerks refuse to accept such documents for recordation and provides that if a county clerk inadvertently records them, they will not incur any liability. Additionally, the bill clarifies that if an unfair service agreement or related document is recorded, it will not provide actual or constructive notice to bona fide purchasers, creditors, or title companies, and will be deemed void.

The amendments also include the addition of specific language regarding the treatment of notices and memorandums in relation to unfair service agreements. The effective date for these changes is set for November 1, 2025. Overall, the bill aims to protect consumers from unfair service agreements by ensuring that such documents cannot be legally recognized or enforced once recorded.