This bill aims to protect owners of residential real estate from unfair service agreements by prohibiting such agreements and their recording in public records. It introduces a new chapter, CHAPTER 50, titled "Prohibition of Unfair Service Agreements," which defines key terms such as "service agreement," "residential real estate," and "recording."

The bill outlines specific characteristics that make a service agreement unfair, including those that are not performed within one year, bind future owners, allow assignment without consent, or create a lien on the property. It clarifies that certain agreements, such as home warranties, insurance contracts, options to purchase real estate, declarations in common interest communities, maintenance agreements by homeowners associations, mortgage loans, security agreements under the UCC, utility service agreements, and monitoring services agreements for low- or moderate-income housing, are exempt from this prohibition.

Additionally, the bill establishes that unfair service agreements are unenforceable and categorizes them as deceptive acts under existing trade practices law. It prohibits the recording of such agreements and imposes penalties for those who attempt to do so, classifying the act of recording an unfair service agreement as a misdemeanor. If an unfair service agreement is recorded, affected parties can seek a court order to declare it unenforceable and recover actual damages, costs, and attorney's fees from the service provider who recorded the agreement. The act is set to take effect upon passage.