This bill aims to protect owners of residential real estate from unfair service agreements by prohibiting such agreements and their recording, which could cloud public records and complicate future ownership. 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 liens or encumbrances. It specifies that unfair service agreements are unenforceable and categorizes them as deceptive practices under chapter 13.1 of title 6 (deceptive trade practices).

Furthermore, the bill prohibits the recording of unfair service agreements and imposes penalties for individuals who attempt to record such agreements, classifying it as a misdemeanor. If an unfair service agreement is recorded, any person with an interest in the real property may apply to the superior court to record a court order declaring the agreement unenforceable. Additionally, affected parties can recover actual damages, costs, and attorney's fees from the service provider who recorded the agreement. The act will take effect upon passage, ensuring immediate protection for current and future owners of residential real estate.