The proposed 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 render a service agreement unfair, including agreements that are not performed within one year, those that bind future owners, allow assignment without consent, or create liens or encumbrances. Certain exceptions are noted, such as home warranties, insurance contracts, and agreements related to common interest communities.

Additionally, the bill establishes that unfair service agreements are unenforceable and categorizes entering into such agreements as deceptive practices. It prohibits the recording of these agreements and imposes penalties for those who attempt to do so, classifying the act as a misdemeanor. The bill also allows individuals with an interest in the property to seek court orders to declare recorded unfair agreements unenforceable and to recover damages from service providers who recorded such agreements. The act is set to take effect upon passage.