| Chapter 053 |
| 2025 -- S 0133 SUBSTITUTE A Enacted 06/13/2025 |
| A N A C T |
| RELATING TO PROPERTY -- PROHIBITION OF UNFAIR SERVICE AGREEMENTS |
Introduced By: Senators LaMountain, Patalano, Burke, Felag, Tikoian, Lawson, and Dimitri |
| Date Introduced: January 31, 2025 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Legislative intent. |
| This act is intended to prohibit the use of service agreements that are unfair to an owner of |
| residential real estate who enters into such an agreement or to persons who may become owners of |
| that real estate in the future. The act also prohibits the recording of such agreements so that the |
| public records will not be clouded by them, and future owners will not be put to the burden of |
| bringing suits to remove them from their chains of title and provides remedies for owners who are |
| inconvenienced or damaged by the recording of such agreements. |
| SECTION 2. Title 34 of the General Laws entitled "PROPERTY" is hereby amended by |
| adding thereto the following chapter: |
| CHAPTER 50 |
| PROHIBITION OF UNFAIR SERVICE AGREEMENTS |
| 34-50-1. Definitions. |
| For the purposes of this chapter: |
| (1) “Service agreement” means a contract under which a person agrees to provide services |
| in connection with the maintenance of or purchase or sale of residential real estate. |
| (2) “Residential real estate” means real property located in this state which is used |
| primarily for personal, family, or household purposes and is improved by one to four (4) dwelling |
| units. |
| (3) “Recording” means presenting a document to a city or town clerk in the recorder of |
| deeds office for official placement in the public land records. |
| (4) “Service provider" means an individual or entity that provides services to a person. |
| (5) “Person” means a natural person, partnership, association, cooperative, corporation, |
| trust, or other legal entity. |
| 34-50-2. Unfair service agreements. |
| (a) A service agreement is unfair under this chapter if any part of the service subject to the |
| agreement is not to be performed within one year after the time it is entered into and has any of the |
| following characteristics: |
| (1) The service agreement purports to run with the land or to be binding on future owners |
| of interests in the real property; or |
| (2) The service agreement allows for assignment of the right to provide service without |
| notice to and consent of the owner of residential real estate; or |
| (3) The service agreement purports to create a lien, encumbrance, or other real property |
| security interest. |
| (b) This chapter does not apply to: |
| (1) A home warranty or similar product that covers the cost of maintenance of a major |
| home system (for example, plumbing, HVAC or electrical wiring) for a fixed period; or |
| (2) An insurance contract; or |
| (3) An option or right of refusal to purchase the residential real estate; or |
| (4) A declaration created in the formation of a common interest community or an |
| amendment thereto; or |
| (5) A maintenance or repair agreement entered by a homeowners’ association in a common |
| interest community; or |
| (6) A mortgage loan or a commitment to make or receive a mortgage loan; or |
| (7) A security agreement under the UCC relating to the sale or rental of personal property |
| or fixtures; or |
| (8) Water, sewer, electrical, telephone, cable, or other regulated utility service providers; |
| or |
| (9) A monitoring services agreement associated with any unit or development qualifying |
| as low- or moderate-income housing governed by chapter 53 of title 45 ("low and moderate income |
| housing"). |
| (c) This statute does not impair the rights granted by the mechanics lien statute of this state, |
| chapter 28 of title 34. |
| 34-50-3. Unfair service agreements unenforceable. |
| If a service agreement is unfair under this chapter it is unenforceable. |
| 34-50-4. Deceptive practices. |
| If a person enters into an unfair service agreement with a consumer, as defined in this |
| chapter, that agreement shall per se be deemed a deceptive act under chapter 13.1 of title 6 |
| (“deceptive trade practices”). |
| 34-50-5. Recording prohibited. |
| (a) No person shall record or cause to be recorded an unfair service agreement or notice or |
| memorandum thereof in this state. |
| (b) Any person who records or causes to be recorded an unfair service agreement or notice |
| or memorandum thereof in this state shall be guilty of a misdemeanor. |
| (c) Notwithstanding the recording statute of this state, chapter 13 of title 34, the city or |
| town clerk in the recorder of deeds office may refuse to accept for recordation an unfair service |
| agreement as defined herein. |
| (d) If an unfair service agreement is recorded in this state, it shall not provide actual or |
| constructive notice against an otherwise bona fide purchaser or creditor. |
| 34-50-6. Recording of court order. |
| If an unfair service agreement or a notice or memorandum thereof is recorded in this state, |
| any person with an interest in the real property that is the subject of that agreement may apply to |
| the superior court in the county where the recording exists to record a court order declaring the |
| agreement unenforceable. |
| 34-50-7. Rights of recovery. |
| If an unfair service agreement or a notice or memorandum thereof is recorded in this state, |
| any person with an interest in the real property that is the subject of that agreement may recover |
| such actual damages, costs and attorneys’ fees as may be proven against the service provider who |
| recorded the agreement. |
| SECTION 3. This act shall take effect upon passage. |
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| LC000981/SUB A |
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