IL SB3420

Prohibits unfair service agreements on residential real estate (1-4 dwelling units) that extend beyond one year and run with the land, allow assignment without owner consent, or create liens or encumbrances.

Makes unfair service agreements unenforceable and classifies entering into such agreements with consumers as an unlawful deceptive business practice under the Consumer Fraud and Deceptive Business Practices Act.

Prohibits recording unfair service agreements or notices thereof; county recorders may refuse to accept such documents and recorded agreements provide no notice to bona fide purchasers or creditors.

Exempts home warranties, insurance contracts, purchase options, homeowners' association agreements, mortgages, security agreements under the Uniform Commercial Code, and utility service providers from this Act.

Allows property owners to seek court orders declaring recorded unfair service agreements unenforceable and to recover actual damages, costs, and attorney's fees from the service provider who recorded the agreement.