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NC H422

Bill

Status

Passed

8/24/2023

Primary Sponsor

Kyle Hall

Click for details

Origin

House of Representatives

2023-2024 Session

AI Summary

  • Prohibits real estate service agreements lasting more than one year that run with the land, bind future owners, allow assignment without consent, or create liens on residential property in North Carolina.

  • Declares unfair real estate service agreements void and unenforceable, with service providers having no right to refund consideration paid by owners or buyers.

  • Prohibits recording of unfair real estate service agreements; any recorded agreement is void and does not operate as a lien, encumbrance, or provide notice to interested parties.

  • Allows any person with an interest in the property to recover damages, costs, and attorney's fees against the service provider, with recoveries not offset by any consideration paid to the property owner.

  • Exempts home warranties, insurance contracts, homeowners' association agreements, utility services, property management contracts, and mechanics' or commercial real estate broker liens from these prohibitions.

Legislative Description

Unfair Real Estate Agreements Act

Commerce; Consumer Protection; Contracts; Corporations

Last Action

Ch. SL 2023-117

8/24/2023

Committee Referrals

Rules and Operations of the Senate6/14/2023
Judiciary5/18/2023
Rules and Operations of the Senate4/5/2023
Rules, Calendar, and Operations of the House3/29/2023
Judiciary I3/22/2023

Full Bill Text

No bill text available