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NC H422
Bill
Status
8/24/2023
Primary Sponsor
Kyle Hall
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AI Summary
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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.
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Declares unfair real estate service agreements void and unenforceable, with service providers having no right to refund consideration paid by owners or buyers.
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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.
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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.
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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