NJ S1817

Service agreements for residential real estate (1-4 dwelling units) become unlawful if services extend beyond one year and the agreement claims to bind future property owners, allows assignment without owner consent, or creates a lien or encumbrance on the property.

Recording an unlawful service agreement with a county recording officer constitutes a fourth-degree crime, and such recordings provide no legal notice to subsequent purchasers or creditors.

Property owners affected by recorded unlawful service agreements may file court complaints to declare the agreement unenforceable and recover actual damages, costs, and attorney's fees from the service provider.

Exemptions include home warranties for major systems (plumbing, HVAC, electrical), insurance contracts, homeowners' association maintenance agreements, mortgage loans, and regulated utility services.

The law applies to service agreements executed or renewed after the enactment date and supplements New Jersey's existing consumer fraud protections under P.L.1960, c.39.