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TX HB4204

Bill

Status

Engrossed

5/16/2025

Primary Sponsor

Sam Harless

Click for details

Origin

House of Representatives

89th Legislature Regular Session

AI Summary

  • Defines "unfair service agreements" as contracts for residential real estate services (maintenance, purchase, or sale) lasting beyond one year that purport to run with the land, allow assignment without owner consent, or create liens/encumbrances on the property

  • Declares unfair service agreements void and unenforceable, and classifies entering into such agreements with consumers as a deceptive trade practice under Texas law

  • Creates a Class A misdemeanor for filing or causing to be filed an unfair service agreement or memorandum thereof with county records, and authorizes county clerks to refuse recording such documents

  • Exempts home warranties, insurance contracts, property owners' association agreements, mortgage loans, regulated utility services, and purchase options from the prohibition

  • Allows property owners to seek court orders declaring recorded unfair agreements void and to recover actual damages plus attorney's fees from service providers who recorded such agreements

  • Applies only to contracts entered into on or after September 1, 2025

Legislative Description

Relating to prohibiting the use of unfair service agreements; creating an offense.

Property Interests

Last Action

Co-sponsor authorized

5/28/2025

Committee Referrals

Business & Commerce5/19/2025
Trade, Workforce & Economic Development3/31/2025

Full Bill Text

No bill text available