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TX SB2957
Bill
Status
3/14/2025
Primary Sponsor
Tan Parker
Click for details
AI Summary
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Prohibits "unfair service agreements" for residential real estate (1-4 dwelling units) that extend beyond one year and either purport to run with the land, allow assignment without owner consent, or create liens on the property
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Declares unfair service agreements void and unenforceable, and classifies entering into such agreements with consumers as a deceptive trade practice under the Texas Deceptive Trade Practices Act
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Creates a Class A misdemeanor offense for filing or recording an unfair service agreement or notice thereof with county records, and authorizes county clerks to refuse to record such documents
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Exempts home warranties, insurance contracts, HOA declarations and maintenance agreements, mortgage loans, utility service contracts, and purchase options from the prohibition
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Allows property owners to seek a court order declaring recorded unfair agreements void, and entitles them to recover actual damages plus reasonable attorney's fees from service providers who recorded such agreements
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Takes effect September 1, 2025, and applies only to contracts entered into on or after that date
Legislative Description
Relating to prohibiting the use of unfair service agreements; creating an offense.
Property Interests
Last Action
Referred to Business & Commerce
4/7/2025