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TX SB2957

Bill

Status

Introduced

3/14/2025

Primary Sponsor

Tan Parker

Click for details

Origin

Senate

89th Legislature Regular Session

AI Summary

  • 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

  • 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

  • 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

  • Exempts home warranties, insurance contracts, HOA declarations and maintenance agreements, mortgage loans, utility service contracts, and purchase options from the prohibition

  • 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

  • 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

Committee Referrals

Business & Commerce4/7/2025

Full Bill Text

No bill text available