Texas 2025 - 89th Regular

Texas Senate Bill SB2957 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R9055 PRL-F
2	2	By: Parker S.B. No. 2957
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to prohibiting the use of unfair service agreements;
10	10	creating an offense.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 17, Business & Commerce Code, is amended
13	13	by adding Subchapter M to read as follows:
14	14	SUBCHAPTER M. UNFAIR SERVICE AGREEMENTS
15	15	Sec. 17.971. DEFINITIONS. In this subchapter:
16	16	(1) "Residential real estate" means real property
17	17	located in this state used primarily for personal, family, or
18	18	household purposes and improved by one to four dwelling units.
19	19	(2) "Service agreement" means a contract under which a
20	20	person agrees to provide services in connection with:
21	21	(A) the maintenance of residential real estate;
22	22	or
23	23	(B) the purchase or sale of residential real
24	24	estate.
25	25	(3) "Service provider" means an individual or entity
26	26	that provides services to a person.
27	27	Sec. 17.972. CHARACTERISTICS OF UNFAIR SERVICE AGREEMENTS.
28	28	(a) A service agreement is unfair under this subchapter if any part
29	29	of the service subject to the agreement is not to be performed on or
30	30	before the first anniversary of the date the agreement is entered
31	31	into and:
32	32	(1) purports to run with the land or bind current
33	33	owners or successors in title to specified real property located in
34	34	this state;
35	35	(2) allows for assignment of the right to provide
36	36	service without notice to and consent of the owner of residential
37	37	real estate; or
38	38	(3) purports to create a lien, encumbrance, or other
39	39	real property security interest.
40	40	(b) This section does not apply to:
41	41	(1) a home warranty or similar guarantee that is
42	42	designed to guarantee or warrant the repair or service of an
43	43	appliance, system, or component of a residential property for a
44	44	fixed period;
45	45	(2) an insurance contract;
46	46	(3) an option or right of refusal to purchase the
47	47	residential real estate;
48	48	(4) a declaration created in the formation of a common
49	49	interest community or an amendment to the declaration;
50	50	(5) a maintenance or repair agreement entered into by
51	51	a homeowners' association in a common interest community;
52	52	(6) a mortgage loan or a commitment to make or receive
53	53	a mortgage loan;
54	54	(7) a security agreement under Title 1 relating to the
55	55	sale or lease of personal property or fixtures; or
56	56	(8) water, sewer, electrical, telephone, cable, or
57	57	other regulated utility service providers.
58	58	(c) This section does not impair the rights granted by
59	59	Section 53.123, Property Code.
60	60	(d) A service agreement that is unfair is void and
61	61	unenforceable.
62	62	(e) A person that enters into an unfair service agreement
63	63	with a consumer commits a false, misleading, or deceptive act or
64	64	practice actionable under Subchapter E.
65	65	Sec. 17.973. RECORDING PROHIBITED. (a) A person may not
66	66	file for recording or cause to be filed for recording an unfair
67	67	service agreement or notice or memorandum thereof.
68	68	(b) A person commits an offense if the person files for
69	69	recording or causes to be filed for recording an unfair service
70	70	agreement or notice or memorandum of an unfair service agreement.
71	71	(c) An offense under this section is a Class A misdemeanor.
72	72	(d) Notwithstanding any other law, a county clerk may refuse
73	73	to record an unfair service agreement.
74	74	(e) If an unfair service agreement is recorded, it does not
75	75	provide actual or constructive notice against an otherwise bona
76	76	fide purchaser or creditor.
77	77	Sec. 17.974. APPLICATION FOR ISSUANCE OF COURT ORDER. If an
78	78	unfair service agreement or a notice or memorandum thereof is
79	79	recorded, any person with an interest in the real property that is
80	80	the subject of that agreement may file an application with the
81	81	district court in the county in which the agreement is recorded for
82	82	the issuance of an order declaring that the agreement is void and
83	83	unenforceable.
84	84	Sec. 17.975. DAMAGES. If an unfair service agreement or a
85	85	notice or memorandum thereof is recorded, any person with an
86	86	interest in the real property that is the subject of that agreement
87	87	is entitled to recover from the service provider who recorded the
88	88	agreement:
89	89	(1) actual damages; and
90	90	(2) reasonable attorney's fees and other litigation
91	91	costs reasonably incurred.
92	92	SECTION 2. Subchapter M, Chapter 17, Business & Commerce
93	93	Code, as added by this Act, applies only to a contract entered into
94	94	on or after the effective date of this Act.
95	95	SECTION 3. This Act takes effect September 1, 2025.