Actual or constructive notice. (1) (a) A residential property service agreement entered into after May 3, 2023, may not: (i) allow the services to be provided under the agreement to begin more than one year after the day on which the residential property service agreement is signed by all parties; (ii) indicate that the residential property service agreement: (A) runs with the land; (B) is binding on a future owner of an interest in the residential real estate that is the subject of the residential property service agreement; or (C) creates a lien, encumbrance, or other real property security interest; or (iii) allow for the assignment of the right to provide the services without notice to and agreement by the owner of the residential real estate that is the subject of the residential property service agreement. (b) A residential property service agreement that violates Subsection (1)(a): (i) is void; and (ii) does not provide actual or constructive notice to a bona fide purchaser or creditor. (2) (a) A person may not record or cause to be recorded: (i) a void residential property service agreement; or (ii) a notice or memorandum concerning a void residential property service agreement. (b) If a document is recorded in violation of Subsection (2)(a), a party with an interest in the residential real estate that is the subject of the void residential property service agreement may file a petition with a court of competent jurisdiction to recover actual damages from the person who violated Subsection (2)(a). (c) A document recorded in violation of Subsection (2)(a) may be a violation of Title 38, Chapter 9, Wrongful Lien Act.
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