Text to be removed highlighted in red.
1 New Section; Service Agreements in Residential Real Estate Transactions. Amend RSA 356-A by inserting after section 16 the following new section:
356-A:16-a Service Agreements in Residential Real Estate Transactions.
I. In this section:
(a) "Service agreement" means a contract under which a person agrees to provide services in connection with the maintenance, purchase, or sale of residential real estate.
(b) "Residential real estate" means real property located in this state, used primarily for personal, family, or household purposes, and improved by one to 4 dwelling units.
(c) "Recording" means presenting a document to a county registrar of deeds for official placement in the public land records.
(d) "Service provider" means an individual or entity that provides services to a person.
(e) "Person" means a natural person, partnership, association, cooperative, corporation, trust, or other legal entity.
II. A service agreement is unfair under this section if any part of the service subject to the agreement is not to be performed within one year after the agreement is entered into and has any of the following characteristics:
(a) The service agreement purports to run with the land or to be binding on future owners of interests in the real property;
(b) The service agreement allows for assignment of the right to provide service without notice to and consent of the owner of residential real estate; or
(c) The service agreement purports to create a lien, encumbrance, or other real property security interest.
III. This section does not apply to:
(a) A home warranty or similar product that covers the cost of maintaining a major home system (e.g., plumbing, HVAC, or electrical wiring) for a fixed period;
(b) An insurance contract;
(c) An option or right of refusal to purchase the residential real estate;
(d) A declaration created in the formation of a common interest community or an amendment thereto;
(e) A maintenance or repair agreement entered by a homeowners' association in a common interest community;
(f) A mortgage loan or a commitment to make or receive a mortgage loan;
(g) A security agreement under the Uniform Commercial Code relating to the sale or rental of personal property or fixtures; or
(h) Water, sewer, electrical, telephone, cable, or other regulated utility service providers.
IV. This section does not impair the rights granted by the mechanics lien under RSA 447:2.
V. Any person who causes or attempts to cause a real estate owner to enter into an unfair service agreement, as defined under this section, shall be deemed to have committed an unfair or deceptive act or practice as defined under RSA 358-A:2.
VI.(a) No person shall record or cause an unfair service agreement, or notice or memorandum thereof, to be recorded.
(b) A person who records or causes an unfair service agreement, or notice or memorandum thereof, to be recorded shall be guilty of a Class A misdemeanor.
(c) Notwithstanding RSA 477:3-a, a county registrar of deeds may refuse to record an unfair service agreement.
(d) If an unfair service agreement is recorded, it shall not serve as actual or constructive notice to a bona fide purchaser or creditor.
(e) If an unfair service agreement, or a notice or memorandum thereof, is recorded, any person with an interest in the affected real property may apply to a district court in the county where the recording exists to obtain a court order declaring the agreement unenforceable.
(f) If an unfair service agreement, or a notice or memorandum thereof, is recorded, any person with an interest in the affected real property may recover proven actual damages, costs, and attorney's fees from the service provider who recorded the agreement.
2 Effective Date. This act shall take effect January 1, 2026.
Text to be added highlighted in green.
1 New Section; Service Agreements in Residential Real Estate Transactions. Amend RSA 356-A by inserting after section 16 the following new section:
356-A:16-a Service Agreements in Residential Real Estate Transactions.
I. In this section:
(a) "Service agreement" means a contract under which a person agrees to provide services in connection with the maintenance, purchase, or sale of residential real estate.
(b) "Residential real estate" means real property located in this state, used primarily for personal, family, or household purposes, and improved by one to 4 dwelling units.
(c) "Recording" means presenting a document to a county registrar of deeds for official placement in the public land records.
(d) "Service provider" means an individual or entity that provides services to a person.
(e) "Person" means a natural person, partnership, association, cooperative, corporation, trust, or other legal entity.
II. A service agreement is unfair under this section if any part of the service subject to the agreement is not to be performed within one year after the agreement is entered into and has any of the following characteristics:
(a) The service agreement purports to run with the land or to be binding on future owners of interests in the real property;
(b) The service agreement allows for assignment of the right to provide service without notice to and consent of the owner of residential real estate; or
(c) The service agreement purports to create a lien, encumbrance, or other real property security interest.
III. This section does not apply to:
(a) A home warranty or similar product that covers the cost of maintaining a major home system (e.g., plumbing, HVAC, or electrical wiring) for a fixed period;
(b) An insurance contract;
(c) An option or right of refusal to purchase the residential real estate;
(d) A declaration created in the formation of a common interest community or an amendment thereto;
(e) A maintenance or repair agreement entered by a homeowners' association in a common interest community;
(f) A mortgage loan or a commitment to make or receive a mortgage loan;
(g) A security agreement under the Uniform Commercial Code relating to the sale or rental of personal property or fixtures; or
(h) Water, sewer, electrical, telephone, cable, or other regulated utility service providers.
IV. This section does not impair the rights granted by the mechanics lien under RSA 447:2.
V. Any person who causes or attempts to cause a real estate owner to enter into an unfair service agreement, as defined under this section, shall be deemed to have committed an unfair or deceptive act or practice as defined under RSA 358-A:2.
VI.(a) No person shall record or cause an unfair service agreement, or notice or memorandum thereof, to be recorded.
(b) A person who records or causes an unfair service agreement, or notice or memorandum thereof, to be recorded shall be guilty of a Class A misdemeanor.
(c) Notwithstanding RSA 477:3-a, a county registrar of deeds may refuse to record an unfair service agreement.
(d) If an unfair service agreement is recorded, it shall not serve as actual or constructive notice to a bona fide purchaser or creditor.
(e) If an unfair service agreement, or a notice or memorandum thereof, is recorded, any person with an interest in the affected real property may apply to a district court in the county where the recording exists to obtain a court order declaring the agreement unenforceable.
(f) If an unfair service agreement, or a notice or memorandum thereof, is recorded, any person with an interest in the affected real property may recover proven actual damages, costs, and attorney's fees from the service provider who recorded the agreement.
2 Effective Date. This act shall take effect January 1, 2026.