AN ACT TO PROHIBIT UNFAIR REAL ESTATE SERVICE AGREEMENTS FOR RESIDENTIAL REAL ESTATE. SL 2023-117. Enacted August 24, 2023. Effective August 24, 2023.
UNFAIR REAL ESTATE AGREEMENTS ACT.
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View NCGA Bill Details | 2023-2024 Session |
AN ACT TO PROHIBIT UNFAIR REAL ESTATE SERVICE AGREEMENTS FOR RESIDENTIAL REAL ESTATE.Intro. by K. Hall, Miller, Blackwell, Alston.
Bill History:
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Tue, 21 Mar 2023 House: Filed
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Wed, 22 Mar 2023 House: Passed 1st Reading
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Wed, 29 Mar 2023 House: Reptd Fav Com Substitute
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Wed, 29 Mar 2023 House: Re-ref Com On Rules, Calendar, and Operations of the House
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Tue, 4 Apr 2023 House: Reptd Fav Com Sub 2
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Tue, 4 Apr 2023 House: Cal Pursuant Rule 36(b)
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Tue, 4 Apr 2023 House: Added to Calendar
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Tue, 4 Apr 2023 House: Passed 2nd Reading
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Tue, 4 Apr 2023 House: Passed 3rd Reading
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Wed, 5 Apr 2023 House: Regular Message Sent To Senate
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Wed, 5 Apr 2023 Senate: Regular Message Received From House
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Wed, 5 Apr 2023 Senate: Passed 1st Reading
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Wed, 5 Apr 2023 Senate: Ref To Com On Rules and Operations of the Senate
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Thu, 18 May 2023 Senate: Withdrawn From Com
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Wed, 14 Jun 2023 Senate: Reptd Fav Com Substitute
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Wed, 14 Jun 2023 Senate: Com Substitute Adopted
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Wed, 14 Jun 2023 Senate: Re-ref Com On Rules and Operations of the Senate
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Tue, 15 Aug 2023 Senate: Reptd Fav
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Wed, 16 Aug 2023 Senate: Passed 2nd Reading
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Wed, 16 Aug 2023 Senate: Passed 3rd Reading
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Wed, 16 Aug 2023 Senate: Special Message Sent To House
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Wed, 16 Aug 2023 House: Special Message Received For Concurrence in S Com Sub
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Wed, 16 Aug 2023 House: Added to Calendar
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Wed, 16 Aug 2023 House: Concurred In S Com Sub
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Wed, 16 Aug 2023 House: Ordered Enrolled
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Thu, 17 Aug 2023 House: Ratified
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Thu, 17 Aug 2023 House: Pres. To Gov. 8/17/2023
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Thu, 24 Aug 2023 House: Signed by Gov. 8/24/2023
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Thu, 24 Aug 2023 House: Ch. SL 2023-117
Bill Summaries:
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Bill H 422 (2023-2024)Summary date: Aug 24 2023 - View Summary
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Bill H 422 (2023-2024)Summary date: Jun 14 2023 - View Summary
Senate committee substitute to the 3rd edition makes the following change. Amends new GS 93A-85.4 (classifying violations of new Article 7, Prohibition of Unfair Real Estate Service Agreements, as deceptive trade practices) to authorize any party aggrieved by the a violation of Article 7 (instead of any persons whose real property is encumbered by an unfair real estate service agreement) to bring a cause of action against the service provider and provides they are entitled to relief under GS Chapter 75 (Monopolies, Trusts and Consumer Protection).
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Bill H 422 (2023-2024)Summary date: Apr 4 2023 - View Summary
House committee substitute to the 2nd edition makes the following changes.
Amends new 93A-85.2, which prohibits unfair real estate service agreements, to add an exemption for declarations created pursuant to GS Chapter 47A (Unit Ownership), Chapter 47C (North Carolina Condominium Act), or Chapter 47F (North Carolina Planned Community Act).
Amends new GS 93A-85.3, which prohibits the recording of an unfair real estate service agreement, to eliminate the provision which authorized the register of deeds to refuse to accept an unfair real estate service agreement, or notice or memorandum thereof, for recordation.
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Bill H 422 (2023-2024)Summary date: Mar 29 2023 - View Summary
House committee substitute to the 1st edition makes the following changes.
Amends new GS 93A-85.1 as follows. Changes the definitions to delete defined term agent and amends the substance of the definitions of residential real estate and service provider. Removes capitalization requirements for real estate service agreement, residential real estate, and service provider. Adds new defined term unfair real estate service agreement.
Amends new GS 93A-85.2 as follows. Reorganizes the following provisions of GS 93A-85.4 into the statute: (1) language specifying that unfair real estate agreements are void, in addition to being unfair and (2) the bar on reimbursements for service providers in connection with an unfair real estate service agreement. Reorganizes the exemptions originally set forth in new GS 93A-85.3 into a subsection of GS 93A-85.2. Makes technical and organizational changes.
Makes organizational changes, renumbering GS 93A-85.6 (prohibiting recording) to GS 93A-85.3 and GS 93A-85.5 (pertaining to deceptive acts) to GS 93-85.4. Deletes proposed GS 93A-85.7 (pertaining to right of recovery).
Amends new GS 93A-85.3 (prohibiting recording) to specify that any recording of an unfair real estate service agreement constitutes a Class I felony (filing a false lien or encumbrance) under GS 14-118.6(a). Adds new subsection GS 93A-85.3(d), pertaining to right of recovery for persons with an interest in residential real estate identified by a recording that is void because of an unfair real estate service agreement. Allows such persons to recover damages, costs, and attorney's fees that may be proved against the service provider named in the unfair real estate service agreement. Specifies that any actual damages, costs, and attorney's fees that are proved against the service provider will not be offset by the consideration paid by the service provider to the owner or buyer of the residential real estate.
Makes technical changes to have terms adhere to the capitalization conventions of the amended terms.
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Bill H 422 (2023-2024)Summary date: Mar 21 2023 - View Summary
Enacts new Article 7, Prohibition of Unfair Real Estate Service Agreements, in GS Chapter 93A, providing as follows. Sets out the Article's purpose and sets out and defines terms used in the Article. Defines Real Estate Service Agreement as a written contract between an Agent, Service Provider, Person, and the owner of Residential Real Estate or a potential buyer of Residential Real Estate to provide services, current or future, in connection with the maintenance, purchase, or sale of Residential Real Estate. Defines residential real estate as real property in the State used primarily for personal, family, or household purposes, by an owner, tenant, or any other party.
Makes a Real Estate Service Agreement unfair if it is effective and binding for more than one year from the effective date of the Real Estate Service Agreement and has any of the following characteristics: (1) the Real Estate Service Agreement purports to run with the land or is binding on future owners of Residential Real Estate identified in the Real Estate Service Agreement; (2) the Real Estate Service Agreement expressly allows for assignment of the right to provide those services without notice or consent of the owner or buyer; or (3) the Real Estate Service Agreement purports to create a lien, encumbrance, or other real property security interest. Sets out eight types of agreements that are excluded from the Article.
Makes an agreement that is in violation of these provisions an Unfair Real Estate Service Agreement and void and unenforceable. Specifies that an Agent, Service Provider, or Person has no right to a refund of the consideration paid to the owner or buyer in connection with the Unfair Real Estate Service Agreement.
Makes the recording of any Unfair Real Estate Service Agreement, or notice or memorandum thereof, that is in violation of this Article also a violation of GS 14-118.6(a) (making it a Class I felony to present for filing or recording in a public record or a private record generally available to the public a false lien or encumbrance against the real or personal property of an owner or beneficial interest holder, knowing or having reason to know that the lien or encumbrance is false or contains a materially false, fictitious, or fraudulent statement or representation). Specifies that a violation of the Article is an unfair or deceptive trade practice. Allows a party whose real property is encumbered by an Unfair Real Estate Service Agreement to bring a cause of action against the Agent, Service Provider, or Person and to be entitled to the relief available in GS Chapter 75 (Monopolies, Trusts and Consumer Protection). Provides that any recoveries available under GS Chapter 75 will not be offset by the consideration paid by an Agent, Service Provider, or Person to the owner or buyer in connection with the Unfair Real Estate Service Agreement. Gives the Attorney General enforcement power.
Prohibits an Unfair Real Estate Service Agreement, or notice or memorandum thereof, from operating as a lien, encumbrance, or security interest. Prohibits requiring an owner or buyer from recording any document voiding an Unfair Real Estate Service Agreement, or notice or memorandum thereof, recorded in violation of these provisions. Allows but does not require the register of deeds to refuse to accept an Unfair Real Estate Service Agreement, or notice or memorandum thereof, for recordation. Specifies that recordation does not provide actual or constructive notice to any party interested in the Residential Real Estate identified in the Unfair Real Estate Service Agreement.
Allows a party with an interest in the real estate under which an Unfair Real Estate Service Agreement, or notice or memorandum thereof, is recorded in this State, to recover damages, costs, and attorneys' fees. Specifies that actual damages, costs, and attorneys' fees that are proved against the Agent, Service Provider, or Person will not be offset by the consideration paid by the Agent, Service Provider, or Person to the owner or buyer of the Unfair Real Estate Service Agreement.
Makes conforming changes to GS 6-18.
Identical to S 344, filed 3/21/23.