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.