Texas HB4204 prohibits unfair service agreements for residential real estate and creates a Class A misdemeanor offense for recording such agreements.

Texas HB4204 amends the Business & Commerce Code to prohibit unfair service agreements for residential real estate. An unfair service agreement is one that is not to be performed within the first anniversary of the agreement, purports to run with the land or bind successors in title, allows for assignment without owner consent, or creates a lien or encumbrance. The bill allows property owners to seek court orders declaring such agreements void and unenforceable, and to recover damages and attorney's fees. Recording an unfair service agreement is a Class A misdemeanor.

Texas HB4204 prohibits unfair service agreements for residential real estate and creates a Class A misdemeanor offense for recording such agreements.

Texas HB4204 amends the Business & Commerce Code to prohibit unfair service agreements for residential real estate. An unfair service agreement is one that is not to be performed within the first anniversary of the agreement, purports to run with the land or bind successors in title, allows for assignment without owner consent, or creates a lien or encumbrance. The bill allows property owners to seek court orders declaring such agreements void and unenforceable, and to recover damages and attorney's fees. Recording an unfair service agreement is a Class A misdemeanor.