Assembly Bill A5886C

2025-2026 Legislative Session

Prohibits unfair residential real estate service agreements

download bill text pdf

Sponsored By

Current Bill Status - In Assembly Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Bill Amendments

2025-A5886 - Details

See Senate Version of this Bill:
S6361
Current Committee:
Assembly Codes
Law Section:
General Business Law
Laws Affected:
Add Art 36-E §§778-aaa - 778-eee, Gen Bus L

2025-A5886 - Summary

Prohibits unfair residential real estate service agreements which are certain service agreements which are not to be performed within two years following the time such agreement is entered into.

2025-A5886 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5886
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 24, 2025
                                ___________
 
 Introduced  by  M. of A. CRUZ -- read once and referred to the Committee
   on Consumer Affairs and Protection
 
 AN ACT to amend the general business law,  in  relation  to  prohibiting
   unfair residential real estate service agreements
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "prohibition of unfair real estate service agreements act".
   §  2. Legislative intent. In an effort to protect consumers from fraud
 and abuse by unscrupulous actors, this act prohibits  the  use  of  real
 estate  service  agreements  that  are unfair to an owner of residential
 real estate or to other persons who  may  become  owners  of  that  real
 estate  in the future, and further prohibits the recording of such resi-
 dential real estate service agreements so that the public  records  will
 not  be  clouded by them and provides remedies for owners who are incon-
 venienced or damaged by the recording of such agreements.
   § 3. The general business law is amended by adding a new article  36-E
 to read as follows:
                               ARTICLE 36-E
           PROHIBITION OF UNFAIR REAL ESTATE SERVICE AGREEMENTS
 SECTION 778-AAA. DEFINITIONS.
         778-BBB. PROHIBITION  AGAINST UNFAIR SERVICE AGREEMENTS; RECORD-
                    ING THEREOF.
         778-CCC. DECEPTIVE ACTS AND PRACTICES.
         778-DDD. ENFORCEMENT; ACTION BY THE ATTORNEY GENERAL.
         778-EEE. SEVERABILITY.
   § 778-AAA. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING  TERMS,
 UNLESS  THE  CONTEXT  REQUIRES OTHERWISE, SHALL HAVE THE FOLLOWING MEAN-
 INGS:
   1. "PERSON" MEANS A NATURAL PERSON, PARTNERSHIP, ASSOCIATION,  COOPER-
 ATIVE, CORPORATION, TRUST, OR OTHER LEGAL ENTITY.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05484-01-5
              

2025-A5886A - Details

See Senate Version of this Bill:
S6361
Current Committee:
Assembly Codes
Law Section:
General Business Law
Laws Affected:
Add Art 36-E §§778-aaa - 778-eee, Gen Bus L

2025-A5886A - Summary

Prohibits unfair residential real estate service agreements which are certain service agreements which are not to be performed within two years following the time such agreement is entered into.

2025-A5886A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5886--A
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 24, 2025
                                ___________
 
 Introduced  by  M. of A. CRUZ -- read once and referred to the Committee
   on Consumer Affairs  and  Protection  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 AN ACT to amend the general business law,  in  relation  to  prohibiting
   unfair residential real estate service agreements

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "prohibition of unfair real estate service agreements act".
   §  2. Legislative intent. In an effort to protect consumers from fraud
 and abuse by unscrupulous actors, this act prohibits  the  use  of  real
 estate  service  agreements  that  are unfair to an owner of residential
 real estate or to other persons who  may  become  owners  of  that  real
 estate  in the future, and further prohibits the recording of such resi-
 dential real estate service agreements so that the public  records  will
 not  be  clouded by them and provides remedies for owners who are incon-
 venienced or damaged by the recording of such agreements.
   § 3. The general business law is amended by adding a new article  36-E
 to read as follows:
                               ARTICLE 36-E
           PROHIBITION OF UNFAIR REAL ESTATE SERVICE AGREEMENTS
 SECTION 778-AAA. DEFINITIONS.
         778-BBB. PROHIBITION  AGAINST UNFAIR SERVICE AGREEMENTS; RECORD-
                    ING THEREOF.
         778-CCC. DECEPTIVE ACTS AND PRACTICES.
         778-DDD. ENFORCEMENT; ACTION BY THE ATTORNEY GENERAL.
         778-EEE. SEVERABILITY.
   § 778-AAA. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING  TERMS,
 UNLESS  THE  CONTEXT  REQUIRES OTHERWISE, SHALL HAVE THE FOLLOWING MEAN-
 INGS:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05484-02-5
              

co-Sponsors

2025-A5886B - Details

See Senate Version of this Bill:
S6361
Current Committee:
Assembly Codes
Law Section:
General Business Law
Laws Affected:
Add Art 36-E §§778-aaa - 778-eee, Gen Bus L

2025-A5886B - Summary

Prohibits unfair residential real estate service agreements which are certain service agreements which are not to be performed within two years following the time such agreement is entered into.

2025-A5886B - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5886--B
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 24, 2025
                                ___________
 
 Introduced  by  M. of A. CRUZ -- read once and referred to the Committee
   on Consumer Affairs  and  Protection  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee -- again reported from said  committee  with  amendments,  ordered
   reprinted as amended and recommitted to said committee

 AN  ACT  to  amend  the general business law, in relation to prohibiting
   unfair residential real estate service agreements
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "prohibition of unfair real estate service agreements act".
   § 2. Legislative intent. In an effort to protect consumers from  fraud
 and  abuse  by  unscrupulous  actors, this act prohibits the use of real
 estate service agreements that are unfair to  an  owner  of  residential
 real  estate  or  to  other  persons  who may become owners of that real
 estate in the future, and further prohibits the recording of such  resi-
 dential  real  estate service agreements so that the public records will
 not be clouded by them and provides remedies for owners who  are  incon-
 venienced or damaged by the recording of such agreements.
   §  3. The general business law is amended by adding a new article 36-E
 to read as follows:
                               ARTICLE 36-E
           PROHIBITION OF UNFAIR REAL ESTATE SERVICE AGREEMENTS
 SECTION 778-AAA. DEFINITIONS.
         778-BBB. PROHIBITION AGAINST UNFAIR SERVICE AGREEMENTS;  RECORD-
                    ING THEREOF.
         778-CCC. DECEPTIVE ACTS AND PRACTICES.
         778-DDD. ENFORCEMENT; ACTION BY THE ATTORNEY GENERAL.
         778-EEE. SEVERABILITY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05484-04-5
 A. 5886--B                          2
 
              

co-Sponsors

2025-A5886C (ACTIVE) - Details

See Senate Version of this Bill:
S6361
Current Committee:
Assembly Codes
Law Section:
General Business Law
Laws Affected:
Add Art 36-E §§778-aaa - 778-eee, Gen Bus L

2025-A5886C (ACTIVE) - Summary

Prohibits unfair residential real estate service agreements which are certain service agreements which are not to be performed within two years following the time such agreement is entered into.

2025-A5886C (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5886--C
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 24, 2025
                                ___________
 
 Introduced  by  M.  of  A.  CRUZ,  LEE  -- read once and referred to the
   Committee on Consumer Affairs and Protection -- committee  discharged,
   bill  amended,  ordered  reprinted  as amended and recommitted to said
   committee -- again  reported  from  said  committee  with  amendments,
   ordered  reprinted  as  amended  and  recommitted to said committee --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted  to said committee -- reported and referred to the Commit-
   tee on Codes
 
 AN ACT to amend the general business law,  in  relation  to  prohibiting
   unfair residential real estate service agreements
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "prohibition of unfair real estate service agreements act".
   §  2. Legislative intent. In an effort to protect consumers from fraud
 and abuse by unscrupulous actors, this act prohibits  the  use  of  real
 estate  service  agreements  that  are unfair to an owner of residential
 real estate or to other persons who  may  become  owners  of  that  real
 estate  in the future, and further prohibits the recording of such resi-
 dential real estate service agreements so that the public  records  will
 not  be  clouded by them and provides remedies for owners who are incon-
 venienced or damaged by the recording of such agreements.
   § 3. The general business law is amended by adding a new article  36-E
 to read as follows:
                               ARTICLE 36-E
           PROHIBITION OF UNFAIR REAL ESTATE SERVICE AGREEMENTS
 SECTION 778-AAA. DEFINITIONS.
         778-BBB. PROHIBITION  AGAINST UNFAIR SERVICE AGREEMENTS; RECORD-
                    ING THEREOF.
         778-CCC. DECEPTIVE ACTS AND PRACTICES.
         778-DDD. ENFORCEMENT; ACTION BY THE ATTORNEY GENERAL.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05484-06-5
              

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