NY State Senate Bill 2025-S6361B

Current Bill Status - In Senate Committee Consumer Protection 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 27, 2025	print number 6361b
May 27, 2025	amend and recommit to consumer protection
May 07, 2025	print number 6361a
May 07, 2025	amend and recommit to consumer protection
Mar 11, 2025	referred to consumer protection

Bill Amendments

Original

B (Active)

2025-S6361 - Details

See Assembly Version of this Bill:: A5886
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add Art 36-E §§778-aaa - 778-eee, Gen Bus L

2025-S6361 - 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-S6361 - Sponsor Memo

                                 
BILL NUMBER: S6361

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting
unfair residential real estate service agreements

 
PURPOSE:

To protect homeowners from deceptive or unfair real estate service
agreements that create unnecessary liens, encumbrances, or binding obli-
gations on residential real property.

 
SUMMARY OF PROVISIONS:

* Section 1: Provides the short title of the bill as the "Prohibition of
Unfair Real Estate Service Agreements Act."

* Section 2: States legislative intent to prohibit the use and recording
of unfair residential real estate service agreements to prevent fraud
and consumer harm.

* Section 3: Adds a new Article 36-E to the General Business Law:

* Defines terms such as "unfair real estate service agreements,"
"recording," and "residential real estate."

* Prohibits agreements that bind future property owners, allow assign-
ment without owner consent, or create invalid liens or encumbrances.

* Declares that unfair agreements cannot be enforced or recorded, and
allows affected parties to seek court orders declaring such agreements
void.

* Designates such agreements as deceptive acts under § 349 of the Gener-
al Business Law.

* Grants enforcement authority to the attorney general and municipal
officials, and provides private right of action for injured parties.

* Section 4: Includes a severability clause to ensure remaining
provisions remain valid if parts of the act are deemed invalid.

* Section 5: Establishes the act's effective date as 90 days after
becoming law.

 
JUSTIFICATION:

Homeowners are increasingly targeted by predatory service providers who
use deceptive agreements to impose burdensome and hidden obligations on
residential properties. These agreements often:

* Purport to run with the land, unfairly binding future owners.

* Create invalid liens or encumbrances that cloud property titles.

* Allow assignment without homeowner consent, further complicating
resolution.
This legislation protects consumers by prohibiting these practices and
ensuring that any improperly recorded agreements are deemed unenforcea-
ble. It also provides legal remedies for affected parties and enforce-
ment mechanisms to deter such predatory actions.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

Minimal administrative costs anticipated for implementation and enforce-
ment.

 
EFFECTIVE DATE:
This act shall take effect on the 90th day after it becomes law.

2025-S6361 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6361
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 11, 2025
                                ___________
 
 Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer 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

 S. 6361                             2
 
   2.  "REAL  ESTATE  SERVICE  AGREEMENT"  MEANS A WRITTEN CONTRACT UNDER
 WHICH A PERSON AGREES TO PROVIDE SERVICES IN CONNECTION WITH THE MAINTE-
 NANCE OF OR PURCHASE OR SALE OF RESIDENTIAL REAL ESTATE.
   3.  "RECORDING"  MEANS  PRESENTING  A DOCUMENT TO A RECORDING OFFICER,
 WHETHER THE COUNTY CLERK OF THE COUNTY OR THE REGISTER  OF  THE  COUNTY,
 CONSISTENT WITH THE REAL PROPERTY LAW.
   4. "RESIDENTIAL REAL ESTATE" MEANS REAL PROPERTY LOCATED IN THIS STATE
 WHICH  IS USED PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES AND
 IS IMPROVED BY ONE TO FOUR DWELLING UNITS, INCLUDING CONDOMINIUM UNITS.
   5. "SERVICE PROVIDER" MEANS AN  INDIVIDUAL  OR  ENTITY  THAT  PROVIDES
 SERVICES TO A PERSON.
   6.  (A)  "UNFAIR  REAL ESTATE SERVICE AGREEMENT" MEANS ANY REAL ESTATE
 SERVICE AGREEMENT THAT IS NOT TO BE PERFORMED WITHIN ONE YEAR AFTER  THE
 TIME IT IS ENTERED INTO AND EITHER:
   (I) PURPORTS TO RUN WITH THE LAND OR TO BE BINDING ON FUTURE OWNERS OF
 INTERESTS IN THE REAL PROPERTY; OR
   (II)  ALLOWS  FOR  ASSIGNMENT  OF THE RIGHT TO PROVIDE SERVICE WITHOUT
 NOTICE TO AND CONSENT OF THE OWNER OF RESIDENTIAL REAL ESTATE; OR
   (III) PURPORTS TO CREATE A LIEN, ENCUMBRANCE, OR OTHER  REAL  PROPERTY
 SECURITY  INTEREST, OTHER THAN A MECHANICS LIEN PROPERLY ISSUED PURSUANT
 TO THE PROVISIONS OF THE LIEN LAW.
   (B) NOTWITHSTANDING THE FOREGOING, AN AGREEMENT SHALL NOT  BE  CONSID-
 ERED AN UNFAIR REAL ESTATE SERVICE AGREEMENT IF IT IS A VALID:
   (I)  HOME  WARRANTY OR SIMILAR PRODUCT THAT COVERS THE COST OF MAINTE-
 NANCE OF A MAJOR HOME SYSTEM FOR A FIXED PERIOD;
   (II) INSURANCE CONTRACT;
   (III) OPTION OR RIGHT OF REFUSAL  TO  PURCHASE  THE  RESIDENTIAL  REAL
 ESTATE;
   (IV)  DECLARATION CREATED IN THE FORMATION OF A COMMON INTEREST COMMU-
 NITY OR AN AMENDMENT THERETO;
   (V) MAINTENANCE OR REPAIR AGREEMENT ENTERED BY A  HOMEOWNERS'  ASSOCI-
 ATION IN A COMMON INTEREST COMMUNITY;
   (VI) MORTGAGE LOAN OR A COMMITMENT TO MAKE OR RECEIVE A MORTGAGE LOAN;
   (VII) SECURITY AGREEMENT UNDER THE UNIFORM COMMERCIAL CODE RELATING TO
 THE SALE OR RENTAL OF PERSONAL PROPERTY OR FIXTURES; OR
   (VIII)  CONTRACT WITH A WATER, SEWER, ELECTRICAL, TELEPHONE, CABLE, OR
 OTHER REGULATED UTILITY SERVICE PROVIDER.
   § 778-BBB. PROHIBITION AGAINST UNFAIR  SERVICE  AGREEMENTS;  RECORDING
 THEREOF. 1. NO UNFAIR REAL ESTATE SERVICE AGREEMENT SHALL BE ENFORCEABLE
 IN THE STATE.
   2.(A)  NO  PERSON  SHALL RECORD OR CAUSE TO BE RECORDED AN UNFAIR REAL
 ESTATE SERVICE AGREEMENT OR NOTICE OR MEMORANDUM THEREOF.
   (B) IF AN UNFAIR REAL ESTATE SERVICE AGREEMENT  IS  RECORDED  IN  THIS
 STATE,  IT  SHALL  NOT  PROVIDE ACTUAL OR CONSTRUCTIVE NOTICE AGAINST AN
 OTHERWISE BONA FIDE PURCHASER OR CREDITOR.
   (C) IF AN UNFAIR SERVICE AGREEMENT OR A NOTICE OR  MEMORANDUM  THEREOF
 IS  RECORDED,  ANY  PERSON WITH AN INTEREST IN THE REAL PROPERTY THAT IS
 THE SUBJECT OF THAT AGREEMENT MAY APPLY TO A COURT IN THE  COUNTY  WHERE
 THE  RECORDING  EXISTS  TO  RECORD A COURT ORDER DECLARING THE AGREEMENT
 UNENFORCEABLE.
   § 778-CCC. DECEPTIVE ACTS AND PRACTICES. ANY PERSON IN THIS STATE  WHO
 ENTERS  INTO  OR  CAUSES  A CONSUMER TO ENTER INTO AN UNFAIR REAL ESTATE
 SERVICE AGREEMENT SHALL BE CONSIDERED TO  HAVE  VIOLATED  SECTION  THREE
 HUNDRED FORTY-NINE OF THIS CHAPTER.
   § 778-DDD. ENFORCEMENT; ACTION BY THE ATTORNEY GENERAL. 1.(A) WHENEVER
 THE  ATTORNEY  GENERAL  SHALL  BELIEVE FROM EVIDENCE SATISFACTORY TO THE
 S. 6361                             3
 
 ATTORNEY GENERAL THAT ANY  PERSON  OR  AGENT  OR  EMPLOYEE  THEREOF  HAS
 ENGAGED  IN OR IS ABOUT TO ENGAGE IN ANY OF THE ACTS OR PRACTICES STATED
 TO BE UNLAWFUL PURSUANT TO THIS SECTION, THE ATTORNEY GENERAL MAY  BRING
 AN  ACTION  IN  THE NAME AND ON BEHALF OF THE PEOPLE OF THE STATE OF NEW
 YORK TO ENJOIN SUCH UNLAWFUL ACTS OR PRACTICES AND TO OBTAIN RESTITUTION
 OF ANY MONEYS OR PROPERTY OBTAINED DIRECTLY OR INDIRECTLY  BY  ANY  SUCH
 UNLAWFUL  ACTS  OR  PRACTICES.  IN SUCH ACTION PRELIMINARY RELIEF MAY BE
 GRANTED UNDER ARTICLE SIXTY-THREE OF THE CIVIL PRACTICE LAW AND RULES.
   (B) THE PROVISIONS OF THIS ARTICLE MAY BE ENFORCED CONCURRENTLY BY THE
 DIRECTOR OF A MUNICIPAL CONSUMER AFFAIRS OFFICE, OR BY THE  TOWN  ATTOR-
 NEY,  CITY  CORPORATION  COUNSEL,  OR OTHER LAWFUL DESIGNEE OF A MUNICI-
 PALITY OR LOCAL GOVERNMENT, AND ALL MONEYS COLLECTED THEREUNDER SHALL BE
 RETAINED BY SUCH MUNICIPALITY OR LOCAL GOVERNMENT.
   2. IN ADDITION TO THE RIGHT OF ACTION GRANTED TO THE ATTORNEY  GENERAL
 PURSUANT  TO  THIS SECTION, ANY PERSON WHO HAS BEEN INJURED BY REASON OF
 ANY VIOLATION OF THIS SECTION MAY BRING AN ACTION IN THEIR OWN  NAME  TO
 ENJOIN  SUCH  UNLAWFUL  ACT  OR  PRACTICE,  AN  ACTION TO RECOVER ACTUAL
 DAMAGES OR FIVE HUNDRED DOLLARS, WHICHEVER  IS  GREATER,  OR  BOTH  SUCH
 ACTIONS. THE COURT MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES
 TO  AN AMOUNT NOT TO EXCEED THREE TIMES THE ACTUAL DAMAGES, IF THE COURT
 FINDS THE DEFENDANT WILLFULLY OR KNOWINGLY VIOLATED  THIS  SECTION.  THE
 COURT MAY AWARD REASONABLE ATTORNEYS' FEES TO A PREVAILING PLAINTIFF.
   §  778-EEE. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE IS, FOR ANY
 REASON, DECLARED UNCONSTITUTIONAL OR INVALID, IN WHOLE OR  IN  PART,  BY
 ANY COURT OF COMPETENT JURISDICTION, SUCH PORTION SHALL BE DEEMED SEVER-
 ABLE,  AND  SUCH  UNCONSTITUTIONALITY OR INVALIDITY SHALL NOT AFFECT THE
 VALIDITY OF THE REMAINING PORTIONS  OF  THIS  ARTICLE,  WHICH  REMAINING
 PORTIONS SHALL CONTINUE IN FULL FORCE AND EFFECT.
   §  4.  This  act shall take effect on the ninetieth day after it shall
 have become a law.

co-Sponsors

2025-S6361A - Details

See Assembly Version of this Bill:: A5886
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add Art 36-E §§778-aaa - 778-eee, Gen Bus L

2025-S6361A - 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-S6361A - Sponsor Memo

                                 
BILL NUMBER: S6361A

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting
unfair residential real estate service agreements

 
PURPOSE:

To protect homeowners from deceptive or unfair real estate service
agreements that create unnecessary liens, encumbrances, or binding obli-
gations on residential real property.

 
SUMMARY OF PROVISIONS:

*Section 1: Provides the short title of the bill as the "Prohibition of
Unfair Real Estate Service Agreements Act."

*Section 2: States legislative intent to prohibit the use and recording
of unfair residential real estate service agreements to prevent fraud
and consumer harm.

*Section 3: Adds a new Article 36-E to the General Business Law:

*Defines terms such as "unfair real estate service agreements," "record-
ing," and "residential real estate."

*Prohibits agreements that bind future property owners, allow assignment
without owner consent, or create invalid liens or encumbrances.

*Declares that unfair agreements cannot be enforced or recorded, and
allows affected parties to seek court orders declaring such agreements
void.

*Designates such agreements as deceptive acts under § 349 of the General
Business Law.

*Grants enforcement authority to the attorney general and municipal
officials, and provides private right of action for injured parties.

*Section 4: Includes a severability clause to ensure remaining
provisions remain valid if parts of the act are deemed invalid.

*Section 5: Establishes the act's effective date as 90 days after becom-
ing law.

 
JUSTIFICATION:

Homeowners are increasingly targeted by predatory service providers who
use deceptive agreements to impose burdensome and hidden obligations on
residential properties. These agreements often:

*Purport to run with the land, unfairly binding future owners. *Create
invalid liens or encumbrances that cloud property titles.

*Allow assignment without homeowner consent, further complicating resol-
ution.

This legislation protects consumers by prohibiting these practices and
ensuring that any improperly recorded agreements are deemed unenforcea-
ble. it also provides legal remedies for affected parties and enforce-
ment mechanisms to deter such predatory actions.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

Minimal administrative costs anticipated for implementation and enforce-
ment.

 
EFFECTIVE DATE:
This act shall take effect on the 90th day after it becomes law.

2025-S6361A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6361--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 11, 2025
                                ___________
 
 Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Consumer  Protection  --
   committee  discharged,  bill amended, 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.
   § 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.
                                                            LBD05484-03-5

 S. 6361--A                          2
 
   1. "PERSON" MEANS A NATURAL PERSON, PARTNERSHIP, ASSOCIATION,  COOPER-
 ATIVE, CORPORATION, TRUST, OR OTHER LEGAL ENTITY.
   2.  "REAL  ESTATE  SERVICE  AGREEMENT"  MEANS A WRITTEN CONTRACT UNDER
 WHICH A PERSON AGREES TO PROVIDE SERVICES IN CONNECTION WITH THE MAINTE-
 NANCE OF OR PURCHASE OR SALE OF RESIDENTIAL REAL ESTATE.
   3. "RECORDING" MEANS PRESENTING A DOCUMENT  TO  A  RECORDING  OFFICER,
 WHETHER  THE  COUNTY  CLERK OF THE COUNTY OR THE REGISTER OF THE COUNTY,
 CONSISTENT WITH THE REAL PROPERTY LAW.
   4. "RESIDENTIAL REAL ESTATE" MEANS REAL PROPERTY LOCATED IN THIS STATE
 WHICH IS USED PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES  AND
 IS IMPROVED BY ONE TO FOUR DWELLING UNITS, INCLUDING CONDOMINIUM UNITS.
   5.  "SERVICE  PROVIDER"  MEANS  AN  INDIVIDUAL OR ENTITY THAT PROVIDES
 SERVICES TO A PERSON.
   6. (A) "UNFAIR REAL ESTATE SERVICE AGREEMENT" MEANS  ANY  REAL  ESTATE
 SERVICE AGREEMENT THAT IS NOT TO BE PERFORMED WITHIN TWO YEARS AFTER THE
 TIME IT IS ENTERED INTO AND EITHER:
   (I) PURPORTS TO RUN WITH THE LAND OR TO BE BINDING ON FUTURE OWNERS OF
 INTERESTS IN THE REAL PROPERTY; OR
   (II)  ALLOWS  FOR  ASSIGNMENT  OF THE RIGHT TO PROVIDE SERVICE WITHOUT
 NOTICE TO AND CONSENT OF THE OWNER OF RESIDENTIAL REAL ESTATE; OR
   (III) PURPORTS TO CREATE A LIEN, ENCUMBRANCE, OR OTHER  REAL  PROPERTY
 SECURITY  INTEREST, OTHER THAN A MECHANICS LIEN PROPERLY ISSUED PURSUANT
 TO THE PROVISIONS OF THE LIEN LAW.
   (B) NOTWITHSTANDING THE FOREGOING, AN AGREEMENT SHALL NOT  BE  CONSID-
 ERED AN UNFAIR REAL ESTATE SERVICE AGREEMENT IF IT IS A VALID:
   (I)  HOME  WARRANTY OR SIMILAR PRODUCT THAT COVERS THE COST OF MAINTE-
 NANCE OF A MAJOR HOME SYSTEM FOR A FIXED PERIOD;
   (II) INSURANCE CONTRACT;
   (III) OPTION OR RIGHT OF REFUSAL  TO  PURCHASE  THE  RESIDENTIAL  REAL
 ESTATE;
   (IV)  DECLARATION CREATED IN THE FORMATION OF A COMMON INTEREST COMMU-
 NITY OR AN AMENDMENT THERETO;
   (V) MAINTENANCE OR REPAIR AGREEMENT ENTERED BY A  HOMEOWNERS'  ASSOCI-
 ATION IN A COMMON INTEREST COMMUNITY;
   (VI) MORTGAGE LOAN OR A COMMITMENT TO MAKE OR RECEIVE A MORTGAGE LOAN;
   (VII) SECURITY AGREEMENT UNDER THE UNIFORM COMMERCIAL CODE RELATING TO
 THE SALE OR RENTAL OF PERSONAL PROPERTY OR FIXTURES; OR
   (VIII)  CONTRACT WITH A WATER, SEWER, ELECTRICAL, TELEPHONE, CABLE, OR
 OTHER REGULATED UTILITY SERVICE PROVIDER.
   § 778-BBB. PROHIBITION AGAINST UNFAIR  SERVICE  AGREEMENTS;  RECORDING
 THEREOF. 1. NO UNFAIR REAL ESTATE SERVICE AGREEMENT SHALL BE ENFORCEABLE
 IN THE STATE.
   2.(A)  NO  PERSON  SHALL RECORD OR CAUSE TO BE RECORDED AN UNFAIR REAL
 ESTATE SERVICE AGREEMENT OR NOTICE OR MEMORANDUM THEREOF.
   (B) IF AN UNFAIR REAL ESTATE SERVICE AGREEMENT  IS  RECORDED  IN  THIS
 STATE,  IT  SHALL  NOT  PROVIDE ACTUAL OR CONSTRUCTIVE NOTICE AGAINST AN
 OTHERWISE BONA FIDE PURCHASER OR CREDITOR.
   (C) IF AN UNFAIR SERVICE AGREEMENT OR A NOTICE OR  MEMORANDUM  THEREOF
 IS  RECORDED,  ANY  PERSON WITH AN INTEREST IN THE REAL PROPERTY THAT IS
 THE SUBJECT OF THAT AGREEMENT MAY APPLY TO A COURT IN THE  COUNTY  WHERE
 THE  RECORDING  EXISTS  TO  RECORD A COURT ORDER DECLARING THE AGREEMENT
 UNENFORCEABLE.
   § 778-CCC. DECEPTIVE ACTS AND PRACTICES. ANY PERSON IN THIS STATE  WHO
 ENTERS  INTO  OR  CAUSES  A CONSUMER TO ENTER INTO AN UNFAIR REAL ESTATE
 SERVICE AGREEMENT SHALL BE CONSIDERED TO  HAVE  VIOLATED  SECTION  THREE
 HUNDRED FORTY-NINE OF THIS CHAPTER.
 S. 6361--A                          3
 
   § 778-DDD. ENFORCEMENT; ACTION BY THE ATTORNEY GENERAL. 1.(A) WHENEVER
 THE  ATTORNEY  GENERAL  SHALL  BELIEVE FROM EVIDENCE SATISFACTORY TO THE
 ATTORNEY GENERAL THAT ANY  PERSON  OR  AGENT  OR  EMPLOYEE  THEREOF  HAS
 ENGAGED  IN OR IS ABOUT TO ENGAGE IN ANY OF THE ACTS OR PRACTICES STATED
 TO  BE UNLAWFUL PURSUANT TO THIS SECTION, THE ATTORNEY GENERAL MAY BRING
 AN ACTION IN THE NAME AND ON BEHALF OF THE PEOPLE OF THE  STATE  OF  NEW
 YORK TO ENJOIN SUCH UNLAWFUL ACTS OR PRACTICES AND TO OBTAIN RESTITUTION
 OF  ANY  MONEYS  OR PROPERTY OBTAINED DIRECTLY OR INDIRECTLY BY ANY SUCH
 UNLAWFUL ACTS OR PRACTICES. IN SUCH ACTION  PRELIMINARY  RELIEF  MAY  BE
 GRANTED UNDER ARTICLE SIXTY-THREE OF THE CIVIL PRACTICE LAW AND RULES.
   (B) THE PROVISIONS OF THIS ARTICLE MAY BE ENFORCED CONCURRENTLY BY THE
 DIRECTOR  OF  A MUNICIPAL CONSUMER AFFAIRS OFFICE, OR BY THE TOWN ATTOR-
 NEY, CITY CORPORATION COUNSEL, OR OTHER LAWFUL  DESIGNEE  OF  A  MUNICI-
 PALITY OR LOCAL GOVERNMENT, AND ALL MONEYS COLLECTED THEREUNDER SHALL BE
 RETAINED BY SUCH MUNICIPALITY OR LOCAL GOVERNMENT.
   2.  IN ADDITION TO THE RIGHT OF ACTION GRANTED TO THE ATTORNEY GENERAL
 PURSUANT TO THIS SECTION, ANY PERSON WHO HAS BEEN INJURED BY  REASON  OF
 ANY  VIOLATION  OF THIS SECTION MAY BRING AN ACTION IN THEIR OWN NAME TO
 ENJOIN SUCH UNLAWFUL ACT  OR  PRACTICE,  AN  ACTION  TO  RECOVER  ACTUAL
 DAMAGES  OR  FIVE  HUNDRED  DOLLARS,  WHICHEVER IS GREATER, OR BOTH SUCH
 ACTIONS. THE COURT MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES
 TO AN AMOUNT NOT TO EXCEED THREE TIMES THE ACTUAL DAMAGES, IF THE  COURT
 FINDS  THE  DEFENDANT  WILLFULLY OR KNOWINGLY VIOLATED THIS SECTION. THE
 COURT MAY AWARD REASONABLE ATTORNEYS' FEES TO A PREVAILING PLAINTIFF.
   § 778-EEE. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE IS, FOR  ANY
 REASON,  DECLARED  UNCONSTITUTIONAL  OR INVALID, IN WHOLE OR IN PART, BY
 ANY COURT OF COMPETENT JURISDICTION, SUCH PORTION SHALL BE DEEMED SEVER-
 ABLE, AND SUCH UNCONSTITUTIONALITY OR INVALIDITY SHALL  NOT  AFFECT  THE
 VALIDITY  OF  THE  REMAINING  PORTIONS  OF THIS ARTICLE, WHICH REMAINING
 PORTIONS SHALL CONTINUE IN FULL FORCE AND EFFECT.
   § 4. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

co-Sponsors

2025-S6361B (ACTIVE) - Details

See Assembly Version of this Bill:: A5886
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add Art 36-E §§778-aaa - 778-eee, Gen Bus L

2025-S6361B (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-S6361B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6361B

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting
unfair residential real estate service agreements

 
PURPOSE:

To protect homeowners from deceptive or unfair real estate service
agreements that create unnecessary liens, encumbrances, or binding obli-
gations on residential real property.

 
SUMMARY OF PROVISIONS:

*Section 1: Provides the short title of the bill as the "Prohibition of
Unfair Real Estate Service Agreements Act."

*Section 2: States legislative intent to prohibit the use and recording
of unfair residential real estate service agreements to prevent fraud
and consumer harm.

*Section 3: Adds a new Article 36-E to the General Business Law:

*Defines terms such as "unfair real estate service agreements," "record-
ing," and "residential real estate."

*Prohibits agreements that bind future property owners, allow assignment
without owner consent, or create invalid liens or encumbrances.

*Declares that unfair agreements cannot be enforced or recorded, and
allows affected parties to seek court orders declaring such agreements
void.

*Designates such agreements as deceptive acts under § 349 of the General
Business Law.

*Grants enforcement authority to the attorney general and municipal
officials, and provides private right of action for injured parties.

*Section 4: Includes a severability clause to ensure remaining
provisions remain valid if parts of the act are deemed invalid.

 
JUSTIFICATION:

Homeowners are increasingly targeted by predatory service providers who
use deceptive agreements to impose burdensome and hidden obligations on
residential properties. These agreements often purport to run with the
land, unfairly binding future owners; create invalid liens or encum-
brances that cloud property titles; and allow assignment without home-
owner consent, further complicating resolution.

This legislation protects consumers by prohibiting these practices and
ensuring that any improperly recorded agreements are deemed unenforcea-
ble. it also provides legal remedies for affected parties and enforce-
ment mechanisms to deter such predatory actions.

 
LEGISLATIVE HISTORY:
New bill.

 
FISCAL IMPLICATIONS:

Minimal administrative costs anticipated for implementation and enforce-
ment.

 
EFFECTIVE DATE:
This act shall take effect on the 90th day after it becomes law.

2025-S6361B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6361--B
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 11, 2025
                                ___________
 
 Introduced  by  Sens.  BAILEY, COMRIE -- read twice and ordered printed,
   and when  printed  to  be  committed  to  the  Committee  on  Consumer
   Protection -- committee discharged, bill amended, ordered reprinted as
   amended  and  recommitted  to  said committee -- committee discharged,
   bill amended, 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.
                                                            LBD05484-07-5
 S. 6361--B                          2

 
   §  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.
   2. "REAL ESTATE SERVICE AGREEMENT"  MEANS  A  WRITTEN  CONTRACT  UNDER
 WHICH A PERSON AGREES TO PROVIDE SERVICES IN CONNECTION WITH THE MAINTE-
 NANCE OF OR PURCHASE OR SALE OF RESIDENTIAL REAL ESTATE.
   3.  "RECORDING"  MEANS  PRESENTING  A DOCUMENT TO A RECORDING OFFICER,
 WHETHER THE COUNTY CLERK OF THE COUNTY OR THE REGISTER  OF  THE  COUNTY,
 CONSISTENT WITH THE REAL PROPERTY LAW.
   4. "RESIDENTIAL REAL ESTATE" MEANS REAL PROPERTY LOCATED IN THIS STATE
 WHICH  IS USED PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES AND
 IS IMPROVED BY ONE TO FOUR DWELLING UNITS, INCLUDING CONDOMINIUM UNITS.
   5. "SERVICE PROVIDER" MEANS AN  INDIVIDUAL  OR  ENTITY  THAT  PROVIDES
 SERVICES TO A PERSON.
   6.  (A)  "UNFAIR  REAL ESTATE SERVICE AGREEMENT" MEANS ANY REAL ESTATE
 SERVICE AGREEMENT THAT IS NOT TO BE PERFORMED WITHIN TWO YEARS AFTER THE
 TIME IT IS ENTERED INTO AND EITHER:
   (I) PURPORTS TO RUN WITH THE LAND OR TO BE BINDING ON FUTURE OWNERS OF
 INTERESTS IN THE REAL PROPERTY; OR
   (II) ALLOWS FOR ASSIGNMENT OF THE RIGHT  TO  PROVIDE  SERVICE  WITHOUT
 NOTICE TO AND CONSENT OF THE OWNER OF RESIDENTIAL REAL ESTATE; OR
   (III)  PURPORTS  TO CREATE A LIEN, ENCUMBRANCE, OR OTHER REAL PROPERTY
 SECURITY INTEREST, OTHER THAN A MECHANICS LIEN PROPERLY ISSUED  PURSUANT
 TO THE PROVISIONS OF THE LIEN LAW; OR
   (IV)  IS  A REAL ESTATE LISTING AGREEMENT AS DEFINED IN PARAGRAPH E OF
 SUBDIVISION ONE OF SECTION FOUR HUNDRED FORTY-THREE OF THE REAL PROPERTY
 LAW.
   (B) NOTWITHSTANDING THE FOREGOING, AN AGREEMENT SHALL NOT  BE  CONSID-
 ERED AN UNFAIR REAL ESTATE SERVICE AGREEMENT IF IT IS A VALID:
   (I)  HOME  WARRANTY OR SIMILAR PRODUCT THAT COVERS THE COST OF MAINTE-
 NANCE OF A MAJOR HOME SYSTEM FOR A FIXED PERIOD;
   (II) INSURANCE CONTRACT;
   (III) OPTION OR RIGHT OF REFUSAL  TO  PURCHASE  THE  RESIDENTIAL  REAL
 ESTATE;
   (IV)  DECLARATION CREATED IN THE FORMATION OF A COMMON INTEREST COMMU-
 NITY OR AN AMENDMENT THERETO;
   (V) MAINTENANCE OR REPAIR AGREEMENT ENTERED BY A  HOMEOWNERS'  ASSOCI-
 ATION IN A COMMON INTEREST COMMUNITY;
   (VI) MORTGAGE LOAN OR A COMMITMENT TO MAKE OR RECEIVE A MORTGAGE LOAN;
   (VII) SECURITY AGREEMENT UNDER THE UNIFORM COMMERCIAL CODE RELATING TO
 THE SALE OR RENTAL OF PERSONAL PROPERTY OR FIXTURES; OR
   (VIII)  CONTRACT WITH A WATER, SEWER, ELECTRICAL, TELEPHONE, CABLE, OR
 OTHER REGULATED UTILITY SERVICE PROVIDER.
   § 778-BBB. PROHIBITION AGAINST UNFAIR  SERVICE  AGREEMENTS;  RECORDING
 THEREOF. 1. NO UNFAIR REAL ESTATE SERVICE AGREEMENT SHALL BE ENFORCEABLE
 IN THE STATE.
   2.(A)  NO  PERSON  SHALL RECORD OR CAUSE TO BE RECORDED AN UNFAIR REAL
 ESTATE SERVICE AGREEMENT OR NOTICE OR MEMORANDUM THEREOF.
   (B) IF AN UNFAIR REAL ESTATE SERVICE AGREEMENT  IS  RECORDED  IN  THIS
 STATE,  IT  SHALL  NOT  PROVIDE ACTUAL OR CONSTRUCTIVE NOTICE AGAINST AN
 OTHERWISE BONA FIDE PURCHASER OR CREDITOR.
   (C) IF AN UNFAIR SERVICE AGREEMENT OR A NOTICE OR  MEMORANDUM  THEREOF
 IS  RECORDED,  ANY  PERSON WITH AN INTEREST IN THE REAL PROPERTY THAT IS
 THE SUBJECT OF THAT AGREEMENT MAY APPLY TO A COURT IN THE  COUNTY  WHERE
 S. 6361--B                          3
 
 THE  RECORDING  EXISTS  TO  RECORD A COURT ORDER DECLARING THE AGREEMENT
 UNENFORCEABLE.
   §  778-CCC. DECEPTIVE ACTS AND PRACTICES. ANY PERSON IN THIS STATE WHO
 ENTERS INTO OR CAUSES A CONSUMER TO ENTER INTO  AN  UNFAIR  REAL  ESTATE
 SERVICE  AGREEMENT  SHALL  BE  CONSIDERED TO HAVE VIOLATED SECTION THREE
 HUNDRED FORTY-NINE OF THIS CHAPTER.
   § 778-DDD. ENFORCEMENT; ACTION BY  THE  ATTORNEY  GENERAL.  WHERE  THE
 ATTORNEY  GENERAL  SHALL HAVE REASON TO BELIEVE THAT THERE IS AN ALLEGED
 VIOLATION OF THIS ARTICLE BASED UPON, AMONG  OTHER  THINGS,  A  CONSUMER
 REPORT OF AN ALLEGED VIOLATION, THE ATTORNEY GENERAL, IN THE NAME OF THE
 PEOPLE  OF  THE  STATE  OF  NEW  YORK, SHALL DISPATCH A CEASE AND DESIST
 LETTER TO THE ENTITY AT  ISSUE,  SPECIFYING  THE  ALLEGED  VIOLATION  OR
 VIOLATIONS   AND   THE  REMEDIES  TO  CURE  SUCH VIOLATION OR VIOLATIONS
 WITHIN A DESIGNATED TIMELINE. WHERE, AFTER  RECEIPT  OF  THE  CEASE  AND
 DESIST LETTER AND THE EXPIRATION OF SUCH DESIGNATED TIMELINE, THE ENTITY
 CONTINUES  TO VIOLATE THE PROVISIONS OF THIS ARTICLE, AN APPLICATION MAY
 BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF  THE  STATE
 OF  NEW  YORK  TO  A COURT OR JUSTICE HAVING   JURISDICTION BY A SPECIAL
 PROCEEDING TO ISSUE AN INJUNCTION, AND UPON NOTICE TO THE RESPONDENT  OF
 NOT  LESS  THAN  FIVE DAYS, TO ENJOIN  AND RESTRAIN  THE  CONTINUANCE OF
 SUCH VIOLATION OR VIOLATIONS; AND IF IT SHALL APPEAR TO THE SATISFACTION
 OF THE COURT OR JUSTICE THAT  THE  RESPONDENT   HAS, IN  FACT,  VIOLATED
 THIS  ARTICLE,  AN  INJUNCTION  MAY  BE ISSUED BY SUCH COURT OR JUSTICE,
 ENJOINING AND RESTRAINING ANY FURTHER VIOLATION, WITHOUT REQUIRING PROOF
 THAT ANY PERSON HAS, IN FACT, BEEN INJURED OR DAMAGED THEREBY.  WHENEVER
 THE COURT SHALL DETERMINE THAT A VIOLATION OF THIS ARTICLE HAS OCCURRED,
 THE COURT MAY IMPOSE A CIVIL PENALTY  OF  NOT  MORE  THAN  ONE  THOUSAND
 DOLLARS FOR EACH VIOLATION. THIS SECTION SHALL NOT BE CONSTRUED TO LIMIT
 ANY  OTHER  CRIMINAL  OR  CIVIL  LIABILITY SUCH ENTITY MAY BE SUBJECT TO
 UNDER LAW.
   § 778-EEE. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE IS, FOR  ANY
 REASON,  DECLARED  UNCONSTITUTIONAL  OR INVALID, IN WHOLE OR IN PART, BY
 ANY COURT OF COMPETENT JURISDICTION, SUCH PORTION SHALL BE DEEMED SEVER-
 ABLE, AND SUCH UNCONSTITUTIONALITY OR INVALIDITY SHALL  NOT  AFFECT  THE
 VALIDITY  OF  THE  REMAINING  PORTIONS  OF THIS ARTICLE, WHICH REMAINING
 PORTIONS SHALL CONTINUE IN FULL FORCE AND EFFECT.
   § 4. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

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Senate Bill S6361B

Sponsored By

Current Bill Status - In Senate Committee Consumer Protection Committee

Bill Amendments

2025-S6361 - Details

2025-S6361 - Summary

2025-S6361 - Sponsor Memo

2025-S6361 - Bill Text download pdf

co-Sponsors

2025-S6361A - Details

2025-S6361A - Summary

2025-S6361A - Sponsor Memo

2025-S6361A - Bill Text download pdf

co-Sponsors

2025-S6361B (ACTIVE) - Details

2025-S6361B (ACTIVE) - Summary

2025-S6361B (ACTIVE) - Sponsor Memo

2025-S6361B (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6361B

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Sponsored By

Jamaal T. Bailey

Current Bill Status - In Senate Committee Consumer Protection Committee

Bill Amendments

2025-S6361 - Details

2025-S6361 - Summary

2025-S6361 - Sponsor Memo

2025-S6361 - Bill Text download pdf

co-Sponsors

Leroy Comrie

2025-S6361A - Details

2025-S6361A - Summary

2025-S6361A - Sponsor Memo

2025-S6361A - Bill Text download pdf

co-Sponsors

Leroy Comrie

2025-S6361B (ACTIVE) - Details

2025-S6361B (ACTIVE) - Summary

2025-S6361B (ACTIVE) - Sponsor Memo

2025-S6361B (ACTIVE) - Bill Text download pdf

Comments