Bill Text: NJ S1817 | 2026-2027 | Regular Session | Introduced
Bill Title: Prohibits use or recording of service agreements under certain circumstances.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-01-13 - Introduced in the Senate, Referred to Senate Commerce Committee [S1817 Detail]
Download: New_Jersey-2026-S1817-Introduced.html
STATE OF NEW JERSEY
222nd LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Prohibits use or recording of service agreements under certain circumstances.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning certain service agreements and supplementing P.L.2011, c.217 (C.46:26A-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Person" means a natural person, partnership, association, cooperative, corporation, trust, or other legal entity.
"Recording" means presenting a document to a county recording officer in this State for official placement in the public land records.
"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.
"Service agreement" means a contract under which a person agrees to provide services in connection with the maintenance of or purchase or sale of residential real estate.
"Service provider" means an individual or entity that provides services to a person.
2. A service agreement shall be unlawful pursuant to P.L.1960, c.39 (C.56:8-1 et seq.) if any part of the service subject to the agreement is not to be performed within one year after the time it is entered into and if the service agreement:
a. purports to run with the land or to be binding on future owners of interests in the real property;
b. allows for assignment of the right to provide services without notice to and consent of the owner of residential real estate; or
c. purports to create a lien, encumbrance, or other real property security interest.
3. a. No person shall record or cause to be recorded an unlawful service agreement or notice or memorandum thereof in this State. To record or cause to be recorded an unlawful service agreement or notice or memorandum shall be a crime of the fourth degree.
b. A county recording officer may refuse to accept for recordation an unlawful service agreement.
c. If an unlawful service agreement is recorded in the State, it shall not provide actual or constructive notice against an otherwise bona find purchaser or creditor.
4. If an unlawful service agreement or a notice or memorandum thereof is recorded in New Jersey, any person with an interest in the real property that is the subject of that agreement may:
a. file a complaint with any court of competent jurisdiction in the county where the recording exists to enter a court order declaring the agreement unenforceable; and
b. recover actual damages, costs, and attorney's fees as may be proven against the service provider who recorded the agreement.
5. a. The following shall be exempt from the provisions of this act:
(1) a home warranty or similar product that covers the cost of maintenance of a major home system, including, but not limited to, plumbing, electrical wiring, and heating, ventilation, and air conditioning, for a fixed period;
(2) an insurance contract;
(3) an option or right to refusal to purchase the residential real estate;
(4) a declaration created in the formation of a common interest community or an amendment thereto;
(5) a maintenance or repair agreement entered by a homeowners' association in a common interest community;
(6) a mortgage loan or a commitment to make or receive a mortgage loan;
(7) a security agreement under the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.), relating to the sale or rental of personal property or fixtures; or
(8) water, sewer, electrical, telephone, cable, or other regulated utility service providers.
b. This act shall not impair the rights granted by a mechanics lien pursuant to P.L.1951, c.344 (C.2A:44-125 et seq.).
6. This act shall take effect immediately and shall be applicable to service agreements that are executed or renewed on or after the date of enactment.
STATEMENT
This bill makes unlawful and deceptive service agreements if any part of the service subject to the agreement is not to be performed within one year after the time it is entered into and if the service agreement: (1) purports to run with the land or to be binding on future owners of interests in the real property; (2) allows for assignment of the right to provide services without notice to and consent of the owner of residential real estate; or (3) purports to create a lien, encumbrance, or other real property security interest. "Service agreement" is defined in the bill to mean a contract under which a person agrees to provide services in connection with the maintenance of or purchase or sale of residential real estate.
In the bill, no person is to record or cause to be recorded an unlawful service agreement or notice or memorandum thereof in New Jersey. To record or cause to be recorded an unlawful service agreement or notice of memorandum shall be a Class A misdemeanor. A county recording officer may also refuse to accept for recordation an unlawful service agreement. If an unlawful service agreement is recorded in the New Jersey, it is not provide actual or constructive notice against an otherwise bona find purchaser or creditor. If an unlawful service agreement or a notice or memorandum thereof is recorded in New Jersey, any person with an interest in the real property that is the subject of that agreement may: (1) file a complaint with any court of competent jurisdiction in the county where the recording exists to enter a court order declaring the agreement unenforceable; and (2) recover actual damages, costs, and attorney's fees as may be proven against the service provider who recorded the agreement.
The bill has several exemptions from its provisions. This includes a home warranty or similar item for maintenance of a major component, such as plumbing and HVAC; a maintenance or repair agreement entered by a homeowners' association in a common interest community; and a mortgage loan or a commitment to make or receive a mortgage loan. The bill is also not to impair the rights granted by a mechanics lien.
The bill is intended to prohibit service agreements that are unlawful to an owner or a future owner of residential real estate. The prohibition is also intended to keep public records free from these agreements and subsequently, burdening future owners of real estate by getting the agreement removed from a chain of title. If a burden exists, remedies are presented through the bill, which also deter any drafting or subsequent recording of these service agreements.
