Consumer Protection - As enacted, enacts the "Real Property Records Integrity Act." - Amends TCA Title 47, Chapter 18 and Title 66.
Companion bill has been assigned Public Chapter Number 160 by the Secretary of State.
  • Bill History
  • Amendments
  • Video
  • Summary
  • Fiscal Note
  • Votes
  • Actions For HB1182Date
    Comp. became Pub. Ch. 16004/25/2023
    Sponsor(s) Added.03/30/2023
    Comp. SB subst.03/30/2023
    H. Placed on Regular Calendar for 3/30/202303/27/2023
    Reset on Regular Cal. for 3/30/2303/27/2023
    Sponsor(s) Added.03/27/2023
    H. Placed on Regular Calendar for 3/27/202303/23/2023
    Placed on cal. Calendar & Rules Committee for 3/23/202303/22/2023
    Rec. for pass. if am., ref. to Calendar & Rules Committee03/21/2023
    Placed on cal. Commerce Committee for 3/21/202303/15/2023
    Rec for pass if am by s/c ref. to Commerce Committee03/14/2023
    Placed on s/c cal Business & Utilities Subcommittee for 3/14/202303/08/2023
    Action Def. in s/c Business & Utilities Subcommittee to 3/14/202303/07/2023
    Placed on s/c cal Business & Utilities Subcommittee for 3/7/202303/01/2023
    Action Def. in s/c Business & Utilities Subcommittee to 3/7/202302/21/2023
    Placed on s/c cal Business & Utilities Subcommittee for 2/21/202302/15/2023
    Assigned to s/c Business & Utilities Subcommittee02/08/2023
    P2C, ref. to Commerce Committee02/02/2023
    Intro., P1C.02/01/2023
    Filed for introduction01/31/2023
    Actions For SB0368Date
    Effective date(s) 04/17/202304/25/2023
    Pub. Ch. 16004/25/2023
    Signed by Governor.04/17/2023
    Transmitted to Governor for action.04/05/2023
    Signed by H. Speaker04/05/2023
    Signed by Senate Speaker04/03/2023
    Enrolled and ready for signatures04/03/2023
    Passed H., Ayes 92, Nays 0, PNV 003/30/2023
    Am. withdrawn. (Amendment 1 - HA0198)03/30/2023
    Subst. for comp. HB.03/30/2023
    Engrossed; ready for transmission to House03/30/2023
    Passed Senate as amended, Ayes 31, Nays 003/30/2023
    Senate adopted Amendment (Amendment 1 - SA0286)03/30/2023
    Placed on Senate Regular Calendar for 3/30/202303/28/2023
    Placed on Senate Regular Calendar for 3/27/202303/24/2023
    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 0 PNV 003/21/2023
    Placed on Senate Commerce and Labor Committee calendar for 3/21/202303/20/2023
    Action deferred in Senate Commerce and Labor Committee to 3/21/202303/20/2023
    Placed on Senate Commerce and Labor Committee calendar for 3/20/202303/14/2023
    Action deferred in Senate Commerce and Labor Committee to 3/21/202303/14/2023
    Placed on Senate Commerce and Labor Committee calendar for 3/14/202303/07/2023
    Passed on Second Consideration, refer to Senate Commerce and Labor Committee01/25/2023
    Introduced, Passed on First Consideration01/24/2023
    Filed for introduction01/23/2023
  • AmendmentsFiscal Memos
    HA0198Amendment 1-0 to HB1182Fiscal Memo for HA0198 (5062)  
    AmendmentsFiscal Memos
    SA0286Amendment 1-1 to SB0368Fiscal Memo for SA0286 (5062)  

    NOTE: Each fiscal memorandum applies only to the amendment(s) identified in the memorandum. The fiscal memorandum must be matched to any amendments that have been adopted.

  • Videos containing keyword: HB1182

  • Fiscal Summary

    NOT SIGNIFICANT


    Bill Summary

    This bill enacts the "Prohibition of Unfair Service Agreements Act," which deems 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 agreement") to be deemed unfair, and thereby unenforceable, if any part of the service is not to be performed within one year after the time the agreement is entered into and the service agreement has at least one of the following characteristics:

    (1) It purports to run with the land or to be binding on future owners of interests in the real property;

    (2) It allows for assignment of the right to provide service without notice to, and consent of, the owner; or

    (3) It purports to create a lien, encumbrance, or other real property security interest.

    APPLICABILITY

    This bill does not apply to the following:

    (1) A home warranty or similar product that covers the cost of maintenance of a major home system, including plumbing, HVAC, and electrical, for a fixed period;

    (2) An insurance contract;

    (3) An option or right of refusal to purchase the residential real estate;

    (4) A declaration created in the formation of a common interest community or an amendment to the declaration;

    (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 Uniform Commercial Code, relating to the sale or rental of personal property or fixtures; or

    (8) Water, sewer, electrical, telephone, cable, or other regulated utility service providers.

    Additionally, this bill does not impair the rights granted or applied to mechanics' and materialmen's liens.

    RECORDING

    This bill prohibits a service provider from recording, or causing to be recorded, an unfair service agreement, or notice or memorandum of the agreement. A provider who violates this provision is liable to an affected party for $10,000 in statutory damages. Additionally, this bill clarifies that a recorded unfair service agreement does not provide actual or constructive notice against an otherwise bona fide purchaser or creditor.

    This bill authorizes a register in this state to refuse to accept for recordation an unfair service agreement and provides that the register is not liable for mistakenly recording such an agreement.

    REMEDIES

    If an unfair service agreement, or a notice or memorandum, is recorded, then this bill authorizes a person with an interest in the real property that is the subject of that agreement to do the following:

    (1) Apply to a court of competent jurisdiction in the county where the recording exists to record a court order declaring the agreement unenforceable; and

    (2) Recover, in addition to certain statutory damages, actual damages, court costs, and attorney's fees. The person also has all rights and remedies as those found in the Consumer Protection Act of 1977.

    Additionally, this bill authorizes the attorney general to enforce its provisions.

    ON MARCH 30, 2023, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 368, AS AMENDED.

    AMENDMENT #1 replaces this bill's prohibitions against unfair service agreements with a prohibition against recording certain service agreements and enforcing such service agreements. Specifically, this amendment:

    (1) Renames this bill the “Real Property Records Integrity Act”;

    (2) Redefines “recording” to mean presenting a document to a county register in this state for official placement in the public land records, rather than presenting it to a county recorder. This amendment also redefines “service agreement” to encompass a contract pursuant to which a person agrees to provide services in connection with the sale of residential real estate or the sale of any product or the performance of any personal service on or for the maintenance of residential real estate, rather than just the maintenance or sale of the residential real estate and updates the definition of a “service provider” to include a person who provides products to a consumer as well as services;

    (3) Removes the list of characteristics for which a service agreement would be deemed unfair, and instead provides that a recorded service agreement is void and unenforceable under this bill if the 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 the consent of the owner of residential real estate; or

    (C) Purports to create a lien, encumbrance, or other real property security interest;

    (4) Clarifies that this bill does not impair:

    (A) The furnishing of a loan or other thing of value to be secured by real property as otherwise provided by law;

    (B) An agreement entered into by a nonprofit, mandatory membership organization comprised of owners of homes, condominiums, cooperatives, or manufactured homes; or

    (C) Any interest in real property created pursuant to a declaration, covenant, or other applicable law, pertaining to the oversight or management of real property; and

    (5) Prohibits a service provider from recording or causing to be recorded a service agreement or notice or memorandum of the agreement in this state.

  • FiscalNote for HB1182/SB0368 filed under SB0368
  • House Floor and Committee Votes

    House moved to substitute and conform to SB0368

    SB0368 by Niceley - FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 3/30/2023
    Passed
              Ayes...............................................92
              Noes................................................0

              Representatives voting aye were: Alexander, Barrett, Baum, Beck, Boyd, Bricken, Burkhart, Butler, Campbell S, Camper, Capley, Carr, Carringer, Cepicky, Chism, Clemmons, Cochran, Crawford, Davis, Dixie, Doggett, Eldridge, Faison, Farmer, Freeman, Fritts, Garrett, Gillespie, Glynn, Grills, Hakeem, Hale, Hardaway, Harris, Haston, Hazlewood, Helton-Haynes, Hemmer, Hicks G, Hicks T, Holsclaw, Howell, Hulsey, Hurt, Jernigan, Johnson C, Johnson G, Jones, Keisling, Kumar, Lafferty, Lamberth, Leatherwood, Littleton, Love, Lynn, Marsh, Martin B, McCalmon, McKenzie, Miller, Mitchell, Moody, Moon, Parkinson, Pearson, Powell, Powers, Ragan, Raper, Reedy, Richey, Rudd, Rudder, Russell, Shaw, Sherrell, Slater, Sparks, Stevens, Terry, Thompson, Todd, Towns, Vaughan, Vital, Warner, White, Whitson, Williams, Zachary, Mr. Speaker Sexton -- 92.

              HB1182 by Garrett - HOUSE CALENDAR & RULES COMMITTEE:
    H. Placed on Regular Calendar for 3/27/2023 3/23/2023
              Voice Vote - Ayes Prevail

              HB1182 by Garrett - HOUSE COMMERCE COMMITTEE:
    Rec. for pass. if am., ref. to Calendar & Rules Committee 3/21/2023
              Voice Vote - Ayes Prevail

              HB1182 by Garrett - HOUSE BUSINESS AND UTILITIES SUBCOMMITTEE:
    Rec for pass if am by s/c ref. to Commerce Committee 3/14/2023
              Voice Vote - Ayes Prevail

    Senate Floor and Committee Votes

    SB0368 by Niceley - FLOOR VOTE: as Amended Third Consideration 3/30/2023
    Passed
              Ayes...............................................31
              Noes................................................0

              Senators voting aye were: Akbari, Bailey, Bowling, Briggs, Campbell, Crowe, Haile, Hensley, Jackson, Johnson, Kyle, Lamar, Lowe, Lundberg, Niceley, Oliver, Pody, Powers, Reeves, Roberts, Rose, Southerland, Stevens, Swann, Taylor, Walley, Watson, White, Yager, Yarbro, Mr. Speaker McNally -- 31.

    SB0368 by Niceley - SENATE COMMERCE AND LABOR COMMITTEE:
    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 0 PNV 0 3/21/2023
    Passed
              Ayes................................................9
              Noes................................................0

              Senators voting aye were: Akbari, Bailey, Johnson, Niceley, Reeves, Southerland, Swann, Watson, Yager -- 9.