(9) An agreement regarding residential real estate that is to be in effect for greater than one year and either expressly or impliedly purports to do any of the following is unenforceable and is considered to be done in bad faith, and a licensee involved in such an agreement is subject to disciplinary action by the commission:
(a) the agreement runs with the land or binds future owners or heirs of the residential real estate;
(b) the agreement allows for assignment of the right to provide service without notice to and consent of the owner of residential real estate; or
(c) the agreement creates a lien, encumbrance, or other real property security interest, or is otherwise recorded.
(10) The following are not prohibited by subsection (9) and remain enforceable:
(a) a home warranty or other type of similar product that covers the cost of maintenance of a major housing system, such as plumbing or electrical wiring, for a fixed period;
(b) an insurance contract;
(c) an option or right of refusal to purchase the residential real estate;
(d) a declaration created in the formation of a homeowners association or similar organization;
(e) a maintenance or repair agreement entered by a homeowners association or similar organization;
(f) a mortgage loan or a commitment to make or receive a mortgage loan;
(g) a security agreement under the Uniform Commercial Code relating to the sale or rental of personal property or fixtures; or
(h) water, sewer, electrical, telephone, cable, or other regulated utility service providers.
SCR220 does not fit these parameters aimed at preventing NTRAPS springing decades long listing agreements harming unsuspecting owners.
Posted by: Byron King on 9/29/26 (This information is only accurate as of 9/29/26. You must contact SCR for updates and changes to this information after 9/29/26, as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org
This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.