1. (1) A service agreement is unfair pursuant to this chapter if any part of the agreement provides an exclusive right to a service provider for a term in excess of one (1) year after the time it is entered into and has any of the following characteristics:

   1. (a) The service agreement purports to run with the land or to be binding on future owners of interests in the real property;
   2. (b) The service agreement allows for assignment of the right to provide service without notice to and consent of the owner of residential real property; or
   3. (c) The service agreement is recorded or purports to create a lien, encumbrance, or other real property security interest.

2. (2) The following are not unfair service agreements pursuant to this chapter:

   1. (a) A home warranty or similar product that covers the cost of maintenance of a major home system or appliance for a fixed period;
   2. (b) An insurance contract;
   3. (c) A mortgage loan or a commitment to make or receive a mortgage loan;
   4. (d) An option or right of refusal to purchase the residential real property;
   5. (e) A declaration of any covenants, conditions, or restrictions created in the formation of a homeowners association, a group of condominium owners, or other common interest community or an amendment thereto;
   6. (f) A maintenance or service agreement entered by a homeowners association in a common interest community;
   7. (g) A security agreement governed by Idaho’s uniform commercial code relating to the sale or rental of personal property or fixtures;
   8. (h) A contract with a gas, water, sewer, electrical, telephone, cable, or other utility service provider; or
   9. (i) A contract for the provision of water to real property for domestic, irrigation, or other purposes.
3. (3) This chapter does not impair any lien right granted pursuant to Idaho Code or judicially imposed.

[48-2003, added 2023, ch. 242, sec. 1, p. 741.]