1. (a) This section applies only to a service agreement with a service provider that has forfeited the right of the service provider to conduct business in the State and, on or after June 1, 2026, is defunct and considered not in good standing with the State Department of Assessments and Taxation.

2. (b) A service agreement, or any part of a service agreement, entered into before June 1, 2023, may not:

   1. (1) Be effective for more than 2 years; or

   2. (2)

      1. (i) Purport to run with the land or bind subsequent bona fide purchasers;
      2. (ii) Purport to create a lien, encumbrance, or security interest on the residential property of a party to the service agreement; or
      3. (iii) Allow the service provider to assign or transfer the right to provide services under the service agreement to another person without notice or the consent of a party to the service agreement.
3. (c) A service agreement, or any part of a service agreement, that violates subsection (b) of this section shall be considered void and unenforceable.

4. (d)

   1. (1) If a service agreement that violates subsection (b) of this section is recorded, any person with an interest in the residential property that is subject to a lien arising from the service agreement may bring an action against the service provider in the circuit court of the county where the residential property is located to request a determination that the service agreement is void and unenforceable under this subtitle.

   2. (2) A person who brings an action under this subsection may seek:

      1. (i) Compensatory damages; and
      2. (ii) Reasonable attorney's fees and costs.

Added by Acts 2026, c. 738, § 1, eff. June 1, 2026.