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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
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Strike out indicates matter stricken from the bill by amendment or deleted from the law by
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*sb0814*
SENATE BILL 814
N1, C3 6lr3406
CF 6lr3665
By: Senator Hayes
Introduced and read first time: February 6, 2026
Assigned to: Judicial Proceedings
Committee Report: Favorable
Senate action: Adopted
Read second time: March 3, 2026
CHAPTER ______
AN ACT concerning 1
Residential Property – Service Agreement – Defunct Service Providers 2
FOR the purpose of voiding certain service agreements for residential property entered into 3
before a certain date if the service provider is considered not in good standing with 4
the State Department of Assessment s and Taxation on or after a certain date ; and 5
generally relating to residential property and service agreements with defunct 6
service providers. 7
BY repealing and reenacting, without amendments, 8
Article – Real Property 9
Section 14–901(a) and (d) and 14–903 10
Annotated Code of Maryland 11
(2023 Replacement Volume and 2025 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Real Property 14
Section 14–902(a) 15
Annotated Code of Maryland 16
(2023 Replacement Volume and 2025 Supplement) 17
BY adding to 18
Article – Real Property 19
Section 14–903.1 20
Annotated Code of Maryland 21
(2023 Replacement Volume and 2025 Supplement) 22
2 SENATE BILL 814
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Real Property 3
14–901. 4
(a) In this subtitle the following words have the meanings indicated. 5
(d) (1) “Service agreement” means an agreement where a service provider 6
agrees to provide an individual services for: 7
(i) The maintenance of residential property that the individual 8
owns; or 9
(ii) The purchase or sale of residential property. 10
(2) “Service agreement” includes any memorandum, notice, agreement, or 11
similar document that is used by a service provider to cause a service agreement to be 12
recorded. 13
14–902. 14
(a) [This] EXCEPT AS PROVIDED IN § 14–903.1 OF THIS SUBTITLE , THIS 15
subtitle applies only to a service agreement entered into on or after June 1, 2023. 16
14–903. 17
A service agreement, or any part of a service agreement, may not: 18
(1) Be effective for more than 1 year; or 19
(2) (i) Purport to run with the land or bind subsequent bona fide 20
purchasers; 21
(ii) Purport to create a lien, encumbrance, or security interest on the 22
residential property of a party to the service agreement; or 23
(iii) Allow the service provider to assign or transfer the right to 24
provide servic es under the service agreement to another person without notice or the 25
consent of a party to the service agreement. 26
14–903.1. 27
(A) THIS SECTION APPLIES ONLY TO A SERVICE AG REEMENT WITH A 28
SERVICE PROVIDER THAT HAS FORFEITED THE RIGHT OF THE SERVICE PROVI DER 29
SENATE BILL 814 3
TO CONDUCT BUSINESS IN THE STATE AND, ON OR AFTER JUNE 1, 2026, IS DEFUNCT 1
AND CONSIDERED NOT I N GOOD STANDING WITH THE STATE DEPARTMENT OF 2
ASSESSMENTS AND TAXATION. 3
(B) A SERVICE AGREEMENT , OR ANY PART OF A SERVICE AGREEMENT , 4
ENTERED INTO BEFORE JUNE 1, 2023, MAY NOT: 5
(1) BE EFFECTIVE FOR MORE THAN 2 YEARS; OR 6
(2) (I) PURPORT TO RUN WITH T HE LAND OR BIND SUBS EQUENT 7
BONA FIDE PURCHASERS; 8
(II) PURPORT TO CREATE A LIEN, ENCUMBRANCE, OR SECURITY 9
INTEREST ON THE RESI DENTIAL PROPERTY OF A PARTY TO THE SERVICE 10
AGREEMENT; OR 11
(III) ALLOW THE SERVICE PRO VIDER TO ASSIGN OR T RANSFER 12
THE RIGHT TO PROVIDE SERVICES UNDER THE SERVICE AGREEMENT TO ANOTHER 13
PERSON WITHOUT NOTIC E OR THE CONSENT OF A PARTY TO THE SERVI CE 14
AGREEMENT. 15
(C) A SERVICE AGREEMENT, OR ANY PART OF A SERVICE AGREEMENT, THAT 16
VIOLATES SUBSECTION (B) OF THIS SECTION SHAL L BE CONSIDERED VOID AND 17
UNENFORCEABLE. 18
(D) (1) IF A SERVICE AGREEMEN T THAT VIOLATES SUBSECTION (B) OF 19
THIS SECTION IS RECORDED, ANY PERSON WITH AN INTEREST IN THE RESIDENTIAL 20
PROPERTY THAT IS SUB JECT TO A LIEN ARISI NG FROM THE SERVICE AGREEMENT 21
MAY BRING AN ACTION AGAINST THE SERVICE PROVIDER IN THE CIRCUIT COURT OF 22
THE COUNTY WHERE THE RESIDENTIAL PROPERTY IS LOCATED TO REQUES T A 23
DETERMINATION THAT THE SERVICE AGREEMEN T IS VOID AND UNENFO RCEABLE 24
UNDER THIS SUBTITLE. 25
(2) A PERSON WHO BRINGS AN ACTION UNDER THIS SUBSECTION MAY 26
SEEK: 27
(I) COMPENSATORY DAMAGES; AND 28
(II) REASONABLE ATTORNEY’S FEES AND COSTS. 29
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 30
1, 2026. 31