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ENGR. H. B. NO. 1177 Page 1
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ENGROSSED HOUSE
BILL NO. 1177 By: Stark of the House
and
Reinhardt of the Senate
An Act relating to the Prohibition of Unfair Service
Agreements Act; amending Section 5, Chapter 148,
O.S.L. 2024 (16 O.S. Supp. 2024, Section 305), which
relates to prohibiting the recording of unfair
service agreements; authorizing the refusal of
certain notice and memorandum; providing exemption
from liability under certain circumstances; adding
notices and memorandums to actual or constructive
notice provision; making unfair service agreements,
notices, and memorandums void when recorded; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 5, Chapter 148, O.S.L.
2024 (16 O.S. Supp. 2024, Section 305), is amended to read as
follows:
Section 305. 1. Recording an unfair service agreement is
prohibited. No person shall record or cause to be recorded an
unfair service agreement or notice or memorandum thereof in this
state;
2. A county clerk's office shall refuse to accept for
recordation an unfair service agreement or notice or memorandum;
ENGR. H. B. NO. 1177 Page 2
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3. In the event that a county clerk does accidentally record an
unfair service agreement or notice or memorandum, the county clerk
shall incur no liability for doing so; and
4. If an unfair service agreement or notice or memorandum is
recorded in this state, it shall not provide actual or constructive
notice against an otherwise bona fide purchaser or, creditor, or
title company; and
5. If an unfair service agreement or notice or memorandum is
recorded in this state it shall be considered void.
SECTION 2. This act shall become effective November 1, 2025.
Passed the House of Representatives the 24th day of March, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the _____ day of __________, 2025.
Presiding Officer of the Senate