Unfair Real Estate Agreements/HB 422

House Bill 422 (Session Law 2023-117), prohibiting “unfair real estate agreements”, was signed into law on August 24th. The Act also voids any such agreements that get recorded. They are not a lien on real property and the owner is not required to record a document voiding the agreement.

While the Act provides strong legal protection for homeowners and for the public real estate records, it is imperative to keep in mind that the Act is prospective and only affects agreements dated on and after August 24, 2023. Unfortunately, for those homeowners who signed agreements prior to the date the Act was enacted, the Act does not void these agreements.