Maryland voids some old home service agreements with defunct providers

Certain older service agreements with qualifying defunct providers are void and cannot be enforced. The rule covers agreements made before June 1, 2023, for maintaining residential property or buying or selling it. The provider must have forfeited its right to do business in Maryland and be defunct and not in good standing with the State Department of Assessments and Taxation on or after June 1, 2026. The agreement violates the limits by lasting more than two years, claiming to bind later good-faith buyers, placing a lien or similar burden on the property, or allowing service rights to transfer without notice or a party's consent. The law took effect June 1, 2026. The provider must be defunct and not in good standing on or after that date.

A person with an interest in property subject to a lien from a violating recorded agreement may ask a court to declare the agreement void. This court option applies to a person with an interest in residential property subject to a lien arising from the recorded agreement. The case must be brought in the circuit court for the county where the property is located. The person may seek compensation and reasonable attorney fees and costs.