Sec. 15. Characteristics of unfair service agreements.

267 words·~1 min read·/il/chapter-765/act-175/15

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A service agreement is unfair under this Act if any part of the service subject to the agreement is not to be performed within one year after the service agreement is entered into and the service agreement has any of the following characteristics:

(1)the service agreement purports to run with the land or to be binding on future

owners of interests in the real property;

(2)the service agreement allows for assignment of the right to provide service without

notice to and consent of the owner of residential real estate; or

(3)the service agreement purports to create a lien, encumbrance, or other real property

security interest.

(b)This Act does not apply to:

(1)a home warranty or similar product that covers the cost of maintenance of a major

home system, including plumbing, heating, ventilation, air conditioning, or electrical wiring, for a fixed period;

(2)an insurance contract;

(3)an option or right of refusal to purchase the residential real estate;

(4)a declaration created in the formation of a common interest community or an

amendment to the declaration;

(5)a maintenance or repair agreement entered into by a homeowners' association in a

common interest community;

(6)a mortgage loan or a commitment to make or receive a mortgage loan;

(7)a security agreement under the Uniform Commercial Code relating to the sale or

rental of personal property or fixtures; or

(8)water, sewer, electrical, telephone, cable, or other utility service providers.

(c)This Act shall not impair rights and remedies granted under the Mechanics Lien Act.