§ 47-38-02 — Unfair service agreements - Prohibition

1. A service agreement is deemed unfair under this chapter if the service obligations of
the agreement are not to be performed within one year after the agreement is
executed and the agreement:
a. Purports to be a covenant running with the land as described in section 47-04-25;
b. Purports to be binding on future owners of interests in the real property;
c. Allows for assignment of the right to provide service without notice and
agreement of the owner of residential real estate; or
d. Purports to create a lien, encumbrance, or other real property security interest.
2. This chapter does not:
a. Apply to a home warranty or other type of similar product that covers the cost of
maintenance of a major housing system for a set period of time from the date a
house is sold;
b. Apply to an insurance contract;
c. Apply to an option to purchase or right of refusal;
d. Apply to a maintenance or repair agreement executed between a landowner and
a homeowners' association in a common interest community; and
e. Impair the rights and remedies provided in chapter 35-27.