Senate File 417 S-3122 Amend Senate File 417 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. NEW SECTION . 558B.1 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. a. “Common interest community” means real estate 7 described in a declaration with respect to which a person, 8 by virtue of the person’s ownership of a unit, is obligated 9 to pay for a share of real estate taxes, insurance premiums, 10 maintenance, or improvement of, or services or other expenses 11 related to, common elements, other units, or other real estate 12 described in the declaration. “Common interest community” 13 includes a planned community, a cooperative under chapter 499A, 14 and a horizontal property regime under chapter 499B. 15 b. “Common interest community” does not include any of the 16 following: 17 (1) A covenant that requires the owners of separate parcels 18 of real estate to share costs or other obligations related to a 19 wall, driveway, well, or other similar structure, unless all 20 such owners consent in writing to the creation of a common 21 interest community. 22 (2) Real estate described in paragraph “a” if all units are 23 owned by a single owner. 24 2. “Consumer” means a natural person being provided a 25 service under a service agreement, or the natural person’s 26 legal representative. 27 3. “Record” means presentation of a document to a county 28 recorder in this state for official placement in the public 29 land records. 30 4. “Residential real estate” means real property located 31 in this state which is used primarily for personal, family, 32 or household purposes and is improved by one to four dwelling 33 units. 34 5. “Service agreement” means a contract under which a person 35 -1- SF 417.1622 (1) 90 (amending this SF 417 to CONFORM to HF 475) ko/ns 1/ 4 #1.

agrees to provide a service in connection with the maintenance 1 of, the purchase of, or the sale of, residential real estate. 2 Sec. 2. NEW SECTION . 558B.2 Unfair service agreements —— 3 penalties. 4 1. A service agreement shall be considered unfair under this 5 section if a service that is covered by the service agreement 6 is not required to be completely performed within one year 7 after the date on which the service agreement is executed, and 8 the service agreement has any of the following characteristics: 9 a. The service agreement purports to run with the land or 10 to be binding on future owners of interests in the residential 11 real estate that is the subject of the service agreement. 12 b. The service agreement permits assignment of the right to 13 provide service under the service agreement without requiring 14 notice to, and the consent of, the owner of the residential 15 real estate that is the subject of the service agreement. 16 c. The service agreement purports to create a lien, 17 encumbrance, or other real property security interest on the 18 residential real estate that is the subject of the service 19 agreement. 20 2. If a service agreement is unfair under this section, the 21 service agreement shall be unenforceable. 22 3. If a person enters into an unfair service agreement 23 with a consumer, the person commits an unlawful practice under 24 section 714.16. 25 4. a. A person shall not cause an unfair service agreement, 26 or a notice or memorandum of an unfair service agreement, to 27 be recorded. 28 b. A person who causes an unfair service agreement, or a 29 notice or memorandum of an unfair service agreement, to be 30 recorded commits an aggravated misdemeanor. 31 c. A county recorder may refuse to record an unfair service 32 agreement. 33 d. If an unfair service agreement is recorded, the recorded 34 service agreement shall not provide actual or constructive 35 -2- SF 417.1622 (1) 90 (amending this SF 417 to CONFORM to HF 475) ko/ns 2/ 4

notice against an otherwise bona fide purchaser or creditor, 1 or actual or constructive notice against heirs or other 2 successors-in-interest to the residential real estate that is 3 the subject of the recorded service agreement. 4 e. If an unfair service agreement or a notice or memorandum 5 of an unfair service agreement is recorded, any person with an 6 interest in the residential real estate that is the subject 7 of the service agreement may apply to a district court in the 8 county in which the service agreement is recorded for a court 9 order declaring the service agreement unenforceable. 10 f. If an unfair service agreement or a notice or memorandum 11 of an unfair service agreement is recorded, any person with an 12 interest in the residential real estate that is the subject 13 of the recorded service agreement may recover actual damages, 14 costs, and attorney fees as may be proven against the person 15 who caused the unfair service agreement or the notice or 16 memorandum of the unfair service agreement to be recorded. 17 5. This section does not apply to any of the following: 18 a. A home warranty or similar agreement that covers the 19 cost of maintenance for a fixed period of time of a major home 20 system including but not limited to plumbing, electrical, 21 heating, ventilation, or air conditioning. 22 b. An insurance contract. 23 c. An option or a right of refusal to purchase residential 24 real estate. 25 d. A maintenance or repair agreement entered into by the 26 homeowners’ association of a common interest community. 27 e. A mortgage loan, or a commitment to make or to receive a 28 mortgage loan. 29 f. A security agreement under the uniform commercial code 30 related to the sale or rental of personal property or fixtures. 31 g. Water, sewer, electrical, telephone, cable, internet, or 32 any other utility service providers. 33 6. This section shall not be construed to impair a person’s 34 rights established by a mechanics’ lien under chapter 572. 35 -3- SF 417.1622 (1) 90 (amending this SF 417 to CONFORM to HF 475) ko/ns 3/ 4

Sec. 3. Section 714.16, subsection 2, Code 2023, is amended 1 by adding the following new paragraph: 2 NEW PARAGRAPH . q. It shall be an unlawful practice for a 3 person to violate section 558B.2, subsection 3. > 4 ______________________________ SCOTT WEBSTER -4- SF 417.1622 (1) 90 (amending this SF 417 to CONFORM to HF 475) ko/ns 4/ 4