(1) As used in this section, unless the context otherwise requires, “broker engagement contract” means a written contract in which a seller, buyer, landlord, or tenant of a residential premises becomes the client of a broker or agrees to retain the services of a broker in the future and promises to pay the broker a valuable consideration or agrees that the broker may receive a valuable consideration from another person in exchange for the broker: (a) Producing a seller, buyer, tenant, or landlord ready, able, and willing to sell, buy, or rent the residential premises; or (b) Performing other services.
(a) Producing a seller, buyer, tenant, or landlord ready, able, and willing to sell, buy, or rent the residential premises; or
(b) Performing other services.
(2) A broker engagement contract must not: (a) Purport to be a covenant running with the land or to be binding on future owners of interests in the real property; (b) Allow for assignment of the right to provide service without notice and agreement of the owner of the residential premises; or (c) Purport to create a recordable lien, encumbrance, or other real property security interest. Any such lien, encumbrance, or other real property security interest is void and unenforceable.
(a) Purport to be a covenant running with the land or to be binding on future owners of interests in the real property;
(b) Allow for assignment of the right to provide service without notice and agreement of the owner of the residential premises; or
(c) Purport to create a recordable lien, encumbrance, or other real property security interest. Any such lien, encumbrance, or other real property security interest is void and unenforceable.
(3) A person who offers to a consumer a broker engagement contract that includes a provision in violation of subsection (2) of this section commits an unfair or deceptive trade practice, as provided in section 6-1-105 (1)(uuu).
(4) This section does not apply to: (a) A home warranty service contract, as defined in section 12-10-901 (2)(a); (b) A building warranty or similar product that covers the cost of maintenance of a major housing or building system, such as a plumbing or an electrical system, for a specific period of time after the date on which a house or building is sold; (c) An insurance contract; (d) An option to purchase, a put requirement to purchase, a right of first offer, or a right of refusal; (e) A declaration created in the formation of a common interest community, as defined in section 38-33.3-103 (8), or an amendment to the declaration; (f) A maintenance or repair agreement entered into by a unit owners’ association, as defined in section 38-33.3-103 (3); (g) A loan or a commitment to make or receive a loan, which loan or commitment is secured by real estate; (h) A security agreement under the “Uniform Commercial Code” relating to the sale or rental of personal property or fixtures; (i) Water, sewer, electrical, telephone, cable, or other regulated utility service providers; or (j) A property management agreement by which the owner of real property contracts with a party to provide management services for the maintenance, ownership, operation, or lease of a residential premises.
(a) A home warranty service contract, as defined in section 12-10-901 (2)(a);
(b) A building warranty or similar product that covers the cost of maintenance of a major housing or building system, such as a plumbing or an electrical system, for a specific period of time after the date on which a house or building is sold;
(c) An insurance contract;
(d) An option to purchase, a put requirement to purchase, a right of first offer, or a right of refusal;
(e) A declaration created in the formation of a common interest community, as defined in section 38-33.3-103 (8), or an amendment to the declaration;
(f) A maintenance or repair agreement entered into by a unit owners’ association, as defined in section 38-33.3-103 (3);
(g) A loan or a commitment to make or receive a loan, which loan or commitment is secured by real estate;
(h) A security agreement under the “Uniform Commercial Code” relating to the sale or rental of personal property or fixtures;
(i) Water, sewer, electrical, telephone, cable, or other regulated utility service providers; or
(j) A property management agreement by which the owner of real property contracts with a party to provide management services for the maintenance, ownership, operation, or lease of a residential premises.