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.
47-38-03. Actions to terminate service agreements for unfairness - Unfair agreements void and unenforceable - Recording of court order. 1. A person claiming to be subject to an unfair service agreement under this chapter may bring an action to terminate the agreement in the district court of the county in which the property is situated. 2. If a service agreement is found to be unfair under this chapter: a. The agreement is void; and b. A certified copy of the court order finding the service agreement void must be filed for recording along with a copy or memorandum of the original service agreement if the original service agreement is not of record.