Bill

S 4252

Provides for a continuation of senior citizen rent increase exemption benefits after a period of ineligibility

2025 Regular Session Introduced by Joe Addabbo and 4 co-sponsors

New Jersey S 4252 bans unlawful service agreements tied to residential real estate, blocks their recording, and lets affected owners seek unenforceability and damages.

REFERRED TO AGING

WeVote Research Nonpartisan

Bill Summary · S 4252

Summary of New Jersey S 4252 (Introduced March 3, 2025)

Note: The bill’s title references continuation of senior citizen rent increase exemption benefits, but the introduced text and accompanying materials describe a separate measure focused on unlawful service agreements tied to residential real estate. This summary follows the bill’s actual introduced content.

Purpose and intent

The bill seeks to prohibit unlawful service agreements relating to the maintenance, purchase, or sale of residential real estate, and to prevent such agreements from being recorded in the public land records. It aims to protect current and future property owners (including purchasers) from agreements that could burden title or create unwanted encumbrances.
It also creates remedies and penalties for recording or enforcing unlawful service agreements and outlines specific exemptions.

Key provisions

Definitions (Section 1)

Clarifies terms:
- “Person,” “Recording,” “Residential real estate” (1–4 dwelling units), “Service agreement,” and “Service provider.”

Prohibition on unlawful service agreements (Section 2)

A service agreement is unlawful if any part of the service to be performed is not within one year after execution and the agreement:
- purports to run with the land or be binding on future owners;
- allows assignment of the right to provide services without owner’s notice/consent;
- purports to create a lien, encumbrance, or other real property security interest.

Recording restrictions and penalties (Section 3)

Recording an unlawful service agreement or related notice is a Class A misdemeanor.
County recording officers may refuse to record unlawful service agreements.
If recorded, the agreement does not provide notice against a bona fide purchaser or creditor.

Remedies for affected interests (Section 4)

A person with an interest in the subject real property may:
- file a court complaint to declare the agreement unenforceable, and
- recover actual damages, costs, and attorney’s fees from the service provider who recorded it.

Exemptions (Section 5)

Exemptions include:
- Home warranties or similar maintenance products for major systems (e.g., plumbing, HVAC) for a fixed period;
- Insurance contracts;
- Options or rights of refusal to purchase real estate;
- Declarations in the formation or amendment of a common interest community;
- HOA maintenance/repair agreements within a common interest community;
- Mortgage loans or loan commitments;
- Security agreements under the State Uniform Construction Code Act related to sale or rental of personal property or fixtures;
- Utility providers (water, sewer, electrical, telephone, cable, etc.).
The act does not impair mechanics’ liens rights under existing law.

Effective date (Section 6)

The act takes effect immediately and applies to service agreements executed or renewed on or after enactment.

Who would be affected

Property owners and future owners of residential real estate.
Service providers offering maintenance, purchasing, or selling-related services tied to real estate.
County recording officers responsible for land records.
Courts handling enforcement and damages actions.

Enforcement, remedies, and penalties

Recording unlawful service agreements would be a Class A misdemeanor.
Affected property interests can seek unenforceability declarations and recover damages, costs, and attorney’s fees.
Public records would be protected from liens or encumbrances not compliant with the statute.

Legislative history and status

Introduced in the Senate on March 3, 2025; referred to Senate Aging (original path included other committees earlier in the process).
Senate action: Passed the Senate on May 15, 2025.
Assembly: Delivered to the Assembly and referred to Aging (as of the latest action noted).

Related bills

S 529, S 5495, S 3627, S 4825, S 5280, S 6383 (prior-session references)

If you’d like, I can tailor this summary to emphasize consumer-protection impacts, or provide a side-by-side comparison with current law on recording and mechanics liens.

Compiled from official sources — confirm details with the bill’s official record.