N.Y. General Business Law § 778-aaa: Definitions

§ 778-aaa. Definitions. As used in this article, the following terms,

unless the context requires otherwise, shall have the following

meanings:

1. "Person" means a natural person, partnership, association,

cooperative, corporation, trust, or other legal entity.

2. "Real estate service agreement" means a written contract under

which a person agrees to provide services in connection with the

maintenance of or purchase or sale of residential real estate.

3. "Recording" means presenting a document to a recording officer,

whether the county clerk of the county or the register of the county,

consistent with the real property law.

4. "Residential real estate" means real property located in this state

which is used primarily for personal, family, or household purposes and

is improved by one to four dwelling units, including condominium units.

5. "Service provider" means an individual or entity that provides

services to a person.

6. (a) "Unfair real estate service agreement" means any real estate

service agreement that is not to be performed within two years after the

time it is entered into and either:

(i) purports to run with the land or to be binding on future owners of

interests in the real property; or

(ii) allows for assignment of the right to provide service without

notice to and consent of the owner of residential real estate; or

(iii) purports to create a lien, encumbrance, or other real property

security interest, other than a mechanics lien properly issued pursuant

to the provisions of the lien law; or

(iv) is a real estate listing agreement as defined in paragraph e of

subdivision one of section four hundred forty-three of the real property

law.

(b) Notwithstanding the foregoing, an agreement shall not be

considered an unfair real estate service agreement if it is a valid:

(i) home warranty or similar product that covers the cost of

maintenance of a major home system for a fixed period;

(ii) insurance contract;

(iii) option or right of refusal to purchase the residential real

estate;

(iv) declaration created in the formation of a common interest

community or an amendment thereto;

(v) maintenance or repair agreement entered by a homeowners'

association in a common interest community;

(vi) mortgage loan or a commitment to make or receive a mortgage loan;

(vii) security agreement under the uniform commercial code relating to

the sale or rental of personal property or fixtures;

(viii) contract with a water, sewer, electrical, telephone, cable, or

other regulated utility service provider; or

(ix) contract, restrictive declaration, regulatory agreement or other

instrument, which is mandated by a governmental entity or to which a

governmental entity is a party.