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A04428 Summary:

BILL NOA04428
 
SAME ASSAME AS S01728
 
SPONSORSteck
 
COSPNSRHunter, Santabarbara, Dickens, Clark, Levenberg
 
MLTSPNSR
 
Add §327-a, RP L
 
Requires the modification of restrictive covenants prior to the sale of real property when covenants, conditions and restrictions exist which discriminate on the basis of race, color, religion, sex, sexual orientation, familial status, marital status, disability, national origin, source of income or ancestry.
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A04428 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4428
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 14, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  STECK, HUNTER, SANTABARBARA -- read once and
          referred to the Committee on Judiciary
 
        AN ACT to amend the real property law,  in  relation  to  requiring  the
          modification  of restrictive covenants prior to the sale of real prop-
          erty
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  real property law is amended by adding a new section
     2  327-a to read as follows:
     3    § 327-a. Modification of restrictive covenants. 1. (a) If  any  coven-
     4  ants,  conditions  and  restrictions  exist in a document to be recorded
     5  which discriminate on the basis of race, color,  religion,  sex,  sexual
     6  orientation,  familial  status,  marital  status,  disability,  national
     7  origin, source of income, or ancestry, any seller shall:
     8    (i) have such unlawful restrictions  removed  from  such  document  by
     9  submitting  a restrictive covenant modification document, which shall be
    10  available from the county recorder, either with the deed for  recording,
    11  or separately;
    12    (ii) provide the purchaser or title insurance applicant with a copy of
    13  the  appropriate  restrictive covenant modification document prior to or
    14  at the closing of title;
    15    (iii) record the restrictive covenant modification document,  however,
    16  such  seller  shall not be required to pay filing fees for the recording
    17  of the restrictive covenant modification document.
    18    (b) Within one year of the effective date of this section,  the  board
    19  of  managers  of  a condominium, the board of directors of a cooperative
    20  apartment corporation or a homeowners association if such real  property
    21  is  subject  to  the rules and regulations of such an association, shall
    22  delete or amend any covenants, conditions and restrictions that exist in
    23  a recorded document which discriminate on  the  basis  of  race,  color,
    24  religion,  sex,  sexual  orientation,  familial  status, marital status,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05928-01-3

        A. 4428                             2
 
     1  disability,  national  origin,  source  of  income,  or  ancestry.  Such
     2  deletions or amendments shall not be subject to the approval of property
     3  owners.
     4    (c)  This  section  shall  not  apply to any lawful restrictions under
     5  state and federal law.
     6    2. The restrictive covenant modification document shall be indexed  in
     7  the  same  manner  as  any  previously recorded document or documents to
     8  which the modification document refers and shall reference the  original
     9  document  by  book  and page number or instrument number and the date of
    10  recording.
    11    3. Subject to covenants, conditions, and restrictions  recorded  after
    12  the  original  document containing unlawful restrictions, and subject to
    13  covenants, conditions and restrictions recorded  after  the  restrictive
    14  covenant  modification  document, the restrictive covenant modification,
    15  once recorded, shall be deemed the only restrictions  having  effect  on
    16  the property.
    17    4.  Any  person holding an ownership interest in real property that he
    18  or she believes is subject to  an  unlawfully  restrictive  covenant  in
    19  violation of state or federal law prohibiting restriction based on race,
    20  color,  religion,  sex,  sexual  orientation,  familial  status, marital
    21  status, disability, national origin, source of income, or  ancestry  may
    22  record a restrictive covenant modification document pursuant to subdivi-
    23  sion  one of this section.  Such recording shall include a complete copy
    24  of the original document  containing  the  unlawful  language  with  the
    25  unlawful language stricken and shall be signed under penalty of law.
    26    5.  The  county  recorder shall make available to the public forms for
    27  preparation of a restrictive covenant modification document.
    28    6. If the holder of an ownership interest in  property  causes  to  be
    29  recorded  a  restrictive covenant modification document pursuant to this
    30  section which contains language not  authorized  by  this  section,  any
    31  liability  which derives from such recording shall be the sole responsi-
    32  bility of the holder of the ownership interest of record and the  county
    33  recorder shall not incur any liability for recording such document.
    34    § 2. This act shall take effect on the one hundred eightieth day after
    35  it  shall have become a law. Effective immediately, the addition, amend-
    36  ment and/or repeal of any rule or regulation necessary for the implemen-
    37  tation of this act on its effective date are authorized to be  made  and
    38  completed on or before such effective date.
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