Amd §327-a, RP L (as proposed in S.3178-A & A.1820-A)
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 a protected class in violation of state or federal law.
STATE OF NEW YORK
________________________________________________________________________
9499
IN ASSEMBLY
January 7, 2026
___________
Introduced by M. of A. STECK -- 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. Section 327-a of the real property law, as added by a chap-
2 ter of the laws of 2025 amending the real property law relating to
3 requiring the modification of restrictive covenants prior to the sale of
4 real property, as proposed in legislative bills numbers S. 3178-A and A.
5 1820-A, is amended to read as follows:
6 § 327-a. Modification of restrictive covenants. 1. As used in this
7 section, the following terms shall have the following meanings:
8 (a) [If any covenants, conditions and restrictions exist in a document
9 to be recorded which discriminate on the basis of race, color, religion,
10 sex, sexual orientation, familial status, marital status, disability,
11 national origin, source of income, or ancestry] "Protected class" shall
12 mean any class or category of persons protected from unlawful discrimi-
13 natory practices under subdivision five of section two hundred ninety-
14 six of the executive law.
15 (b) "Unlawful restrictions" shall mean any covenants, conditions, or
16 restrictions that unlawfully discriminate on the basis of a protected
17 class in violation of state or federal law.
18 2. If any unlawful restrictions exist in a document to be recorded,
19 any seller shall:
20 [(i)] (a) have such unlawful restrictions removed from such document
21 by submitting a restrictive covenant modification document, which shall
22 be available from the county recorder, either with the deed for record-
23 ing, or separately;
24 [(ii)] (b) provide the purchaser or title insurance applicant with a
25 copy of the appropriate restrictive covenant modification document prior
26 to or at the closing of title; and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00409-04-6
A. 9499 2
1 [(iii)] (c) record the restrictive covenant modification document,
2 however, such seller shall not be required to pay filing fees for the
3 recording of the restrictive covenant modification document.
4 [(b)] 3. Within one year of the effective date of this section, the
5 board of managers of a condominium, the board of directors of a cooper-
6 ative apartment corporation or a homeowners association if such real
7 property is subject to the rules and regulations of such an association,
8 shall delete or amend any [covenants, conditions and] unlawful
9 restrictions that exist in a recorded document [which discriminate on
10 the basis of race, color, religion, sex, sexual orientation, familial
11 status, marital status, disability, national origin, source of income,
12 or ancestry]. Such deletions or amendments shall not be subject to the
13 approval of property owners.
14 [(c) This section shall not apply to any lawful restrictions under
15 state and federal law.
16 2.] 4. The restrictive covenant modification document that shall be
17 made available from the county recorder pursuant to subdivision six of
18 this section shall be indexed in the same manner as any previously
19 recorded document or documents to which the modification document refers
20 and shall reference the original document by book and page number or
21 instrument number and the date of recording.
22 [3. Subject to covenants, conditions, and restrictions recorded after
23 the original document containing unlawful restrictions, and subject to
24 covenants, conditions and restrictions recorded after the restrictive
25 covenant modification document, the restrictive covenant modification,
26 once recorded, shall be deemed the only restrictions having effect on
27 the property.
28 4.] 5. Any person holding an ownership interest in real property that
29 such person believes is subject to an [unlawfully restrictive covenant
30 in violation of state or federal law prohibiting restriction based on
31 race, color, religion, sex, sexual orientation, familial status, marital
32 status, disability, national origin, source of income, or ancestry]
33 unlawful restriction may record a restrictive covenant modification
34 document pursuant to subdivision [one] two of this section. Such
35 recording shall include a complete copy of the original document
36 containing the unlawful [language] restriction with the unlawful
37 [language] restriction stricken and shall be signed under penalty of
38 law.
39 [5.] 6. The county recorder shall make available to the public forms
40 for preparation of a restrictive covenant modification document.
41 [6.] 7. If the holder of an ownership interest in property causes to
42 be recorded a restrictive covenant modification document pursuant to
43 this section which contains language not authorized by this section, any
44 liability which derives from such recording shall be the sole responsi-
45 bility of the holder of the ownership interest of record and the county
46 recorder shall not incur any liability for recording such document.
47 8. This section shall not apply to any lawful covenants, conditions,
48 or restrictions under state or federal law.
49 § 2. This act shall take effect on the same date and in the same
50 manner as a chapter of the laws of 2025 amending the real property law
51 relating to requiring the modification of restrictive covenants prior to
52 the sale of real property, as proposed in legislative bills numbers S.
53 3178-A and A. 1820-A, takes effect.
