Boyland, Farrell, Mayersohn, Peoples-Stokes, Rivera N, Titus
Add S291-i, RPT L
Provides for notice of illegal restrictive covenant language in documents to be recorded and the recordation of restrictive covenant modification documents where conveyance instruments include language violative of civil rights laws; requires any title insurance company, title abstract company or escrow company to include such notice in title abstract reports and to inform purchaser/title insurance applicants of the availability from the county recorder of restrictive covenant modification documents.
STATE OF NEW YORK
________________________________________________________________________
2371
2009-2010 Regular Sessions
IN ASSEMBLY
January 15, 2009
___________
Introduced by M. of A. JEFFRIES -- read once and referred to the Commit-
tee on Judiciary
AN ACT to amend the real property law, in relation to recording of
restrictive covenant modification documents
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
2 291-i to read as follows:
3 § 291-i. Recording of restrictive covenant modification document. 1.
4 (a) If any covenants, conditions and restrictions exist in a document to
5 be recorded which discriminate on the basis of race, color, religion,
6 gender, sexual orientation, familial status, marital status, disability,
7 national origin, source of income, socio-economic status or ancestry
8 then any title insurance company, title abstract company or escrow
9 company, shall:
10 (i) notify in at least eighteen-point boldface type on a separate page
11 within the title abstract report to the purchaser/title insurance appli-
12 cant, the following language: "This document contains illegal
13 restrictions based on race, color, religion, gender, sexual orientation,
14 familial status, marital status, disability, national origin, source of
15 income, socio-economic status or ancestry, that violate state and feder-
16 al housing law." The purchaser/title insurance applicant of real proper-
17 ty may have such illegal restrictions removed from such document by
18 submitting a restrictive covenant modification document, which shall be
19 available from the county recorder, either with the deed for recording,
20 or separately;
21 (ii) provide the purchaser/title insurance applicant with a legible
22 copy of the illegal language on a separate page in the title abstract
23 report;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02250-02-9
A. 2371 2
1 (iii) provide the purchaser/title insurance applicant with a copy of
2 the appropriate restrictive covenant modification document prior to or
3 at the closing of title;
4 (iv) record the restrictive covenant modification document, which
5 purchaser shall pay the appropriate filing fees, unless the
6 purchaser/title insurance applicant objects in writing.
7 (b) This section shall not apply to any lawful restrictions under
8 state and federal housing law.
9 2. The restrictive covenant modification document shall be indexed in
10 the same manner as any previously recorded document or documents to
11 which the modification document refers and shall reference the original
12 document by book and page or instrument number and the date of record-
13 ing.
14 3. Subject to covenants, conditions, and restrictions recorded after
15 the original document containing unlawful restrictions, and subject to
16 covenants, conditions and restrictions recorded after the restrictive
17 covenant modification document, the restrictive covenant modification,
18 once recorded, shall be deemed the only restrictions having effect on
19 the property.
20 4. Any person holding an ownership interest in real property that he
21 or she believes is subject to an unlawfully restrictive covenant in
22 violation of state or federal law prohibiting restriction based on race,
23 color, religion, gender, sexual orientation, familial status, marital
24 status, disability, national origin, source of income, socio-economic
25 status or ancestry may record a restrictive covenant modification docu-
26 ment pursuant to subdivision one of this section. Such recording shall
27 include a complete copy of the original document containing the illegal
28 language with the illegal language stricken and shall be signed under
29 penalty of law.
30 5. The county recorder shall make available to the public forms for
31 preparation of a restrictive covenant modification document.
32 6. If the holder of an ownership interest in property causes to be
33 recorded a restrictive covenant modification document pursuant to this
34 section which contains language not authorized by this section, any
35 liability which derives from such recording shall be the sole responsi-
36 bility of the holder of the ownership interest of record and the county
37 recorder shall not incur any liability for recording such document.
38 § 2. This act shall take effect on the one hundred eightieth day after
39 it shall have become a law; provided, however that effective immediate-
40 ly, the addition, amendment and/or repeal of any rule or regulation
41 necessary for the implementation of this act on its effective date are
42 authorized and directed to be made and completed on or before such
43 effective date.
