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S01728 Text:

                STATE OF NEW YORK
                               2023-2024 Regular Sessions
                    IN SENATE
                                    January 13, 2023
        Introduced  by  Sens.  SANDERS, COMRIE, RIVERA -- read twice and ordered
          printed, and when printed to be committed to the Committee on  Judici-
        AN  ACT  to  amend  the  real property law, in relation to requiring the
          modification of restrictive covenants prior to the sale of real  prop-

          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,
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 1728                             2
     1  religion, sex, sexual  orientation,  familial  status,  marital  status,
     2  disability,  national  origin,  source  of  income,  or  ancestry.  Such
     3  deletions or amendments shall not be subject to the approval of property
     4  owners.
     5    (c)  This  section  shall  not  apply to any lawful restrictions under
     6  state and federal law.
     7    2. The restrictive covenant modification document shall be indexed  in
     8  the  same  manner  as  any  previously recorded document or documents to
     9  which the modification document refers and shall reference the  original
    10  document  by  book  and page number or instrument number and the date of
    11  recording.
    12    3. Subject to covenants, conditions, and restrictions  recorded  after
    13  the  original  document containing unlawful restrictions, and subject to
    14  covenants, conditions and restrictions recorded  after  the  restrictive
    15  covenant  modification  document, the restrictive covenant modification,
    16  once recorded, shall be deemed the only restrictions  having  effect  on
    17  the property.
    18    4.  Any  person holding an ownership interest in real property that he
    19  or she believes is subject to  an  unlawfully  restrictive  covenant  in
    20  violation of state or federal law prohibiting restriction based on race,
    21  color,  religion,  sex,  sexual  orientation,  familial  status, marital
    22  status, disability, national origin, source of income, or  ancestry  may
    23  record a restrictive covenant modification document pursuant to subdivi-
    24  sion  one of this section.  Such recording shall include a complete copy
    25  of the original document  containing  the  unlawful  language  with  the
    26  unlawful language stricken and shall be signed under penalty of law.
    27    5.  The  county  recorder shall make available to the public forms for
    28  preparation of a restrictive covenant modification document.
    29    6. If the holder of an ownership interest in  property  causes  to  be
    30  recorded  a  restrictive covenant modification document pursuant to this
    31  section which contains language not  authorized  by  this  section,  any
    32  liability  which derives from such recording shall be the sole responsi-
    33  bility of the holder of the ownership interest of record and the  county
    34  recorder shall not incur any liability for recording such document.
    35    § 2. This act shall take effect on the one hundred eightieth day after
    36  it  shall have become a law. Effective immediately, the addition, amend-
    37  ment and/or repeal of any rule or regulation necessary for the implemen-
    38  tation of this act on its effective date are authorized to be  made  and
    39  completed on or before such effective date.
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