senate Bill S1095

Amended

Provides for the recordation of restrictive covenant modification documents where conveyance instruments include language violative of civil rights laws

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 05 / Jan / 2011
    • REFERRED TO JUDICIARY
  • 04 / Jan / 2012
    • REFERRED TO JUDICIARY
  • 11 / Jan / 2012
    • AMEND AND RECOMMIT TO JUDICIARY
  • 11 / Jan / 2012
    • PRINT NUMBER 1095A

Summary

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.

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Bill Details

See Assembly Version of this Bill:
A2560
Versions:
S1095
S1095A
Legislative Cycle:
2011-2012
Current Committee:
Senate Judiciary
Law Section:
Real Property Law
Laws Affected:
Add ยง291-i, RP L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S1933, A5362
2007-2008: A7982

Sponsor Memo

BILL NUMBER:S1095

TITLE OF BILL:
An act
to amend the real property law, in relation to recording of restrictive
covenant modification documents

PURPOSE OR GENERAL IDEA OF BILL:
To provide a
mechanism to allow home owners to remove current offensive, illegal and
racists covenants that restrict owners from selling or conveying to any
person based on one's race, color, religion, sex, familial status,
disability, national origin, source of income, or ancestry that violates
state and federal housing law.

SUMMARY OF SPECIFIC PROVISIONS:
This bill would
require any title insurance company, title abstract company, or escrow
company to inform the buyer of a property whether the property in
question contains a restrictive covenant based on race, color, religion,
sex, familial status, marital status, disability, national origin,
source of income, or ancestry that violates state and federal housing
law.

This bill would also provide a process to remove said offensive and
racist language from the public record. Then, the person who holds an
ownership interest of record in property can record a document to delete
the illegal restrictive covenant from the county record.

JUSTIFICATION:
Currently in New York State, there are
still racial restrictive covenants on County records and such language
such as, "No persons of any race other than the white or Caucasian race
shall use or occupy any building or any lot except that this covenant
shall not prevent occupancy by domestic servants of a different race
with an owner and tenant." It is still in existence in certain
communities, such as Chappaqua and Nassau County. The Supreme Court
ruled against racially restrictive covenants in 1948, and they were
outlawed by the Federal Fair Housing Act of 1968. Nevertheless, these
racially restrictive covenants are still part of the county records, and
will continue to remain in the public record until removed by the home
owner. Title companies do not show this language to buyers during their
searches since they are legally unenforceable. Thus, most buyers do not
know about its existence. However, the language should be removed from
the public records because it is offensive, illegal, unenforceable, and
only serves as a reminder of the painful racist American history, and as
a stain on the progressive legislative history of the State of New York.
Other States such as California and Missouri have either passed or
introduced bills to eliminate the racist language from the records.

PRIOR LEGISLATIVE HISTORY:
2009-2010 S.1933
2007-2008 S.1984
2005-2006 S.8134

FISCAL IMPLICATIONS:


To be determined.

EFFECTIVE DATE:
This act will take effect on the one hundred eightieth day after it shall
have become a law; provided, however, that effective immediately, the
addition, amendment and/or repeal of any rule or regulation necessary
for the implementation of this act on its effective date are
authorized and directed to be made and completed on or before such
effective date.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1095

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             January 5, 2011
                               ___________

Introduced  by  Sens.  PARKER,  DUANE, KRUEGER -- read twice and ordered
  printed, and when printed to be committed to the Committee on  Judici-
  ary

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:

  Section  1.  The  real property law is amended by adding a new section
291-i to read as follows:
  S 291-I. RECORDING OF RESTRICTIVE COVENANT MODIFICATION  DOCUMENT.  1.
(A) IF ANY COVENANTS, CONDITIONS AND RESTRICTIONS EXIST IN A DOCUMENT TO
BE  RECORDED  WHICH  DISCRIMINATE ON THE BASIS OF RACE, COLOR, RELIGION,
SEX, FAMILIAL  STATUS,  MARITAL  STATUS,  DISABILITY,  NATIONAL  ORIGIN,
SOURCE  OF  INCOME,  OR ANCESTRY THEN ANY TITLE INSURANCE COMPANY, TITLE
ABSTRACT COMPANY OR ESCROW COMPANY, SHALL:
  (I) NOTIFY IN AT LEAST EIGHTEEN-POINT BOLDFACE TYPE ON A SEPARATE PAGE
WITHIN THE TITLE ABSTRACT REPORT TO THE PURCHASER/TITLE INSURANCE APPLI-
CANT,  THE  FOLLOWING  LANGUAGE:   "THIS   DOCUMENT   CONTAINS   ILLEGAL
RESTRICTIONS BASED ON RACE, COLOR, RELIGION, SEX, FAMILIAL STATUS, MARI-
TAL  STATUS, DISABILITY, NATIONAL ORIGIN, SOURCE OF INCOME, OR ANCESTRY,
THAT VIOLATE STATE AND FEDERAL HOUSING LAW." THE PURCHASER/TITLE  INSUR-
ANCE  APPLICANT  OF  REAL  PROPERTY  MAY  HAVE SUCH ILLEGAL RESTRICTIONS
REMOVED FROM SUCH DOCUMENT BY SUBMITTING A RESTRICTIVE COVENANT  MODIFI-
CATION  DOCUMENT,  WHICH  SHALL  BE  AVAILABLE FROM THE COUNTY RECORDER,
EITHER WITH THE DEED FOR RECORDING, OR SEPARATELY;
  (II) PROVIDE THE PURCHASER/TITLE INSURANCE APPLICANT  WITH  A  LEGIBLE
COPY  OF  THE  ILLEGAL LANGUAGE ON A SEPARATE PAGE IN THE TITLE ABSTRACT
REPORT;
  (III) PROVIDE THE PURCHASER/TITLE INSURANCE APPLICANT WITH A  COPY  OF
THE  APPROPRIATE  RESTRICTIVE COVENANT MODIFICATION DOCUMENT PRIOR TO OR
AT THE CLOSING OF TITLE;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02154-01-1

S. 1095                             2

  (IV) RECORD THE  RESTRICTIVE  COVENANT  MODIFICATION  DOCUMENT,  WHICH
PURCHASER   SHALL   PAY   THE   APPROPRIATE   FILING  FEES,  UNLESS  THE
PURCHASER/TITLE INSURANCE APPLICANT OBJECTS IN WRITING.
  (B)  THIS  SECTION  SHALL  NOT  APPLY TO ANY LAWFUL RESTRICTIONS UNDER
STATE AND FEDERAL HOUSING LAW.
  2. THE RESTRICTIVE COVENANT MODIFICATION DOCUMENT SHALL BE INDEXED  IN
THE  SAME  MANNER  AS  ANY  PREVIOUSLY RECORDED DOCUMENT OR DOCUMENTS TO
WHICH THE MODIFICATION DOCUMENT REFERS AND SHALL REFERENCE THE  ORIGINAL
DOCUMENT  BY  BOOK AND PAGE OR INSTRUMENT NUMBER AND THE DATE OF RECORD-
ING.
  3. SUBJECT TO COVENANTS, CONDITIONS, AND RESTRICTIONS  RECORDED  AFTER
THE  ORIGINAL  DOCUMENT CONTAINING UNLAWFUL RESTRICTIONS, AND SUBJECT TO
COVENANTS, CONDITIONS AND RESTRICTIONS RECORDED  AFTER  THE  RESTRICTIVE
COVENANT  MODIFICATION  DOCUMENT, THE RESTRICTIVE COVENANT MODIFICATION,
ONCE RECORDED, SHALL BE DEEMED THE ONLY RESTRICTIONS  HAVING  EFFECT  ON
THE PROPERTY.
  4.  ANY  PERSON HOLDING AN OWNERSHIP INTEREST IN REAL PROPERTY THAT HE
OR SHE BELIEVES IS SUBJECT TO  AN  UNLAWFULLY  RESTRICTIVE  COVENANT  IN
VIOLATION OF STATE OR FEDERAL LAW PROHIBITING RESTRICTION BASED ON RACE,
COLOR,  RELIGION,  SEX,  FAMILIAL  STATUS,  MARITAL  STATUS, DISABILITY,
NATIONAL ORIGIN, SOURCE OF INCOME, OR ANCESTRY MAY RECORD A  RESTRICTIVE
COVENANT  MODIFICATION  DOCUMENT  PURSUANT  TO  SUBDIVISION  ONE OF THIS
SECTION. SUCH RECORDING SHALL INCLUDE A COMPLETE COPY  OF  THE  ORIGINAL
DOCUMENT  CONTAINING  THE  ILLEGAL  LANGUAGE  WITH  THE ILLEGAL LANGUAGE
STRICKEN AND SHALL BE SIGNED UNDER PENALTY OF LAW.
  5. THE COUNTY RECORDER SHALL MAKE AVAILABLE TO THE  PUBLIC  FORMS  FOR
PREPARATION OF A RESTRICTIVE COVENANT MODIFICATION DOCUMENT.
  6.  IF  THE  HOLDER  OF AN OWNERSHIP INTEREST IN PROPERTY CAUSES TO BE
RECORDED A RESTRICTIVE COVENANT MODIFICATION DOCUMENT PURSUANT  TO  THIS
SECTION  WHICH  CONTAINS  LANGUAGE  NOT  AUTHORIZED BY THIS SECTION, ANY
LIABILITY WHICH DERIVES FROM SUCH RECORDING SHALL BE THE SOLE  RESPONSI-
BILITY  OF THE HOLDER OF THE OWNERSHIP INTEREST OF RECORD AND THE COUNTY
RECORDER SHALL NOT INCUR ANY LIABILITY FOR RECORDING SUCH DOCUMENT.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however that effective  immediate-
ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
necessary for the implementation of this act on its effective  date  are
authorized  and  directed  to  be  made  and completed on or before such
effective date.

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