Assembly Bill A2371

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

                                  2371

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            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:

  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,
GENDER, SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL STATUS, DISABILITY,
NATIONAL ORIGIN, SOURCE OF INCOME,  SOCIO-ECONOMIC  STATUS  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, GENDER, SEXUAL ORIENTATION,
FAMILIAL  STATUS, MARITAL STATUS, DISABILITY, NATIONAL ORIGIN, SOURCE OF
INCOME, SOCIO-ECONOMIC STATUS OR ANCESTRY, THAT VIOLATE STATE AND FEDER-
AL HOUSING LAW." THE PURCHASER/TITLE INSURANCE APPLICANT OF REAL PROPER-
TY MAY HAVE SUCH ILLEGAL RESTRICTIONS  REMOVED  FROM  SUCH  DOCUMENT  BY
SUBMITTING  A RESTRICTIVE COVENANT MODIFICATION 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;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02250-02-9

A. 2371                             2
              

  (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;
  (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,  GENDER,  SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL
STATUS, DISABILITY, NATIONAL ORIGIN, SOURCE  OF  INCOME,  SOCIO-ECONOMIC
STATUS  OR ANCESTRY MAY RECORD A RESTRICTIVE COVENANT MODIFICATION DOCU-
MENT 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.