Senate Bill S4740

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4740--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 10, 2021
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Judiciary  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 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:
 
   Section 1. The real property law is amended by adding  a  new  section
 327-a to read as follows:
   §  327-A.  MODIFICATION OF RESTRICTIVE COVENANTS. 1. (A) IF ANY COVEN-
 ANTS, CONDITIONS AND RESTRICTIONS EXIST IN A  DOCUMENT  TO  BE  RECORDED
 WHICH  DISCRIMINATE  ON  THE BASIS OF RACE, COLOR, RELIGION, SEX, SEXUAL
 ORIENTATION,  FAMILIAL  STATUS,  MARITAL  STATUS,  DISABILITY,  NATIONAL
 ORIGIN, SOURCE OF INCOME, OR ANCESTRY, ANY SELLER SHALL:
   (I)  HAVE  SUCH  UNLAWFUL  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 OR TITLE INSURANCE APPLICANT WITH A COPY OF
 THE APPROPRIATE RESTRICTIVE COVENANT MODIFICATION DOCUMENT PRIOR  TO  OR
 AT THE CLOSING OF TITLE;
   (III)  RECORD THE RESTRICTIVE COVENANT MODIFICATION DOCUMENT, HOWEVER,
 SUCH SELLER SHALL NOT BE REQUIRED TO PAY FILING FEES FOR  THE  RECORDING
 OF THE RESTRICTIVE COVENANT MODIFICATION DOCUMENT.
   (B)  WITHIN  ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE BOARD
 OF MANAGERS OF A CONDOMINIUM, THE BOARD OF DIRECTORS  OF  A  COOPERATIVE
 APARTMENT  CORPORATION OR A HOMEOWNERS ASSOCIATION IF SUCH REAL PROPERTY
 IS SUBJECT TO THE RULES AND REGULATIONS OF SUCH  AN  ASSOCIATION,  SHALL
 DELETE OR AMEND ANY COVENANTS, CONDITIONS AND RESTRICTIONS THAT EXIST IN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09514-03-1

 S. 4740--A                          2
 
 A  RECORDED  DOCUMENT  WHICH  DISCRIMINATE  ON THE BASIS OF RACE, COLOR,
 RELIGION, SEX, SEXUAL  ORIENTATION,  FAMILIAL  STATUS,  MARITAL  STATUS,
 DISABILITY,  NATIONAL  ORIGIN,  SOURCE  OF  INCOME,  OR  ANCESTRY.  SUCH
 DELETIONS OR AMENDMENTS SHALL NOT BE SUBJECT TO THE APPROVAL OF PROPERTY
 OWNERS.
   (C)  THIS  SECTION  SHALL  NOT  APPLY TO ANY LAWFUL RESTRICTIONS UNDER
 STATE AND FEDERAL 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 NUMBER OR INSTRUMENT NUMBER AND THE DATE OF
 RECORDING.
   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,  SEXUAL  ORIENTATION,  FAMILIAL  STATUS, MARITAL
 STATUS, DISABILITY, NATIONAL ORIGIN, SOURCE OF INCOME, OR  ANCESTRY  MAY
 RECORD A RESTRICTIVE COVENANT MODIFICATION DOCUMENT PURSUANT TO SUBDIVI-
 SION  ONE OF THIS SECTION.  SUCH RECORDING SHALL INCLUDE A COMPLETE COPY
 OF THE ORIGINAL DOCUMENT  CONTAINING  THE  UNLAWFUL  LANGUAGE  WITH  THE
 UNLAWFUL 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.
   § 2. This act shall take effect on the one hundred eightieth day after
 it  shall have become a law. Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be  made  and
 completed on or before such effective date.