S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4428
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2023
                                ___________
 
 Introduced  by  M.  of  A.  STECK, HUNTER, SANTABARBARA -- read once and
   referred to the Committee on Judiciary
 
 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
 A RECORDED DOCUMENT WHICH DISCRIMINATE ON  THE  BASIS  OF  RACE,  COLOR,
 RELIGION,  SEX,  SEXUAL  ORIENTATION,  FAMILIAL  STATUS, MARITAL STATUS,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05928-01-3
              

 A. 4428                             2
 
 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.