Senate Bill S4293

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4293
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2025
                                ___________
 
 Introduced  by  Sens.  PARKER,  KRUEGER,  MAY  -- 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-k to read as follows:
   § 291-K. 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.
                                                            LBD07998-01-5
              

 S. 4293                             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 SUCH
 PERSON  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.
   § 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.