Bill Text: HI SB2217 | 2022 | Regular Session | Introduced
Bill Title: Relating To Real Property.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-02-09 - The committee on WTL deferred the measure. [SB2217 Detail]
Download: Hawaii-2022-SB2217-Introduced.html
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THE SENATE |
S.B. NO. |
2217 |
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THIRTY-FIRST LEGISLATURE, 2022 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO REAL PROPERTY.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 501-196, Hawaii Revised Statutes, is amended to read as follows:
"§501-196 Alterations upon
registration book prohibited when; court hearings; limitations[.]; removal
of unlawful covenants. No
erasure, alteration, or amendment shall be made upon the registration book
after the entry of a certificate of title or of a memorandum thereon, and the
approval of the same by the registrar or an assistant registrar except by order
of the court recorded with the assistant registrar[,]; provided
that the registrar or assistant registrar may correct any clerical error made
by personnel of the registrar's or assistant registrar's office. Any registered owner or other person in
interest may at any time apply by petition to the court, upon the ground that
registered interests of any description, whether vested, contingent, expectant,
or inchoate have terminated and ceased; or that new interests have arisen or
been created [which] that do not appear upon the certificate; or
that any error, omission, or mistake was made in entering a certificate or any
memorandum thereon; or that the name of any person on the certificate has been
changed; or that the registered owner has been married, or if registered as
married that the marriage has been terminated; or that a corporation [which]
that owned registered land and has been dissolved has not conveyed the
same within three years after its dissolution, or upon any other reasonable
ground. The court shall have
jurisdiction to hear and determine the petition after notice to all parties in
interest and may order the entry of a new certificate, the entry or
cancellation of a memorandum upon a certificate, or grant any other relief upon
such terms and conditions, requiring security if necessary, as it may deem
proper. This section shall not be
construed to give the court authority to open the original decree of
registration, and nothing shall be done or ordered by the court [which] that
impairs the title or other interest of a purchaser holding a certificate for
value and in good faith, or the purchaser's heirs or assigns, without the
purchaser's or their written consent.
Any petition filed under this section and all petitions and motions filed under this chapter after original registration shall be filed and entitled in the original case in which the decree of registration was entered.
Notwithstanding the foregoing, the registrar or an assistant registrar shall accept for recordation and give effect to a duly completed and approved unlawful covenant removal form as provided by section 515-6, without hearing or court order."
SECTION 2. Chapter 502, Hawaii Revised Statutes, is amended by adding a new section to part XI, to be appropriately designated and to read as follows:
"§502- Removal of unlawful covenants. The bureau of conveyances shall accept for recordation and give effect to a duly completed and approved unlawful covenant removal form as provided by section 515-6, without hearing or court order."
SECTION 3. Section 515-6, Hawaii Revised Statutes, is amended to read as follows:
"§515-6 Restrictive covenants and
conditions[.]; removal of unlawful covenants. (a)
Every provision in an oral agreement or a written instrument relating to
real property that purports to forbid or restrict the conveyance, encumbrance,
occupancy, or lease thereof to individuals because of race, sex, including gender
identity or expression, sexual orientation, color, religion, marital status,
familial status, ancestry, disability, age, or human immunodeficiency virus
infection, is void.
(b) Every condition, restriction, or prohibition, including a right of entry or possibility of reverter, that directly or indirectly limits the use or occupancy of real property on the basis of race, sex, including gender identity or expression, sexual orientation, color, religion, marital status, familial status, ancestry, disability, age, or human immunodeficiency virus infection is void, except a limitation, on the basis of religion, on the use of real property held by a religious institution or organization or by a religious or charitable organization operated, supervised, or controlled by a religious institution or organization, and used for religious or charitable purposes.
(c) It is a discriminatory practice to insert in a written instrument relating to real property a provision that is void under this section or to honor or attempt to honor such a provision in the chain of title.
(d) The bureau of conveyances and office of the
assistant registrar of the land court of the State shall each promulgate and make
publicly available an unlawful covenant removal form. The purpose of this form shall be to remove from
conveyance instruments any covenants and conditions that are prohibited by this
section. There shall be no filing fee for
the recordation of this form. At minimum,
the form shall:
(1) State that restrictions
based on race, sex, including gender identity or expression, sexual
orientation, color, religion, marital status, familial status, ancestry,
disability, age, or human immunodeficiency virus infection are void;
(2) Provide a space
for the identification of the subject conveyance instrument;
(3) Provide a space
for the identification of the location of the unlawful covenant or covenants within
the conveyance instrument; and
(4) Provide a space for the office of the attorney general to indicate whether the identified covenant violates this section and whether the attorney general's office approves the requested removal as provided by subsection (g).
(e) If a person who holds or is acquiring an
ownership interest of record in real property that the person believes is subject
to a covenant or condition in violation of this section, then that person may record
a completed original of the unlawful covenant removal form prescribed by subsection
(d). A title company, escrow company,
real estate broker, real estate agent, or other person may also record the unlawful
covenant removal form.
(f) Beginning January 1, 2023, if a title company,
escrow company, or association has actual knowledge that a conveyance instrument
that it delivers directly to a person who holds an ownership interest of record
in property that is subject to a covenant or condition in violation of this section,
then the title company, escrow company, or association shall also provide to that
person a copy of the unlawful covenant removal form prescribed by subsection (d),
together with procedural information for appropriate processing along with the document.
(g) Notwithstanding any law to the contrary, an unlawful covenant removal form that is reviewed and approved by the office of the attorney general and recorded pursuant to this section shall remove the unlawful covenant from all property affected by the original covenant, regardless of who submits the modification. The attorney general or the attorney general's designee shall approve or disapprove the unlawful covenant removal form within a reasonable period time from submission, not to exceed three months."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Real Property; Prohibited Discrimination; Bureau of Conveyances; Office of the Assistant Registrar of the Land Court of the State of Hawaii; Land Title; Recordation; Attorney General
Description:
Establishes procedure to remove certain unlawful covenants and conditions from recorded conveyance instruments.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
