Bill Text: NY S05276 | 2021-2022 | General Assembly | Introduced

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Bill Title: Provides for notice of illegal restrictive covenant language in documents to be recorded and the recordation of restrictive covenant modification documents where conveyance instruments include language violative of civil rights laws; requires any title insurance company, title abstract company or escrow company to include such notice in title abstract reports and to inform purchaser/title insurance applicants of the availability from the county recorder of restrictive covenant modification documents.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO JUDICIARY [S05276 Detail]

Download: New_York-2021-S05276-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5276

                               2021-2022 Regular Sessions

                    IN SENATE

                                      March 1, 2021
                                       ___________

        Introduced  by  Sens. PARKER, KRUEGER -- read twice and ordered printed,
          and when printed to be committed to the Committee 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:

     1    Section 1. The real property law is amended by adding  a  new  section
     2  291-k to read as follows:
     3    §  291-k.  Recording of restrictive covenant modification document. 1.
     4  (a) If any covenants, conditions and restrictions exist in a document to
     5  be recorded which discriminate on the basis of  race,  color,  religion,
     6  sex,  familial  status,  marital  status,  disability,  national origin,
     7  source of income, or ancestry then any title  insurance  company,  title
     8  abstract company or escrow company, shall:
     9    (i) notify in at least eighteen-point boldface type on a separate page
    10  within the title abstract report to the purchaser/title insurance appli-
    11  cant,   the   following   language:   "This  document  contains  illegal
    12  restrictions based on race, color, religion, sex, familial status, mari-
    13  tal status, disability, national origin, source of income, or  ancestry,
    14  that  violate state and federal housing law." The purchaser/title insur-
    15  ance applicant of real  property  may  have  such  illegal  restrictions
    16  removed  from such document by submitting a restrictive covenant modifi-
    17  cation document, which shall be  available  from  the  county  recorder,
    18  either with the deed for recording, or separately;
    19    (ii)  provide  the  purchaser/title insurance applicant with a legible
    20  copy of the illegal language on a separate page in  the  title  abstract
    21  report;
    22    (iii)  provide  the purchaser/title insurance applicant with a copy of
    23  the appropriate restrictive covenant modification document prior  to  or
    24  at the closing of title;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09312-01-1
        S. 5276                             2

     1    (iv)  record  the  restrictive  covenant  modification document, which
     2  purchaser  shall  pay  the   appropriate   filing   fees,   unless   the
     3  purchaser/title insurance applicant objects in writing.
     4    (b)  This  section  shall  not  apply to any lawful restrictions under
     5  state and federal housing law.
     6    2. The restrictive covenant modification document shall be indexed  in
     7  the  same  manner  as  any  previously recorded document or documents to
     8  which the modification document refers and shall reference the  original
     9  document  by  book and page or instrument number and the date of record-
    10  ing.
    11    3. Subject to covenants, conditions, and restrictions  recorded  after
    12  the  original  document containing unlawful restrictions, and subject to
    13  covenants, conditions and restrictions recorded  after  the  restrictive
    14  covenant  modification  document, the restrictive covenant modification,
    15  once recorded, shall be deemed the only restrictions  having  effect  on
    16  the property.
    17    4.  Any  person holding an ownership interest in real property that he
    18  or she believes is subject to  an  unlawfully  restrictive  covenant  in
    19  violation of state or federal law prohibiting restriction based on race,
    20  color,  religion,  sex,  familial  status,  marital  status, disability,
    21  national origin, source of income, or ancestry may record a  restrictive
    22  covenant  modification  document  pursuant  to  subdivision  one of this
    23  section. Such recording shall include a complete copy  of  the  original
    24  document  containing  the  illegal  language  with  the illegal language
    25  stricken and shall be signed under penalty of law.
    26    5. The county recorder shall make available to the  public  forms  for
    27  preparation of a restrictive covenant modification document.
    28    6.  If  the  holder  of an ownership interest in property causes to be
    29  recorded a restrictive covenant modification document pursuant  to  this
    30  section  which  contains  language  not  authorized by this section, any
    31  liability which derives from such recording shall be the sole  responsi-
    32  bility  of the holder of the ownership interest of record and the county
    33  recorder shall not incur any liability for recording such document.
    34    § 2. This act shall take effect on the one hundred eightieth day after
    35  it shall have become a law. Effective immediately, the addition,  amend-
    36  ment and/or repeal of any rule or regulation necessary for the implemen-
    37  tation  of  this act on its effective date are authorized to be made and
    38  completed on or before such effective date.