Defines prohibited restrictive covenants contained in real property documents and requires the filing of a declaration when recording documents containing such covenants

Summary of specific provisions

The modification document shall be filed with the clerk of the county in which the real property is located, indexed in the same manner as any previously recorded document or documents to which the modification document refers. Subject to provisions in this bill, no written instrument hereafter made, relating to or affecting real property, shall contain any restrictive covenant.

Upon the transfer or sale of real property, or upon the occurrence of any other circumstances entailing the filing of a new deed pertaining to real property, whichever occurs first, the attorney, title insurance company or title insurance agent preparing the new deed shall remove from such deed all provisions or language prohibited by this bill, and shall also remove all such provisions or language from any associated contracts, security instruments or other documents involved in the tran- saction. Such attorney, title insurance company or title insurance agent shall, if necessary to give effect to this section, prepare a modifica- tion document as provided in this bill, to be signed by the owner of record or the prospective purchaser of the property, as applicable, and shall file the same at the time the new deed is filed.

Should a person who holds an ownership interest of record in real prop- erty he or she believes is the subject of a prohibited restrictive covenant in violation of this bill may, at any time prior to the sale of the property, record a document modifying the instrument containing the prohibited restrictive covenant. In this scenario the owner of the prop- erty shall be responsible for any filing fee, if any, associated with the filing of such document.

Justification

Currently in New York State there are still racial restrictive covenants on County records with language that would be offensive, illegal, and unenforceable such as, "No person of any race other than the white or Caucasian race shall use or occupy any building or any lot except that this covenant shall not prevent occupancy by domestic servants of a different race with an owner and tenant." These restrictive covenants will continue to remain public record until removed by the homeowner or at the time of transfer or sale of real property. The language in the covenants only serves as a reminder of the painful racist American history from which it was born, and as a stain

on the progressive legislative history of the State of New York. Other states such as California and Missouri have legislation concerning the eradication of restrictive covenants.

Prior legislative history

2011-12: S.1105A - Referred to judiciary

Similar legislation has been introduced in the past several years, but this bill serves to offer a remedy for restrictive covenants without placing undue fiscal or administrative burden on anyone party.

Fiscal implications

None to the state.

Effective date

This act shall take effect on the one hundred eightieth day after it shall have become a law; provided, however that effective immediately, the addition, amendment and/or repeal of any rule or regu- lation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.