What's happening
This bill requires title companies to notify buyers of discriminatory covenants in property documents and provides a process for modifying and removing such illegal language from the records.
Why it matters
Empowers homebuyers and property owners. by ensuring they are notified if a property’s records contain illegal, discriminatory restrictions, so they can address and remove offensive or unlawful language tied to their property.
Creates a standardized, accessible process. for modifying or removing discriminatory covenants, reducing bureaucratic hurdles and making it simpler for individuals to clear outdated and illegal restrictions from property records.
Increases transparency and accountability. in real estate transactions by requiring title companies to provide copies of illegal language and modification documents, ensuring buyers are fully informed and have the practical means to rectify past discrimination.
Clarifies legal responsibilities and protections. by placing liability for unauthorized changes on the property owner, not the county recorder, and by mandating that modification forms are made publicly available, promoting both legal clarity and public access.
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Who cares
Title insurance, title abstract and escrow companies
They would have to flag discriminatory restrictions, provide buyers with the offending language and modification forms, and record modifications unless buyers object in writing.
Property buyers and title insurance applicants
They would receive notice of illegal restrictions and pay filing fees for modification documents unless they object in writing to recording them.
Property owners
They could record documents striking unlawful restrictions but would bear sole responsibility for liability arising from unauthorized language in modifications they cause to be recorded.
County recorders
They would have to make modification forms available and index recorded modifications with references to the original documents, without liability for recording modifications containing unauthorized language.
Headline styles
Remove Illegal Housing Restrictions
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Enacting clause stricken
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Remove Discriminatory Housing Language
In Senate Committee · Judiciary · Sponsor Kevin S. Parker
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4992
2019-2020 Regular Sessions
IN ASSEMBLY
February 6, 2019
Introduced by M. of A. TITUS, LAVINE -- read once and referred 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 Assembly, 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 applicant, the following language: "This document contains illegal restrictions based on race, color, religion, sex, familial status, marital status, disability, national origin, source of income, or ancestry, that violate state and federal housing law." The purchaser/title insurance applicant of real property may have such illegal 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/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.
LBD07719-01-9
A. 4992 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 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, 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 responsibility 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, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.