S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6152--A
                                                            R. R. 337
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 10, 2021
                                ___________
 
 Introduced  by M. of A. STECK -- read once and referred to the Committee
   on Judiciary -- reported and referred to the  Committee  on  Rules  --
   ordered  to  third reading amended on the special order of third read-
   ing, ordered reprinted as amended, retaining its place on the  special
   order of third reading
 
 AN  ACT  to  amend  the  real property law, in relation to requiring the
   modification of restrictive covenants prior to the sale of real  prop-
   erty
 
   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
 327-a to read as follows:
   §  327-A.  MODIFICATION OF RESTRICTIVE COVENANTS. 1. (A) IF ANY COVEN-
 ANTS, CONDITIONS AND RESTRICTIONS EXIST IN A  DOCUMENT  TO  BE  RECORDED
 WHICH  DISCRIMINATE  ON  THE BASIS OF RACE, COLOR, RELIGION, SEX, SEXUAL
 ORIENTATION,  FAMILIAL  STATUS,  MARITAL  STATUS,  DISABILITY,  NATIONAL
 ORIGIN, SOURCE OF INCOME, OR ANCESTRY, ANY SELLER SHALL:
   (I)  HAVE  SUCH  UNLAWFUL  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 OR TITLE INSURANCE APPLICANT WITH A COPY OF
 THE APPROPRIATE RESTRICTIVE COVENANT MODIFICATION DOCUMENT PRIOR  TO  OR
 AT THE CLOSING OF TITLE;
   (III)  RECORD THE RESTRICTIVE COVENANT MODIFICATION DOCUMENT, HOWEVER,
 SUCH SELLER SHALL NOT BE REQUIRED TO PAY FILING FEES FOR  THE  RECORDING
 OF THE RESTRICTIVE COVENANT MODIFICATION DOCUMENT.
   (B)  WITHIN  ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE BOARD
 OF MANAGERS OF A CONDOMINIUM, THE BOARD OF DIRECTORS  OF  A  COOPERATIVE
 APARTMENT  CORPORATION OR A HOMEOWNERS ASSOCIATION IF SUCH REAL PROPERTY
 IS SUBJECT TO THE RULES AND REGULATIONS OF SUCH  AN  ASSOCIATION,  SHALL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD09514-02-1

 A. 6152--A                          2
 
 DELETE OR AMEND ANY COVENANTS, CONDITIONS AND RESTRICTIONS THAT EXIST IN
 A  RECORDED  DOCUMENT  WHICH  DISCRIMINATE  ON THE BASIS OF RACE, COLOR,
 RELIGION, SEX, SEXUAL  ORIENTATION,  FAMILIAL  STATUS,  MARITAL  STATUS,
 DISABILITY,  NATIONAL  ORIGIN,  SOURCE  OF  INCOME,  OR  ANCESTRY.  SUCH
 DELETIONS OR AMENDMENTS SHALL NOT BE SUBJECT TO THE APPROVAL OF PROPERTY
 OWNERS.
   (C) THIS SECTION SHALL NOT APPLY  TO  ANY  LAWFUL  RESTRICTIONS  UNDER
 STATE AND FEDERAL 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 NUMBER 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,  SEXUAL  ORIENTATION,  FAMILIAL  STATUS,  MARITAL
 STATUS,  DISABILITY,  NATIONAL ORIGIN, SOURCE OF INCOME, OR ANCESTRY MAY
 RECORD A RESTRICTIVE COVENANT MODIFICATION DOCUMENT PURSUANT TO SUBDIVI-
 SION ONE OF THIS SECTION.  SUCH RECORDING SHALL INCLUDE A COMPLETE  COPY
 OF  THE  ORIGINAL  DOCUMENT  CONTAINING  THE  UNLAWFUL LANGUAGE WITH THE
 UNLAWFUL 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.