A2560A-2011 Actions

• Jan 13, 2012: print number 2560a
• Jan 13, 2012: amend and recommit to judiciary
• Jan 4, 2012: referred to judiciary
• Jan 19, 2011: referred to judiciary

A2560A-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 2560--A
 2011-2012 Regular Sessions
 I N  ASSEMBLY
 January 19, 2011
 
 Introduced  by M. of A. TITUS, ROBINSON, LAVINE -- Multi-Sponsored by -
 M. of A.  WEISENBERG -- read once and referred  to  the  Committee  on
 Judiciary  --  recommitted to the Committee on Judiciary in accordance
 with Assembly Rule 3, sec. 2 -- committee  discharged,  bill  amended,
 ordered reprinted as amended and recommitted to said committee
 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:

 

Section  1.  The  real property law is amended by adding a new section
 291-j to read as follows:

 

S 291-J. 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 APPLI
 CANT,  THE  FOLLOWING  LANGUAGE:   "THIS   DOCUMENT   CONTAINS   ILLEGAL
 RESTRICTIONS BASED ON RACE, COLOR, RELIGION, SEX, FAMILIAL STATUS, MARI
 TAL  STATUS, DISABILITY, NATIONAL ORIGIN, SOURCE OF INCOME, OR ANCESTRY,
 THAT VIOLATE STATE AND FEDERAL HOUSING LAW." THE PURCHASER/TITLE  INSUR
 ANCE  APPLICANT  OF  REAL  PROPERTY  MAY  HAVE SUCH ILLEGAL RESTRICTIONS
 REMOVED FROM SUCH DOCUMENT BY SUBMITTING A RESTRICTIVE COVENANT  MODIFI
 CATION  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;
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02154-04-2
 
       A. 2560--A                          2
 (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;
 (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 RECORD
 ING.
 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  RESPONSI
 BILITY  OF THE HOLDER OF THE OWNERSHIP INTEREST OF RECORD AND THE COUNTY
 RECORDER SHALL NOT INCUR ANY LIABILITY FOR RECORDING SUCH DOCUMENT.
 

S 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law; provided, however that effective  immediate
 ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
 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.

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