NY State Senate Bill 2019-S4964

Senate Bill S4964

2019-2020 Legislative Session

Provides for the recordation of restrictive covenant modification documents where conveyance instruments include language violative of civil rights laws

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Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to judiciary
Apr 02, 2019	referred to judiciary

co-Sponsors

2019-S4964 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §291-k, RP L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S1933
2011-2012: S1095
2013-2014: S1844
2015-2016: S2528
2017-2018: S2352
2021-2022: S5276
2023-2024: S6767

2019-S4964 (ACTIVE) - Summary

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.

2019-S4964 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4964

SPONSOR: PARKER
 
TITLE OF BILL:  An act to amend the real property law, in relation to
recording of restrictive covenant modification documents

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide a mechanism to allow homeowners to remove current offensive,
illegal and racist covenants that restrict owners from selling or
conveying to any person based on one's race, color, religion, sex, fami-
lial status, disability, national origin, source of income, or ancestry
that violates state and federal housing law.

 
SUMMARY SPECIFIC PROVISIONS:

This bill would require any title insurance company, title abstract
company, or escrow company to inform the buyer of a property whether the
property in question contains a restrictive covenant based on race,
color, religion, sex, familial status, marital status, disability,
national origin, source of income, or ancestry that violates state and

federal housing law.

This bill would also provide a process to remove said offensive and
racist language from the public record. Then, the person who holds an
ownership interest of record in property can record a document to delete
the illegal restrictive covenant from the county record.

 
JUSTIFICATION:

Currently in New York State, there are still racial restrictive coven-
ants on County records and such language such as, "No persons 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 occupan-
cy by domestic servants of a different race with an owner and tenant."
It is still in existence in certain communities, such as Chappaqua and
Nassau County. The Supreme Court ruled against racially restrictive
covenants in 1948, and they were outlawed by the Federal Fair Housing
Act of 1968. Nevertheless, these racially restrictive covenants remain a
part of the county records, and will continue to remain in the public
record until removed by the home owner. Title companies do not show this
language to buyers during their searches since they are legally unen-
forceable. Thus, most buyers do not know about its existence. However,
the language should be removed from the public records because it is
offensive, illegal, unenforceable, and only serves as a reminder of the
painful racist American history, and as a stain on the progressive
legislative history of the State of New York. Other States such as Cali-
fornia and Missouri have either passed or introduced bills to eliminate
the racist language from the records.

 
PRIOR LEGISLATIVE HISTORY:

2017-18: S2352 - Referred to Judiciary
2015-2016:S.2528/A.3260 -Referred to Judiciary
2013-2014:S.1844/A.1984-Referred to Judiciary
2011-2012:S.1095A/A.2560A- Referred to Judiciary
2009-2010:S.1933
2007-2008:S.1984
2005-2006:S.8134
 
FISCAL IMPLICATION:

To be determined.

 
EFFECTIVE DATE:
This act will 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 regulation neces-
sary 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.

2019-S4964 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4964
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               April 2, 2019
                                ___________
 
 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:
 
   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 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;
   (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

 S. 4964                             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 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.
   § 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.

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Senate Bill S4964

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Sponsored By

Kevin S. Parker