Bill Text: NY A02371 | 2009-2010 | General Assembly | Introduced

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Bill Title: An act to amend the real property law, in relation to recording of restrictive covenant modification documents

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Introduced - Dead) 2010-01-06 - referred to judiciary [A02371 Detail]

Download: New_York-2009-A02371-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2371
                              2009-2010 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 15, 2009
                                      ___________
       Introduced by M. of A. JEFFRIES -- read once and referred to the Commit-
         tee 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:
    1    Section  1.  The  real property law is amended by adding a new section
    2  291-i to read as follows:
    3    S 291-I. RECORDING OF RESTRICTIVE COVENANT MODIFICATION  DOCUMENT.  1.
    4  (A) IF ANY COVENANTS, CONDITIONS AND RESTRICTIONS EXIST IN A DOCUMENT TO
    5  BE  RECORDED  WHICH  DISCRIMINATE ON THE BASIS OF RACE, COLOR, RELIGION,
    6  GENDER, SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL STATUS, DISABILITY,
    7  NATIONAL ORIGIN, SOURCE OF INCOME,  SOCIO-ECONOMIC  STATUS  OR  ANCESTRY
    8  THEN  ANY  TITLE  INSURANCE  COMPANY,  TITLE  ABSTRACT COMPANY OR ESCROW
    9  COMPANY, SHALL:
   10    (I) NOTIFY IN AT LEAST EIGHTEEN-POINT BOLDFACE TYPE ON A SEPARATE PAGE
   11  WITHIN THE TITLE ABSTRACT REPORT TO THE PURCHASER/TITLE INSURANCE APPLI-
   12  CANT,  THE  FOLLOWING  LANGUAGE:   "THIS   DOCUMENT   CONTAINS   ILLEGAL
   13  RESTRICTIONS BASED ON RACE, COLOR, RELIGION, GENDER, SEXUAL ORIENTATION,
   14  FAMILIAL  STATUS, MARITAL STATUS, DISABILITY, NATIONAL ORIGIN, SOURCE OF
   15  INCOME, SOCIO-ECONOMIC STATUS OR ANCESTRY, THAT VIOLATE STATE AND FEDER-
   16  AL HOUSING LAW." THE PURCHASER/TITLE INSURANCE APPLICANT OF REAL PROPER-
   17  TY MAY HAVE SUCH ILLEGAL RESTRICTIONS  REMOVED  FROM  SUCH  DOCUMENT  BY
   18  SUBMITTING  A RESTRICTIVE COVENANT MODIFICATION DOCUMENT, WHICH SHALL BE
   19  AVAILABLE FROM THE COUNTY RECORDER, EITHER WITH THE DEED FOR  RECORDING,
   20  OR SEPARATELY;
   21    (II)  PROVIDE  THE  PURCHASER/TITLE INSURANCE APPLICANT WITH A LEGIBLE
   22  COPY OF THE ILLEGAL LANGUAGE ON A SEPARATE PAGE IN  THE  TITLE  ABSTRACT
   23  REPORT;
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02250-02-9
       A. 2371                             2
    1    (III)  PROVIDE  THE PURCHASER/TITLE INSURANCE APPLICANT WITH A COPY OF
    2  THE APPROPRIATE RESTRICTIVE COVENANT MODIFICATION DOCUMENT PRIOR  TO  OR
    3  AT THE CLOSING OF TITLE;
    4    (IV)  RECORD  THE  RESTRICTIVE  COVENANT  MODIFICATION DOCUMENT, WHICH
    5  PURCHASER  SHALL  PAY  THE   APPROPRIATE   FILING   FEES,   UNLESS   THE
    6  PURCHASER/TITLE INSURANCE APPLICANT OBJECTS IN WRITING.
    7    (B)  THIS  SECTION  SHALL  NOT  APPLY TO ANY LAWFUL RESTRICTIONS UNDER
    8  STATE AND FEDERAL HOUSING LAW.
    9    2. THE RESTRICTIVE COVENANT MODIFICATION DOCUMENT SHALL BE INDEXED  IN
   10  THE  SAME  MANNER  AS  ANY  PREVIOUSLY RECORDED DOCUMENT OR DOCUMENTS TO
   11  WHICH THE MODIFICATION DOCUMENT REFERS AND SHALL REFERENCE THE  ORIGINAL
   12  DOCUMENT  BY  BOOK AND PAGE OR INSTRUMENT NUMBER AND THE DATE OF RECORD-
   13  ING.
   14    3. SUBJECT TO COVENANTS, CONDITIONS, AND RESTRICTIONS  RECORDED  AFTER
   15  THE  ORIGINAL  DOCUMENT CONTAINING UNLAWFUL RESTRICTIONS, AND SUBJECT TO
   16  COVENANTS, CONDITIONS AND RESTRICTIONS RECORDED  AFTER  THE  RESTRICTIVE
   17  COVENANT  MODIFICATION  DOCUMENT, THE RESTRICTIVE COVENANT MODIFICATION,
   18  ONCE RECORDED, SHALL BE DEEMED THE ONLY RESTRICTIONS  HAVING  EFFECT  ON
   19  THE PROPERTY.
   20    4.  ANY  PERSON HOLDING AN OWNERSHIP INTEREST IN REAL PROPERTY THAT HE
   21  OR SHE BELIEVES IS SUBJECT TO  AN  UNLAWFULLY  RESTRICTIVE  COVENANT  IN
   22  VIOLATION OF STATE OR FEDERAL LAW PROHIBITING RESTRICTION BASED ON RACE,
   23  COLOR,  RELIGION,  GENDER,  SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL
   24  STATUS, DISABILITY, NATIONAL ORIGIN, SOURCE  OF  INCOME,  SOCIO-ECONOMIC
   25  STATUS  OR ANCESTRY MAY RECORD A RESTRICTIVE COVENANT MODIFICATION DOCU-
   26  MENT PURSUANT TO SUBDIVISION ONE OF THIS SECTION. SUCH  RECORDING  SHALL
   27  INCLUDE  A COMPLETE COPY OF THE ORIGINAL DOCUMENT CONTAINING THE ILLEGAL
   28  LANGUAGE WITH THE ILLEGAL LANGUAGE STRICKEN AND SHALL  BE  SIGNED  UNDER
   29  PENALTY OF LAW.
   30    5.  THE  COUNTY  RECORDER SHALL MAKE AVAILABLE TO THE PUBLIC FORMS FOR
   31  PREPARATION OF A RESTRICTIVE COVENANT MODIFICATION DOCUMENT.
   32    6. IF THE HOLDER OF AN OWNERSHIP INTEREST IN  PROPERTY  CAUSES  TO  BE
   33  RECORDED  A  RESTRICTIVE COVENANT MODIFICATION DOCUMENT PURSUANT TO THIS
   34  SECTION WHICH CONTAINS LANGUAGE NOT  AUTHORIZED  BY  THIS  SECTION,  ANY
   35  LIABILITY  WHICH DERIVES FROM SUCH RECORDING SHALL BE THE SOLE RESPONSI-
   36  BILITY OF THE HOLDER OF THE OWNERSHIP INTEREST OF RECORD AND THE  COUNTY
   37  RECORDER SHALL NOT INCUR ANY LIABILITY FOR RECORDING SUCH DOCUMENT.
   38    S 2. This act shall take effect on the one hundred eightieth day after
   39  it  shall have become a law; provided, however that effective immediate-
   40  ly, the addition, amendment and/or repeal  of  any  rule  or  regulation
   41  necessary  for  the implementation of this act on its effective date are
   42  authorized and directed to be made  and  completed  on  or  before  such
   43  effective date.