BILL NUMBER: S1728
SPONSOR: SANDERS
 
TITLE OF BILL:
An act to amend the real property law, in relation to requiring the
modification of restrictive covenants prior to the sale of real property
 
PURPOSE OR GENERAL OF BILL:
This bill would require sellers to remove illegal restrictive covenants
prior to the sale of real property which discriminate on the basis of
race, color, religion, sex, sexual orientation, familial status, marital
status, disability, national origin, source of income, or ancestry.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: If any covenants, 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: 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.
Section 2: Effective date.
 
JUSTIFICATION:
Under current law, there is no requirement for sellers of real property
to remove illegal restrictive covenants. While unenforceable, these
restrictive covenants are offensive and a residual of inhumane policies
of the past. The states of Virginia, Florida, Washington and Maryland
have enacted similar legislation.
The National Association of Realtors has stated that restrictive coven-
ants and other restrictions played a major part in today's lower levels
of Black homeownership. Government data from 2017 shows that white
homeownership was nearly 73% versus just 42% among Black people. In
December 2020, a group in Brighton, New York removed racial covenants
from deeds of nearly 300 homes that would prohibit the sale of proper-
ties to non-white buyers. This bill would require sellers to remove
illegal restrictive covenants prior to the sale of real property.
 
PRIOR LEGISLATIVE HISTORY:
2022 SENATE THIRD READING
2022 passed assembly
2021 REFERRED TO SENATE JUDICIARY 2021 assembly third reading
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
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.