New YorkA 18202025-2026 Regular SessionHouseWALLET

Requires the modification of restrictive covenants prior to the sale of real property

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

Owners and HOAs must remove discrimination

Starting 180 days after enactment, any owner who believes their property has an unlawful restrictive covenant can record a modification. The filing must include the full original document with the illegal words struck out and be signed under penalty of law. Condo, co‑op, and homeowners association boards must delete or amend discriminatory covenants within one year of the law’s effective date, and they do not need an owner vote. Lawful restrictions allowed by state or federal law stay in place.

How modification filings take effect

Starting 180 days after enactment, a recorded modification must cite the original document by book and page or instrument number and date, and it is indexed the same way. Once recorded, the modification becomes the controlling restriction on the property, subject to any later‑recorded covenants. County recorders must provide public forms for these filings. Agencies may set rules needed to carry out the law before the effective date.

Owners liable for bad filings

Starting 180 days after enactment, if you record a modification with language the law does not allow, you alone are liable for any harm. The county recorder is not liable for accepting that filing.

Sellers must clear biased covenants

Starting 180 days after enactment, sellers must remove any discriminatory covenants before recording a sale. This covers language that discriminates by race, color, religion, sex, sexual orientation, familial or marital status, disability, national origin, source of income, or ancestry. The seller submits a restrictive covenant modification with the deed (or separately) and gives a copy to the buyer or title insurance applicant before or at closing. The seller does not pay a filing fee for this modification.

Sponsors & Cosponsors

Sponsor

Phil Steck
Democratic • House

Cosponsors

Angelo Santabarbara
Democratic • House
Dana Levenberg
Democratic • House
Jonathan Jacobson
Democratic • House
Pamela J. Hunter
Democratic • House
Sarah Clark
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 47 • No: 12

House vote • 6/11/2025

FLOOR Vote