NEW YORK NOW REQUIRES SELLERS TO REMOVE DISCRIMINATORY DEED LANGUAGE

New York Real Property Law § 327-a requires anyone selling real estate within New York to remove old, discriminatory language from the property’s records upon sale. This covers covenants, restrictions, or conditions based on “race, color, religion, sex, sexual orientation, familial status, marital status, disability, national origin, source of income, or ancestry.” The rule applies to both commercial and residential properties.

While these discriminatory clauses haven’t been legally enforceable for decades, many still appear in old deeds and public records. The new law is meant to finally erase them for good. To streamline this process, county recording offices must provide sample forms and are prohibited from charging a recording fee to file the change.

However, the law leaves a few critical questions unanswered: it doesn’t spell out penalties or liability for failing to comply, it doesn’t explain how the requirement will be enforced, and it doesn’t clarify whether sellers have an affirmative duty to search for this language in the first place. Because of these uncertainties, the terms of your purchase and sale contracts matter now more than ever.

If you have questions about how this affects an upcoming transaction or client, we’re happy to help.