New York Real Property Law § 327-a: Removing Discriminatory C&R’s from Property Records
Effective June 3, 2026, New York Real Property Law § 327-a establishes a process for modifying recorded or recordable real estate documents that contain unlawful discriminatory restrictions.
Although discriminatory covenants are generally unenforceable under state and federal law, outdated language may still appear in older deeds, declarations, bylaws, covenants, and other recorded instruments. Section 327-a is designed to address that issue directly by creating a procedure to remove unlawful restrictive language from the public record.
What qualifies as an unlawful restriction?
Section 327-a applies to a covenant, condition, or restriction that unlawfully discriminates based on a protected class in violation of state or federal law.
For housing purposes, the protected classes under New York Executive Law § 296 include:
Race, creed, color, national origin, citizenship or immigration status, sexual orientation, gender identity or expression, military status, sex, age, disability, marital status, status as a victim of domestic violence, lawful source of income, and familial status.
The law is aimed specifically at unlawful discriminatory language. It does not eliminate lawful covenants, conditions, restrictions, easements, use limitations, architectural controls, or other private restrictions that are otherwise valid under state or federal law.
What sellers need to know
If a document to be recorded contains an unlawful restriction, the seller must take steps to remove it through a Restrictive Covenant Modification.
The seller must submit and record the modification document and provide a copy to the purchaser or title insurance applicant before or at closing. The statute also provides that the seller is not required to pay a filing fee for recording the modification.
From a transaction standpoint, this makes early document review important. Older deeds, declarations, and related recorded instruments should be reviewed before closing so that any required modification can be addressed without delaying the transaction.
Requirements for condos, co-ops, and homeowners associations
Section 327-a also creates obligations for condominium boards, cooperative boards, and homeowners associations.
Within one year of the law’s effective date, these entities must delete or amend unlawful restrictions contained in recorded documents. Because the law became effective on June 3, 2026, boards and associations should treat June 3, 2027 as the key compliance deadline.
The statute further provides that these amendments are not subject to owner approval, which should allow boards and associations to address unlawful language without waiting for a vote of the full ownership or membership.
Rights of individual property owners
The law also gives individual property owners a way to address unlawful restrictions in their own chain of title.
A person with an ownership interest in real property may record a Restrictive Covenant Modification if they believe the property is subject to an unlawful restriction. The modification must include a complete copy of the original document with the unlawful language stricken and must be signed under penalty of law.
This allows owners to address discriminatory language even when the issue does not arise in connection with a sale or closing.
County recording process
County recording offices are required to make forms available for preparing Restrictive Covenant Modifications. Please check with the County Clerk in which your property is located in to obtain a copy of their Restrictive Covenant Modification form.
The modification document must reference the original recorded instrument by book and page number or instrument number and recording date. It must also be indexed in the same manner as the document it modifies, allowing the modification to appear in the land records alongside the original instrument.
How we will treat Restrictive Covenant Modifications in title searches
As Restrictive Covenant Modifications begin appearing in the land records, we will reflect them in our title searches when they are identified.
This means that when a recorded modification is picked up in the search, it will be shown so that purchasers, lenders, attorneys, and other parties are aware that an unlawful restrictive covenant has been modified of record.
Liability considerations
Section 327-a includes an important liability provision. If a property owner records a modification containing language not authorized by the statute, any liability arising from that recording is the responsibility of the property owner, not the county recording office.
For that reason, anyone preparing a Restrictive Covenant Modification should be careful to remove only the unlawful discriminatory restriction and avoid making broader changes to property rights, covenants, or restrictions.
Practical takeaways
Section 327-a creates a new compliance consideration for real estate transactions, community associations, and property owners. Sellers, boards, managing agents, brokers, title professionals, and attorneys should begin reviewing older recorded documents for unlawful restrictive language.
Key action items include:
Reviewing older deeds, declarations, bylaws, covenants, and recorded amendments.
Updating closing checklists to account for potential Restrictive Covenant Modifications.
Coordinating with title professionals and county recording offices on recording requirements.
Advising condominium, cooperative, and HOA boards to review governing documents before the June 3, 2027 compliance deadline.
Seeking legal guidance before preparing or recording any modification document.
Section 327-a reflects a broader effort to ensure that discriminatory language is not simply unenforceable, but affirmatively removed from New York’s real property records.