2023 Pennsylvania Consolidated & Unconsolidated Statutes
Act 54 - REAL AND PERSONAL PROPERTY (68 PA.C.S.) - REPUDIATION OF DISCRIMINATORY REAL ESTATE COVENANTS
Session of 2023
No. 2023-54
HB 1289
AN ACT
Amending Title 68 (Real and Personal Property) of the Pennsylvania Consolidated Statutes, in residential real property, providing for repudiation of discriminatory real estate covenants.
The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:
Section 1. Title 68 of the Pennsylvania Consolidated Statutes is amended by adding a chapter to read:
CHAPTER 74
REPUDIATION OF DISCRIMINATORY
REAL ESTATE COVENANTS
Sec.
7401. Scope of chapter.
7402. Definitions.
7403. Nullification of existing unlawful restrictive covenants.
7404. Repudiation of unlawful restrictive covenants.
7405. Form for repudiation.
7406. Unlawful restrictive covenants in declarations of common interest ownership communities.
7407. Unlawful restrictive covenants not in declarations of common interest ownership communities.
§ 7401. Scope of chapter.
This chapter relates to real estate covenants that discriminate against individuals.
§ 7402. Definitions.
The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:
"Board." The executive board or board of directors of a common interest ownership community.
"Common interest ownership community." Includes:
(1) A condominium as defined in section 3103 (relating to definitions).
(2) A cooperative as defined in section 4103 (relating to definitions).
(3) A planned community as defined in section 5103 (relating to definitions).
"Department." The Department of Community and Economic Development of the Commonwealth.
"Instrument." A deed, mortgage, declaration of restrictive covenants, conditions or covenants, easement or other similar document.
"Recorder." As follows:
(1) A county recorder of deeds or a county official or department responsible for the recording of documents in a county without a recorder of deeds.
(2) The term includes the Philadelphia Department of Records and the Allegheny County Department of Real Estate.
"Unlawful restrictive covenant." A covenant or other provision that purports to restrict ownership or occupancy of real property on the basis of a practice or policy of discrimination against individuals or groups covered under the act of October 27, 1955 (P.L.744, No.222), known as the Pennsylvania Human Relations Act, or 42 U.S.C. Ch. 45 (relating to fair housing) or which may hereafter become a protected class under Federal or State law. The term does not include a covenant or restriction affixed to a property by a religious organization that prevents the use of the property for purposes that would offend that religious organization or an age-based covenant or restriction intended to create a senior living community.
§ 7403. Nullification of existing unlawful restrictive covenants.
(a) Unenforceable covenants.--An unlawful restrictive covenant contained in an instrument affecting title to real property, whether or not recorded, in this Commonwealth shall be null, void and unenforceable ab initio without need for further action by any person or recorder.
(b) Combined covenants.--If an unlawful restrictive covenant is contained in an instrument affecting title to real property that also contains other covenants or provisions that are not an unlawful restrictive covenant, the validity and enforceability of the remaining covenants or provisions, as well as the validity of the recorded instrument, shall not be affected by the nullification, voiding and unenforceability of the unlawful restrictive covenant.
§ 7404. Repudiation of unlawful restrictive covenants.
(a) Landowner may file form.--An owner of real property, including a common interest ownership community, with an unlawful restrictive covenant recorded in the instrument may file a form described in section 7405 (relating to form for repudiation) with the recorder in the county where the real property is located to repudiate the unlawful restrictive covenant.
(b) Electronic filing.--A form filed under subsection (a) shall be in writing and may be filed electronically if the county allows for electronic recording of deeds.
(c) Duty of recorder.--The recorder shall record the form submitted under subsection (a).
(d) Fees prohibited.--A recorder may not assess a fee for the filing of a form under this section.
(e) Separation of covenant from instrument.--When the form submitted under subsection (a) is properly recorded, the repudiation of the unlawful restrictive covenant is effective and does not affect the validity of the instrument. The instrument shall be construed as if the unlawful restrictive covenant was never contained in the instrument.
§ 7405. Form for repudiation.
(a) Development.--No later than 90 days after the effective date of this section, the department shall develop and release a standardized form for landowners or other persons with an interest in real property to file with the recorder to repudiate an unlawful restrictive covenant within the interested person's instrument.
(b) Distribution.--No later than 30 days after the standardized form required in subsection (a) is approved in final form by the department, the department shall provide a "Repudiation of Unlawful Restrictive Covenant" form to each recorder in this Commonwealth and publish the form on the department's publicly accessible Internet website.
§ 7406. Unlawful restrictive covenants in declarations of common interest ownership communities.
(a) Board vote for removal.--Notwithstanding any other provision of law, a board of a common interest ownership community may, upon receipt of an opinion by independent legal counsel, consider an unlawful restrictive covenant to be repudiated by a vote of a majority of the members of the board and without further need for a vote by unit owners or approval from lenders on individual units, thereby repudiating the unlawful restrictive covenant.
(b) Unit owner request for repudiation.--If a unit owner in a common interest ownership community submits a written request to the board to repudiate an unlawful restrictive covenant, the board shall, no later than 90 days after receipt of the request, hold a meeting to determine whether an unlawful restrictive covenant exists and should be repudiated. If the board finds that an unlawful restrictive covenant exists and should be repudiated, the board shall take swift action to record the repudiation form.
§ 7407. Unlawful restrictive covenants not in declarations of common interest ownership communities.
If an instrument in the chain of title to the common elements in a condominium, in the common facilities or controlled facilities in a planned community or in the chain of title to a real estate cooperative includes an unlawful restrictive covenant, the board may perform a landowner repudiation in accordance with section 7404 (relating to repudiation of unlawful restrictive covenants).
Section 2. This act shall take effect as follows:
(1) The following shall take effect immediately:
(i) The addition of 68 Pa.C.S. §§ 7402 and 7403.
(ii) This section.
(2) The remainder of this act shall take effect in 60 days.
APPROVED--The 14th day of December, A.D. 2023.
JOSH SHAPIRO
