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