November 27, 2018, Introduced by Rep. Singh and referred to the Committee on Judiciary.
A bill to prohibit the recording of deeds or other instruments
relating to real property that contain certain restrictive
covenants or conditions; to make such restrictions unenforceable;
and to provide remedies with respect to those instruments.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"prohibited restrictive covenants act".
Sec. 2. As used in this act:
(a) "Familial status" means that term as defined in section
103 of the Elliott-Larsen civil rights act, 1976 PA 453, MCL
37.2103.
(b) "Person" means an individual, partnership, corporation,
association, governmental entity, or other legal entity.
Sec. 3. (1) A person shall not record in the records of the
register of deeds a deed or other instrument that contains a
restriction, covenant, or condition, including a right of entry or
possibility of reverter, that directly or indirectly prohibits or
limits the conveyance, encumbrance, rental, occupancy, or use of
real property on the basis of race, sex, national origin, familial
status, sexual orientation, or gender identity, or on the basis of
an individual having a sensory, mental, or physical disability or
using a trained dog guide or service animal because the individual
is blind or deaf or has a physical disability.
(2) A register of deeds shall not record a deed or other
instrument described in subsection (1).
Sec. 4. (1) A restriction, covenant, or condition, including a
right of entry or possibility of reverter, that directly or
indirectly prohibits or limits the conveyance, encumbrance, rental,
occupancy, or use of real property on the basis of race, sex,
national origin, familial status, sexual orientation, or gender
identity, or on the basis of an individual having a sensory,
mental, or physical disability or using a trained dog guide or
service animal because the individual is blind or deaf or has a
physical disability, is void and has no legal effect.
(2) A court or other person shall not enforce a restriction,
covenant, or condition described in subsection (1).
Sec. 5. (1) A homeowners' or property owners' association,
acting through a simple majority vote of its board, may amend the
association's governing documents for the purpose of removing any
restriction, covenant, or condition, including a right of entry or
possibility of reverter, that directly or indirectly prohibits or
limits the conveyance, encumbrance, rental, occupancy, or use of
real property on the basis of race, sex, national origin, familial
status, sexual orientation, or gender identity, or on the basis of
an individual having a sensory, mental, or physical disability or
using a trained dog guide or service animal because the individual
is blind or deaf or has a physical disability.
(2) If the board of a homeowners' or property owners'
association receives a written request by a member of the
association that the board exercise its amending authority under
subsection (1), the board shall, within a reasonable time, amend
the governing documents, as provided under this section.
(3) Board action under this section does not require the vote
or approval of the property owners.
(4) An amendment under subsection (1) may be executed by any
board officer.
(5) An amendment under subsection (1) must be recorded with
the register of deeds for the county where the property is located
and state the following:
"This amendment strikes from these restrictions, covenants, and
conditions the provisions that are prohibited under the prohibited
restrictive covenants act. Specifically, this amendment strikes the
provisions that directly or indirectly prohibit or limit the
conveyance, encumbrance, rental, occupancy, or use of the property
on the basis of race, sex, national origin, familial status, sexual
orientation, or gender identity, or on the basis of an individual
having a sensory, mental, or physical disability or using a trained
dog guide or service animal because the individual is blind or deaf
or has a physical disability."
Sec. 6. (1) A property owner may record in the records of the
register of deeds for the county where the property is located an
amended deed or other instrument to remove any restriction,
covenant, or condition, including a right of entry or possibility
of reverter, that directly or indirectly prohibits or limits the
conveyance, encumbrance, rental, occupancy, or use of real property
on the basis of race, sex, national origin, familial status, sexual
orientation, or gender identity, or on the basis of an individual
having a sensory, mental, or physical disability or using a trained
dog guide or service animal because the individual is blind or deaf
or has a physical disability.
(2) An amended deed or other instrument under this section may
be executed solely by the property owner. The deed or instrument
must be executed and acknowledged in the manner required by law.
(3) An amended deed or other instrument under this section
must state the following:
"This amended instrument strikes from an original instrument
restrictions, covenants, or conditions that are prohibited under
the prohibited restrictive covenants act. Specifically, this
amended instrument strikes the provisions that directly or
indirectly prohibit or limit the conveyance, encumbrance, rental,
occupancy, or use of the property on the basis of race, sex,
national origin, familial status, sexual orientation, or gender
identity, or on the basis of an individual having a sensory,
mental, or physical disability or using a trained dog guide or
service animal because the individual is blind or deaf or has a
physical disability."
Sec. 7. (1) If a deed or other instrument contains a provision
that is prohibited under this act, the owner, occupant, or tenant
of the property that is subject to the provision or any member of
the board of a homeowners' or property owners' association that
would have a right to enforce such a provision may bring an action
in the circuit court in the county in which the property is located
to have the provision stricken from the records of the register of
deeds.
(2) An action under this section must be brought as an in rem,
declaratory judgment action and the title of the action must be the
description of the property. The owners, occupants, or tenants of
the property or any part of the property are necessary parties to
the action.
(3) In an action under this section, if the court finds that
any provisions of the deed or instrument are prohibited under this
act, it shall enter an order striking the provisions from the
records of the register of deeds and eliminating the provisions
from the deed or other instrument for the property described in the
complaint.
Sec. 8. A person that refuses, before recording, to remove
from a deed or other instrument a restriction, covenant, or
condition, including a right of entry or possibility of reverter,
that directly or indirectly prohibits or limits the conveyance,
encumbrance, rental, occupancy, or use of real property on the
basis of race, sex, national origin, familial status, sexual
orientation, or gender identity, or on the basis of an individual
having a sensory, mental, or physical disability or using a trained
dog guide or service animal because the individual is blind or deaf
or has a physical disability is liable for any damage sustained by
another person because of the refusal.
Sec. 9. (1) Except as otherwise provided in section 5(2), this
act does not create a duty on the part of an owner, occupant,
tenant, association, board, or member or officer of a board to
amend a recorded deed or instrument or a governing document as
provided in this act, or to bring an action as authorized under
this act.
(2) An owner, occupant, tenant, association, board, or member
or officer of a board is not liable for failing to amend a recorded
deed or instrument or a governing document or to pursue an action
in court as authorized under this act.
(3) This act does not limit any right or remedy under the
Elliott-Larsen civil rights act, 1976 PA 453, MCL 37.2101 to
37.2804, or any other law of this state.