Missouri 2022 2022 Regular Session

Missouri House Bill HB1662 Comm Sub / Analysis

Filed 02/25/2022

                    HCSHB1662--PROHIBITEDRESTRICTIVECOVENANTS
SPONSOR: Fishel
COMMITTEEACTION:Voted"DoPasswithHCSbyConsent"bythe
StandingCommitteeonJudiciarybyavoteof8to0.
ThefollowingisasummaryoftheHouseCommitteeSubstituteforHB
1662.
ThisbillprohibitsanydeedrecordedafterAugust28,2022,from
containingareferencetoaspecificportionofarestrictive
covenantthatrelatestotherace,color,religion,ornational
originofanyperson.Therecorderofdeedscanrefusetorecord
thedeed.
Anownerofrealpropertysubjecttoarestrictivecovenantthat
relatestotherace,color,religion,ornationaloriginofany
personcanreleaseitbyfilingacertificateofreleaseof
prohibitedcovenantswiththerecorderofdeedseitherpriorto
recordingadeedofconveyanceofsuchpropertyorupondiscovering
thattheprohibitedcovenantexists.
Acertificatedoesnotneedtobepreparedbyanattorneyifit
substantiallyconformstothetemplatesetoutinstatute.
PROPONENTS: Supporterssaythattherecordercanrefusetorecord
aprohibitedcovenantthatisbasedondiscriminatory reasons.
Priorto1950s,propertieshadcovenantsthatprohibitedrentingor
sellingtopeoplebasedonraceorreligionorsexorafewother
things.ButthentheSupremeCourtfoundthattobeillegalasa
violationofthe14thAmendment. Missouripassedasectionthat
madethosecovenantsnullandvoid,buttheyhavenotbeenremoved
fromthedeeds.Thisbillwouldallowownerstohavethecovenant
removedanditcouldbartherecorderfromrecordingsucha
covenantinanewdeed.Anattorneycanprepareadeedfilingand
therehasbeenanagreementwiththerecordersassociationfora
nominalfeetomakesucharecording. Thisisanimportant,good
governmentcleanupbecauseitisnotenforceableanywaysomightas
wellcleanupthebooks.
TestifyingforthebillwereRepresentative Fishel;ShariAsher;
ArnieC.Dienoff;MissouriAssociationOfRealtors;andthe
Recorders'AssociationofMissouri.
OPPONENTS: Therewasnooppositionvoicedtothecommittee.
Writtentestimonyhasbeensubmittedforthisbill.Thefull writtentestimonycanbefoundunderTestimonyonthebillpageon
theHousewebsite.