Restrictive Covenant Modification Form
AB 1466 adds a requirement that a Restrictive Covenant Modification form, and procedural information about the form, be included with any declaration, governing document or deed delivered by an association to an association member. We believe the intent was that this new form, and procedural information, only be included with copies of recorded governing documents (i.e., the recorded declaration). But, as drafted, the requirement arguably applies to any governing document delivered by an association to an owner. This new requirement is found at Government Code Section 12956.1(b)(3), and the form itself can be found at Government Code Section 12956.2(f). County recorder offices are supposed to have a copy of the form, as well as procedural information about the form, available to the public. Many county recorder offices already have copies of the form on their websites. See example here.
The Restrictive Covenant Modification form provides an avenue for an owner, prospective buyer, title company, escrow company, county recorder, real estate broker, real estate agent or other person to record a form redacting an unlawful discriminatory provision from a recorded governing document. There are procedural hurdles that would have to be cleared before a person or entity can record the form.
Going forward, associations will, at a minimum, need to make the following changes to copies of recorded governing documents and deeds delivered to members: (1) update the cover page text to use the new language required by Government Code Section 12956.1(b)(1); and (2) add the new Restrictive Covenant Modification form and related procedural information. As for the Restrictive Covenant Modification form, hopefully each County will issue the appropriate form and information that associations within that County can use.
One final note, it would be prudent to use the updated disclaimer language, and add the appropriate Restrictive Covenant Modification form and procedural information, to any recorded governing document or deed the association delivers or provides to anyone. This would include PDF versions available from a website as well as copies that the manager or a Board member might attach to an e-mail.
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