AN ACT TO AMEND TITLE 9 OF THE DELAWARE CODE RELATING TO UNLAWFUL RESTRICTIVE COVENANTS.

Since 1973, § 9605(b) of Title 9 of the Delaware Code (“§ 9605”) has prohibited the recordation of instruments that restrict the sale, gift, transfer, assignment, conveyance, ownership, lease, rental, use, or occupancy of real property to or by any person because of the person’s race, color, creed, sex, national origin, or ancestry. This Act provides a mechanism for owners of real property subject to an instrument that contains a provision that restricts property rights based on the list of characteristics included in § 9605, including the governing documents of a common interest community, to redact and strike the unlawful restrictive covenant language from instruments recorded with a county recorder of deeds before the original enactment of § 9605 or in violation of § 9605. This Act also amends the list of characteristics included in § 9605 that may not be used to discriminate in the sale, gift, transfer, assignment, conveyance, ownership, lease, rental, use, or occupancy of real property to make it consistent with Delaware’s fair housing laws. However, this Act makes clear that provisions that are permitted by the exceptions to the Delaware Fair Housing Act are not prohibited from being recorded by a recorder of deeds. Finally, this Act makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.