Richards Layton & Finger

Unlawful Restrictive Covenants

August 27, 2018

On July 23, 2018, Delaware Governor John Carney signed into law Senate Bill No. 243 (as amended), which establishes a procedure for striking from a deed or other recorded document a provision that purports to prohibit the sale, rental, occupancy, or other use of real property because of race or other legally protected categories, subject to the exceptions permitted under the Delaware Fair Housing Act. Under this new procedure, a property owner can submit a request to strike such a provision to the recorder of deeds where the property is located. If the county attorney grants the request, the recorder will redact the document accordingly. However, it is not clear from the legislation what process will be used to strike or redact the offending provisions. The legislation was effective when signed.

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