Unlawfully restrictive covenants: grocery stores and supermarkets.

Plain English Breakdown

The official source material does not provide specific details on how county officials will check and approve documents or what exact new duties they have.

Making Old Grocery Store Sites Legal Again

AB-1857 makes void any rule in property documents that stops someone from using the land for a grocery store or supermarket if one was there before and has ceased operations, by allowing interested parties to submit special modification documents.

What This Bill Does

• Makes void any covenant, restriction, or condition contained in property documents that effectively prohibits or restricts the use of real estate as a grocery store or supermarket if such stores previously operated on the land and have since closed.
• Entitles an interested party to establish that existing restrictive covenants are unenforceable by submitting a restrictive covenant modification document to county officials, allowing for the development of new grocery stores or supermarkets.

Who It Names or Affects

• People who want to open grocery stores or supermarkets on land where they used to be and have since ceased operations.
• Local government officials responsible for reviewing and approving restrictive covenant modification documents.

Terms To Know

Restrictive covenant

A rule in a property document that limits what can be done with the land, like building certain types of stores.

Interested party

Someone who wants to use their property for a grocery store or supermarket and has recorded an approved restrictive covenant modification document.

Limits and Unknowns

• The bill does not specify the costs local governments will incur in reviewing these documents.
• It is unclear how quickly new grocery stores can open on old sites as a result of this law.

Official Summary Text

AB 1857, as amended, Aguiar-Curry.
Unlawfully restrictive covenants: grocery stores and supermarkets.
Existing law makes void and unenforceable any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in real property that effectively prohibits or restricts certain land uses, including the installation or use of a solar energy system or construction or use of an accessory dwelling unit or junior accessory dwelling unit on certain lots. Existing law authorizes a person who holds or is acquiring an ownership interest of record in property that the person believes is the subject of an unlawfully restrictive covenant, as specified, to record a restrictive covenant modification document. Before recording the document, existing law requires the county recorder to submit the modification document and the original document to the county counsel, who is required to determine whether the
original document contains an unlawful restriction.
This bill would make void and unenforceable against an interested party any covenant, restriction, or condition contained in any deed, contract, security instrument, lease, or other recorded or unrecorded instrument affecting the transfer or sale of any interest in real property that effectively prohibits or restricts the use of that property as a grocery store or supermarket, as defined, if a grocery store or supermarket previously operated on the property and has ceased operations and an approved restrictive covenant modification document has been recorded in the public record. The bill would entitle an interested party, as defined, to establish that an existing restrictive covenant is unenforceable by submitting a restrictive covenant modification document to the county recorder, in accordance with certain procedures, to allow the grocery store or supermarket development to proceed. By imposing additional duties
on county officials, this bill would impose a state-mandated local program. The bill would include findings and declarations relating to these provisions.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Download Bill PDF