HB0091 • 2021

Removal of unenforceable property covenants.

AN ACT relating to real property and conveyances; establishing procedures for removing unenforceable restrictive covenants for real property; specifying what restrictive covenants are unenforceable; providing immunity from civil liability as specified; authorizing a civil action for new instruments recorded to remove an enforceable restrictive covenant; and providing for an effective date.

Housing

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Representative Duncan
Last action: 2021-04-02
Official status: enrolled
Effective date: 7/1/2021

Plain English Breakdown

The summary does not provide detailed information on all aspects of the bill, such as exact filing fees or court procedures for disputes. These details are available in the full text but not explicitly stated in the provided summaries.

Removal of Unenforceable Property Covenants

This law allows property owners to remove certain unenforceable restrictions on their land and provides protections for those who do so.

What This Bill Does

Allows people with ownership interests in real property or authorized agents to record a new document that removes restrictive covenants declared void by courts or violating specific fair housing laws.
Specifies the process for recording these documents, including requirements for filing and recording with county clerks.
Provides immunity from civil liability for good faith efforts to remove unenforceable covenants under certain conditions.
Allows a person who believes an enforceable covenant was improperly removed to file a lawsuit in court.

Who It Names or Affects

People who own property and want to remove unenforceable restrictions on their land.
County clerks responsible for recording these new documents.
Courts that handle disputes over the removal of restrictive covenants.

Terms To Know

Restrictive covenant: A rule in a property deed or agreement that limits how the land can be used.
Immunity from civil liability: Protection against being sued for certain actions taken under this law.

Limits and Unknowns

The law does not specify who will enforce compliance with its provisions.
It is unclear how often disputes over the removal of restrictive covenants might arise.
The effectiveness and reach of the new procedures are yet to be seen in practice.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB0091H2001

2nd reading • Representative Crago

Adopted

Plain English: The amendment adds a new section allowing people to sue if they believe a restrictive covenant that was removed is still valid, and it changes some details about how the bill's sections are numbered.

Adds a new section (34-1-156) which allows someone who believes an enforceable restrictive covenant has been wrongly removed to file a civil action in court.
Changes the wording of the bill title by adding 'authorizing a civil action for new instruments recorded to remove an enforceable restrictive covenant;'
Modifies section references from 'and 34-1-155' to 'through 34-1-156'

The amendment includes technical changes that may be hard for non-lawyers to understand fully.

HB0091HS001

Standing Committee • House Corporations, Elections & Political Subdivis

Adopted

Plain English: The amendment modifies the bill to specify that a conveyance which violates certain Wyoming statutes is subject to removal procedures for unenforceable restrictive covenants.

Adds language after 'conveyance' on page 3, line 16, specifying that it must violate W.S. 40-26-103 through 40-26-109 to be subject to removal procedures.
Changes 'If this' to 'This' on page 3, line 19.
Replaces 'any' with 'a' on page 3, line 20.

The amendment text does not provide full context for the changes made, so some details about how these edits affect the overall bill are unclear without reviewing the entire bill and understanding Wyoming statutes W.S. 40-26-103 through 40-26-109.

HB0091S2001

2nd reading • Senator Bouchard

Adopted

Plain English: The amendment removes specific lines from the bill that deal with procedures for removing unenforceable restrictive covenants on real property.

Removes certain lines from page 3 of the bill that were related to establishing procedures for removing unenforceable restrictive covenants.
Eliminates lines from page 4 of the bill that specified particular details about these removal procedures.

The exact content and significance of the deleted lines are not provided, making it unclear what specific changes this amendment makes to the original bill's intent or effect.

Bill History

2021-04-02 LSO
Assigned Chapter Number 70
2021-04-02 Governor
Governor Signed HEA No. 0032
2021-03-30 Senate
S President Signed HEA No. 0032
2021-03-30 House
H Speaker Signed HEA No. 0032
2021-03-26 LSO
Assigned Number HEA No. 0032
2021-03-26 House
H Concur:Passed 60-0-0-0-0
2021-03-25 House
H Received for Concurrence
2021-03-25 Senate
S 3rd Reading:Passed 24-6-0-0-0
2021-03-24 Senate
S 2nd Reading:Passed
2021-03-23 Senate
S COW:Passed
2021-03-18 Senate
S Placed on General File
2021-03-18 Senate
S07 - Corporations:Recommend Do Pass 5-0-0-0-0
2021-03-17 Senate
S Introduced and Referred to S07 - Corporations
2021-03-04 Senate
S Received for Introduction
2021-03-03 House
H 3rd Reading:Passed 57-2-1-0-0
2021-03-02 House
H 2nd Reading:Passed
2021-03-01 House
H COW:Passed
2021-03-01 House
H Placed on General File
2021-03-01 House
H07 - Corporations:Recommend Amend and Do Pass 9-0-0-0-0
2021-02-05 House
H Introduced and Referred to H07 - Corporations
2021-02-02 House
H Received for Introduction
2021-02-01 LSO
Bill Number Assigned

Official Summary Text

Bill Summary - 21LSO-0465
Bill No.:

HB0091

Effective:

7/1/2021 12:00:00 AM

LSO No.:

21LSO-0465

Enrolled Act No.:

HEA No. 0032

Chapter No.:

Prime Sponsor:

Duncan

Catch Title:

Removal of unenforceable property covenants.

Subject:

Provided for removal of unenforceable property covenants.

Summary/Major Elements:

Establishes applicable unenforceable property covenants including covenants deemed unenforceable by the United States or Wyoming Supreme Court or in violation of certain fair housing laws.

Provides for
a recordation procedure with the county clerk
for removal of unenforceable property covenants.

Provides immunity from civil liability for a good faith effort at removal with certain exceptions.

Provides for a civil court action to reinstate improperly removed enforceable covenants.

The civil action provisions include filing a petition with the court, a show cause hearing, and entry of an order upholding the removal of the covenant or holding the covenant as valid and enforceable.

Payment of damages may be ordered by the court if the covenant is found valid and enforceable.

Payment of attorney's fees may be ordered by the court if the covenant is found void and unenforceable.
The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

Read the full stored bill text

21LSO-0465

ORIGINAL House

ENGROSSED
Bill No
.
HB0091

ENROLLED ACT NO. 32,

HOUSE OF REPRESENTATIVES

SIXTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING
2021 General Session

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 34
‑
1
‑
154 through 34
‑
1
‑
156 are created to read:

34
‑
1
‑
154.

Removal of restrictive covenants in violation of law.

(a)

Any person who holds an ownership interest of record in real property in this state, or any attorney, title insurance company or title insurance agent authorized to do business in this state and acting on behalf of a person with an ownership interest in real property in this state, may record a new instrument to remove any restrictive covenant contained in any conveyance encumbering or otherwise affecting the transfer or sale of, or any interest in, real property that:

(i)

Is held to be void and unenforceable by a final determination of the supreme court of Wyoming or the supreme court of the United States of America; or

(ii)

Is in violation of the acts prohibited by W.S. 40
‑
26
‑
103 through 40
‑
26
‑
109.

(b)

Except as provided in W.S. 34
‑
1
‑
156, any person who, in good faith, delivers or records any instrument pursuant to subsection (a) of this section shall be immune from civil liability. The immunity provided in this subsection shall not be available to any person who:

(i)

Represents or attempts to represent that the restrictive covenants pertaining to paragraphs (a)(i) or (ii) of this section, which are void and unenforceable or prohibited by law, are valid and enforceable; or

(ii)

Honors or exercises or attempts to honor or exercise restrictive covenants pertaining to paragraphs (a)(i) or (ii) of this section, which are void and unenforceable or prohibited by law.

34
‑
1
‑
155.

Process for removing restrictive covenants in violation of law.

(a)

In accordance with W.S. 34
‑
1
‑
154, a new instrument removing a restrictive covenant that is in violation of law may be recorded by filing the new instrument with the county clerk for the county in which the real property is located.

(b)

A new instrument filed and recorded under this section shall contain all of the following:

(i)

The title of the filed and recorded prior instrument to which the new instrument pertains;

(ii)

The name and mailing address of the person filing and recording the new instrument;

(iii)

The name and mailing address of any owner of record of the real property on whose behalf the new instrument is being filed;

(iv)

The legal description of the real property subject to the provisions in violation of law as specified in W.S. 34
‑
1
‑
154(a);

(v)

A clear reference to the provisions in the prior instrument that are in violation of law as specified in W.S. 34
‑
1
‑
154(a) and have been stricken from the new instrument.

(c)

Upon receiving a new instrument that complies with the requirements of subsection (b) of this section, the county clerk for the county in which the real property is located shall file and record the new instrument.

34
‑
1
‑
156.

Civil action for removing enforceable covenants.

(a)

Any person whose real property is subject to, or is benefitted by, a restrictive covenant that was removed under W.S. 34
‑
1
‑
155 and who believes the restrictive covenant is valid, may petition the court having jurisdiction over the property. The petition shall state the grounds upon which relief is requested, and shall be supported by the affidavit of the petitioner or his attorney setting forth a concise statement of the facts upon which the petition is based. The clerk of court shall assign a case number to the petition and obtain from the petitioner a filing fee of thirty
‑
five dollars ($35.00). Upon the filing of the petition the following shall apply:

(i)

The court may enter its order, which may be granted ex parte, directing the person who filed and recorded the instrument to appear before the court at a time no earlier than six (6) nor later than fifteen (15) days following the date of service of the petition, and order the person to show cause, if any, why the relief provided in this subsection should not be granted. Service under this section shall be made in accordance with the rules of civil procedure;

(ii)

If, following a hearing on the matter the court determines that the restrictive covenant under subsection (a) of this section is valid and enforceable, the court shall issue an order so stating and awarding damages of up to one thousand dollars ($1,000.00) as determined by the court or actual damages, whichever is greater, costs and reasonable attorneys' fees to the petitioner to be paid by the person who filed and recorded the instrument;

(iii)

If the court determines that the restrictive covenant is void and unenforceable, the court shall issue an order so stating and shall award costs and reasonable attorneys' fees to the person who filed and recorded the instrument to be paid by the petitioner.

Section 2
.

This act is effective July 1, 2021
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk