UNIFORM LAW COMMISSION RPTE PROJECTS WINTER 2022 UPDATE (REAL ESTATE)

Benjamin Orzeske, counsel to the Uniform Law Commission, provides an update on current projects of interest to Real Estate practitioners.

The following Uniform Law Commission projects may be of interest to members of the ABA Section on Real Property, Trust and Estate Law.

Drafting Committees:

Tenancy-in-Common Ownership Default Rules. The committee will draft uniform or model state legislation to resolve problems arising under common law tenancy-in-common ownership rules. The committee will attempt to develop default management rules for common real-estate interests (and the proceeds thereof) that balance the protection of individual property rights with the need to make management decisions efficiently. The law may permit less-than-unanimous decisions on at least some issues while also preserving the cotenants’ right to contract around those rules.

Mortgage Modifications. A new drafting committee on mortgage modifications will draft a uniform or model act to standardize state laws with respect to whether modifying the terms of a mortgage require recording an instrument to document changes to the pre-recorded mortgage. The act will also clarify when a modified mortgage retains its priority over subsequent creditors to secure repayment of the debt.

Restrictive Covenants in Deeds. A drafting committee on restrictive covenants will draft a new uniform law governing the removal of discriminatory restrictive covenants from recorded property records. Many older deeds contain restrictions based on race or religion. Though these discriminatory restrictions are unenforceable, some property owners want the offensive provisions expunged entirely. States have begun to accommodate those requests, but without a consistent process. The American Land Title Association proposed this project to draft a uniform state law providing a standard process for removal of discriminatory restrictions without affecting the integrity of a property’s chain of title.

Study Committees:

Redaction of Personal Information from Public Records. Last year, a New Jersey federal judge’s husband and son were shot at their front door by a disgruntled former litigant who targeted the judge’s family by getting her home address from public records. In the wake of this horrific act of violence, states are beginning to pass legislation allowing the redaction of personal information of judges and other public officials from public records. However, there is no consistent approach. A new study committee on redaction of personal information from public records will determine whether a uniform or model act on the subject is feasible, and the scope of any potential drafting project.

Use of Tenant Information in Rental Decisions. This committee will study the need for and feasibility of a uniform or model law addressing landlords’ use of tenant screening reports in rental decisions. Such reports may give landlords outdated, inaccurate, or incomplete information about prospective tenants’ involvement in prior litigation (e.g., if the report states that the tenant was a party to litigation with a previous landlord but does not disclose that the tenant was the prevailing party). In particular, the committee will focus on identifying how widespread any problems may be and whether any act should be directed primarily at commercial providers of screening reports.

The RPTE Section appoints at least one Advisor to each uniform law commission project involving the law of real property, trusts and estates. All uniform law drafting committees are open to any interested observer and members of the RPTE Section are encouraged to join and contribute their relevant expertise. Visit www.uniformlaws.org to find more information on these committees and on other ULC projects.

WINTER 2022 - eReport

FREE MONTHLY GROUP AND COMMITTEE CONFERENCE CALLS

Group and Committee conference calls are a complimentary benefit of Section membership and normally are limited to Section members. However, prospective members are welcome to join a call without charge to learn more about the Section of Real Property, Trust and Estate Law (RPTE) Groups and Committees, and how to become involved upon joining the Section.

https://www.americanbar.org/groups/ real_property_trust_estate/committees/committee-calls/

LAND USE ENVIRONMENTAL GROUP - Thursday, March 10, 2pm CT

BUSINESS PLANNING GROUP - Wednesday, March 16, 12pm CT

EMPLOYEE PLANS AND EXECUTIVE COMPENSATION GROUP - Friday, March 18, 12pm CT

LEASING GROUP-NUTS AND BOLTS - Wednesday, March 23, 12pm CT