Bill Text: NJ A1240 | 2024-2025 | Regular Session | Introduced
Bill Title: Requires limited liability company disclose certain information when recording deed concerning residential rental property.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Housing Committee [A1240 Detail]
Download: New_Jersey-2024-A1240-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Requires limited liability company disclose certain information when recording deed concerning residential rental property.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act enhancing transparency of certain real estate transfers involving rental properties; amending P.L.1968, c.49 and supplementing P.L.2012, c.50 (C.42:2C-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.1968, c.49 (C.46:15-6) is amended to read as follows:
2. In addition to other prerequisites for recording, no deed evidencing transfer of title to real property shall be recorded in the office of any county recording officer unless it satisfies the following requirements:
a. If the transfer is subject to any fee established under section 3 of P.L.1968, c.49 (C.46:15-7) or section 2 of P.L.2003, c.113 (C.46:15-7.1), a statement of the true consideration for the transfer shall be contained in the deed, the acknowledgment, the proof of the execution, or an appended affidavit by one of the parties to the deed or that party's legal representative.
b. If the transfer is exempt from any fee established under section 3 of P.L.1968, c.49 (C.46:15-7) or section 2 of P.L.2003, c.113 (C.46:15-7.1), an affidavit stating the basis for the exemption shall be appended to the deed.
c. If the transfer is of real property upon which there is new construction, the words "NEW CONSTRUCTION" in upper case lettering shall be printed clearly at the top of the first page of the deed, and an affidavit by the grantor stating that the transfer is of property upon which there is new construction shall be appended to the deed.
d. If the transfer involves a limited liability company or a foreign liability company as the grantee, and the transfer is of residential real property intended for rental purposes, regardless of the number of dwelling units for rental, an affidavit identifying the registered agent of the company, as required pursuant to section 2 or section 3 of P.L. , c. (C. or C. ) (pending before the Legislature as this bill), shall be appended to the deed. If the registered agent is not a member of the company, an affidavit identifying at least one member of the company shall be appended to the deed.
(cf: P.L.2004, c.66, s.2)
2. (New section) When a limited liability company is the grantee of a deed for residential real property and such property is intended to be used for rental purposes, regardless of the number of dwelling units for rental, the company shall submit for recording, together with the deed, an affidavit disclosing the name and business address of the registered agent for service of process of the limited liability company designated pursuant to section 14 of P.L.2012, c.50 (C.42:2C-14). If the registered agent is not a member of the company, the company shall append to the deed an affidavit identifying at least one member of the company.
3. (New section) When a foreign limited liability company is the grantee of a deed for residential real property, and such property is intended for rental purposes, regardless of the number of dwelling units for rental, the company shall submit for recording, together with the deed, an affidavit disclosing the name and business address of the registered agent for service of process of the foreign limited liability company designated pursuant to section 14 of P.L.2012, c.50 (C.42:2C-14). If the registered agent is not a member of the company, the company shall append to the deed an affidavit identifying at least one member of the company.
4. This act shall take effect immediately.
STATEMENT
This bill would require a limited liability company or foreign limited liability company disclose information pertaining to the company's registered agent when that company is the grantee of a deed for residential real property and such property is intended to be used for residential rental purposes. The disclosure of this information would be made at the time when the company files the deed for recording. In addition, if the registered agent is not a member of the company, an affidavit identifying at least one member of the company shall be appended to the deed. The disclosures called for in this bill would be required regardless of the number of rental dwelling units contained on the property.
