Bill Text: NJ S276 | 2024-2025 | Regular Session | Amended
Bill Title: Requires limited liability company to disclose ownership information when submitting deed for recording.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced) 2024-02-15 - Reported from Senate Committee with Amendments, 2nd Reading [S276 Detail]
Download: New_Jersey-2024-S276-Amended.html
SENATE, No. 276
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator BRIAN P. STACK
District 33 (Hudson)
Co-Sponsored by:
Senators Cruz-Perez and O'Scanlon
SYNOPSIS
Requires limited liability company to disclose ownership information when submitting deed for recording.
CURRENT VERSION OF TEXT
As reported by the Senate Community and Urban Affairs Committee on February 15, 2024, with amendments.
An Act enhancing transparency of certain real estate transfers, amending P.L.1968, c.49, and supplementing P.L.2012, c.50 (C.42:2C-1 et seq.) 1and chapter 48 of Title 40 of the Revised Statutes1.
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 is of residential real property intended for rental purposes containing one or two dwelling units or a multiple dwelling to a limited liability company or foreign limited liability company, an affidavit identifying 1[the registered agent] each beneficial owner1 of the company, as required pursuant to section 2 or section 3 of P.L. , c. (C. 1or C. 1) (pending before the Legislature as this bill), shall be appended to the deed. 1[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]
e. For the purposes of this section, "beneficial owner" shall mean the same as the term is defined in 31 U.S.C. s.5336(a)(3)1.
(cf: P.L.2004, c.66, s.2)
2. (New section) 1a.1 When a limited liability company is the grantee of a deed for residential real property intended for rental purposes containing one or two dwelling units or a multiple dwelling, together with the deed, the company shall submit for recording an affidavit disclosing the 1[name and business address of the registered agent] the following information for each beneficial owner of the company1 for service of process of the limited liability company designated pursuant to section 14 of P.L.2012, c.50 (C.42:2C-14) 1[. 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] : (1) full legal name; (2) date of birth; (3) current business street address; and (4) a unique identifying number from an acceptable identification document defined in 31 U.S.C. s.5336(a)(1).
b. For the purposes of this section, "beneficial owner" shall mean the same as the term is defined in 31 U.S.C. s.5336(a)(3)1.
3. (New section) 1a.1 When a foreign limited liability company is the grantee of a deed for residential real property intended for rental purposes containing one or two dwelling units or a multiple dwelling, together with the deed, the company shall submit for recording, an affidavit disclosing 1[name and business address of the registered agent] the following information for each beneficial owner of the company1 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) 1[. 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] : (1) full legal name; (2) date of birth; (3) current business street address; and (4) a unique identifying number from an acceptable identification document defined in 31 U.S.C. s.5336(a)(1).
b. For the purposes of this section, "beneficial owner" shall mean the same as the term is defined in 31 U.S.C. s.5336(a)(3)1 .
4. (New section) 1a.1 A municipality may direct by ordinance of the governing body that any charge issued to a limited liability company or foreign limited liability company that is a grantee of a deed for residential real property intended for rental purposes containing one or two dwelling units or a multiple dwelling pursuant to a housing code, building code, or health code, concerning residential property leased by the limited liability company or foreign limited liability company, shall become a lien on the property, enforceable in the manner provided for real property tax liens in chapter 5 of Title 54 of the Revised Statutes, if the charge remains unpaid on the first day of the thirteenth month next following the date when the charge becomes due and owing. At least 90 days prior to filing an unpaid charge as a municipal lien against the property pursuant to this section, the municipality shall serve written notice to the property owner, and the other parties in interest, indicating that if the charge remains unpaid it shall be converted into a municipal lien, and shall provide the owner the opportunity to pay the fine or request a hearing before a court of competent jurisdiction. If the limited liability company or foreign limited liability company is not registered, in violation of section 2 of P.L.1974, c.50 (C.46:8-28) 1or section 12 of P.L.1967, c.76 (C.55:13A-12)1 , then this additional notice requirement concerning the landlord shall not apply prior to conversion into a municipal lien. In a municipality that has adopted an ordinance pursuant to this subsection, at the time when the charge becomes a lien, the municipal officer responsible for housing code enforcement shall file a copy of the lien and certification with the municipal tax collector. This lien shall be added to and become and form part of the taxes next to be assessed and levied upon such dwelling or lands, the same to bear interest at the same rate as taxes, and shall be collected and enforced by the same officers and in the same manner as taxes.
b. As used in this section, "charge" means any fee, fine, penalty, or other charge issued to a landlord, concerning residential property leased by the landlord, pursuant to a housing, building, or health code.
5. This act shall take effect immediately.
