Bill Text: NJ S564 | 2022-2023 | Regular Session | Introduced
Bill Title: Requires limited liability company to disclose ownership information when submitting deed for recording.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2022-06-02 - Reported from Senate Committee with Amendments, 2nd Reading [S564 Detail]
Download: New_Jersey-2022-S564-Introduced.html
STATE OF NEW JERSEY
220th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION
Sponsored by:
Senator SAMUEL D. THOMPSON
District 12 (Burlington, Middlesex, Monmouth and Ocean)
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
Introduced Pending Technical Review by Legislative Counsel.
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.).
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 to a limited liability company or foreign limited liability company, an affidavit identifying the registered agent of the company, as required pursuant to section 2 or section 3 of P.L. , c. (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 intended for rental purposes containing one or two dwelling units, together with the deed, the company shall submit for recording 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 intended for rental purposes containing one or two dwelling units, together with the deed, the company shall submit for recording, 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 that is the grantee of a deed for residential real property containing one to two dwelling units to disclose the registered agent of the company when it files a deed for recording. 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.
Under this circumstance, the bill requires a company to submit for recording, together with the deed, an affidavit identifying the name and business address of the registered agent for service of process of the limited liability company.
