Bill Text: NJ S672 | 2020-2021 | Regular Session | Amended

New Jersey Senate Bill 672 (Prior Session Legislation)

Bill Title: Requires limited liability company to disclose ownership information when submitting deed for recording.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2021-12-06 - Reported from Senate Committee with Amendments, 2nd Reading [S672 Detail]

Download: New_Jersey-2020-S672-Amended.html

[First Reprint]

SENATE, No. 672

STATE OF NEW JERSEY

219th LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2020 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

As reported by the Senate Community and Urban Affairs Committee on December 6, 2021, 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.).

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 ¹intended for rental purposes¹ containing one ¹[to four] or two¹ dwelling units to ¹[or from]¹ a limited liability company or foreign limited liability company, an affidavit identifying ¹[the members, managers, and other authorized persons] the registered agent¹ 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. ¹If 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.¹

(cf: P.L.2004, c.66, s.2)

2. (New section) When a limited liability company is the ¹[grantor or]¹ grantee of a deed for residential real property ¹intended for rental purposes¹ containing one ¹[to four] or two¹ dwelling units, together with the deed, the company shall submit for
recording an affidavit disclosing the ¹[names] name¹ and business ¹[addresses] address¹ of ¹[all members, managers, and any other authorized persons, if any,] the registered agent for service of process¹of the limited liability company ¹[or, if none, the names and business addresses of all shareholders, directors, officers, members, managers, and partners of any limited liability company or other business entity that are to be the members, managers, or authorized persons, if any, of such limited liability company] designated pursuant to section 14 of P.L.2012, c.50 (C.42:2C-14)¹. If ¹[any member, manager, or authorized person of the limited liability company is itself a limited liability company or other business entity, the affidavit shall disclose the names and addresses of the shareholders, directors, officers, members, managers, and partners of the limited liability company or other business entity until full disclosure of ultimate ownership by natural persons is achieved] 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 company¹.

3. (New section) When a foreign limited liability company is the ¹[grantor or]¹ grantee of a deed for residential real property ¹intended for rental purposes¹ containing one ¹[to four] or two¹ dwelling units, together with the deed, the company shall submit for recording, an affidavit disclosing the ¹[names] name¹ and business ¹[addresses] address¹ of ¹[all members, managers, and any other authorized persons, if any,] the registered agent for service of process¹of the foreign limited liability company ¹[or, if none, the names and business addresses of all shareholders, directors, officers, members, managers, and partners of any foreign limited liability company or other business entity that are to be the members, managers, or authorized persons, if any, of that foreign limited liability company] designated pursuant to section 14 of P.L.2012, c.50 (C.42:2C-14)¹. If ¹[any member, manager, or authorized person of the foreign limited liability company is itself a foreign limited liability company or other business entity, the affidavit shall disclose the names and addresses of the shareholders, directors, officers, members, managers, and partners of the foreign limited liability company or other business entity until full disclosure of ultimate ownership by natural persons is achieved] 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 company¹.