Bill Text: NJ A4100 | 2016-2017 | Regular Session | Introduced
Bill Title: Requires limited liability company to disclose ownership information when submitting deed for recording.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-09-15 - Introduced, Referred to Assembly Housing and Community Development Committee [A4100 Detail]
Download: New_Jersey-2016-A4100-Introduced.html
Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Requires limited liability company to disclose ownership information when submitting deed for recording.
CURRENT VERSION OF TEXT
As introduced.
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 containing one to four dwelling units to or from a limited liability company or foreign limited liability company, an affidavit identifying the members, managers, and other authorized persons 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.
(cf: P.L.2004, c.66, s.2)
2. (New section) When a limited liability company is the grantor or grantee of a deed for residential real property containing one to four dwelling units, together with the deed, the company shall submit for recording an affidavit disclosing the names and business addresses of all members, managers, and any other authorized persons, if any, of the limited liability company and the names and business addresses or, if none, the 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. If 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.
3. (New section) When a foreign limited liability company is the grantor or grantee of a deed for residential real property containing one to four dwelling units, together with the deed, the company shall submit for recording, an affidavit disclosing the names and business addresses of all members, managers, and any other authorized persons, if any, of the foreign limited liability company and the names and business addresses or, if none, the 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. If 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.
4. This act shall take effect immediately.
STATEMENT
This bill would require a limited liability company or foreign limited liability company that is the grantor or grantee of a deed for residential real property containing one to four dwelling units to disclose the individual members of the company when it files a deed for recording.
Under this circumstance, the bill requires a company to submit for recording, together with the deed, an affidavit identifying the names and business addresses of all members, managers, and authorized persons of the company, and the names and business addresses of all shareholders, directors, officers, members, managers, and partners of any business entity that is to be a member, manager, or authorized person of the company. If any member, manager, or authorized person of the company is a business entity, the bill requires disclosure of all shareholders, directors, officers, members, managers, and partners of the business entity until full disclosure of ultimate ownership by natural persons is achieved.
At times, parties involved in real estate transfers conceal their identities by acting through limited liability companies. This bill enables the public to know the names of individuals involved in purchasing property in residential neighborhoods, although the individuals have acted through shell limited liability companies.
