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

A4017

ASSEMBLY, No. 4017

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 12, 2026

Sponsored by:

Assemblyman� ALEX SAUICKIE

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.)
and chapter 48 of
Title 40 of the Revised Statutes
.

����
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 the registered agent and
the beneficial owner 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,
the affidavit required pursuant to this subsection shall identify, in addition
to the beneficial owner, at least one member of the company.�

����
e.� For the purposes of
this section:

����
�Beneficial owner� means,
with respect to an entity:

����
(1)� an individual: who,
directly or indirectly, owns not less than 25 percent of the ownership
interests of the entity; and who holds the greatest ownership interest in the
entity; or

����
(2)� for an entity in which
no individual owns greater than 25 percent of the ownership interests of the
entity, an individual who, directly or indirectly, holds the greatest ownership
interest in the entity.

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

���� 2.��� (New section)� a.� 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 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 affidavit pursuant to this
subsection shall identify the name and address of at least one member of the
company; and

���� (2)� the following information
for the beneficial owner of the company for service of process of the limited
liability company designated pursuant to section 14 of P.L.2012, c.50
(C.42:2C-14):

���� (a)� full legal name;

���� (b)� date of birth;

���� (c)� current business street
address; and

���� (d)� 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� means, with
respect to an entity:

���� (1)� an individual: who,
directly or indirectly, owns not less than 25 percent of the ownership
interests of the entity; and who holds the greatest ownership interest in the
entity; or

���� (2)� for an entity in which no
individual owns greater than 25 percent of the ownership interests of the
entity, an individual who, directly or indirectly, holds the greatest ownership
interest in the entity.

���� 3.��� (New section)� a.� 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 the:

���� (1)� 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 affidavit pursuant to this
subsection shall identify the name and address of at least one member of the
company; and

���� (2)� the following information
for the beneficial owner of the company 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):

���� (a)� full legal name;

���� (b)� date of birth;

���� (c)� current business street
address; and

���� (d)� 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� means, with
respect to an entity:

���� (1)� an individual: who,
directly or indirectly, owns not less than 25 percent of the ownership
interests of the entity; and who holds the greatest ownership interest in the
entity; or

���� (2)� for an entity in which no
individual owns greater than 25 percent of the ownership interests of the
entity, an individual who, directly or indirectly, holds the greatest ownership
interest in the entity.

���� 4.� (New section)� a.� 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) or section 12 of P.L.1967, c.76 (C.55:13A-12),
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.

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, or that is a multiple dwelling, to disclose each beneficial owner of the
company when it files a deed for recording.� The bill defines "beneficial
owner."

���� The bill requires the company
to submit for recording, together with the deed, an affidavit containing the
name and business address of the registered agent for service of process, along
with the following information of each beneficial owner for service of process
of the limited liability 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.

���� The bill would also permit a
municipality to direct, by ordinance, that charges issued to certain limited
liability companies or foreign limited liability companies pursuant to a
housing code, building code, or health code will become a lien on the property
if the charge remains unpaid on the first day of the 13th month next following
the date when the charge becomes due and owing.