S399

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;

(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

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:

(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;

(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

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 the registered agent and the beneficial owner of the company when it files a deed for recording.

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 and 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.