SENATE, No. 399
STATE OF NEW JERSEY
222nd LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Senator BRIAN P. STACK
District 33 (Hudson)
Senator RAJ MUKHERJI
District 32 (Hudson)
Co-Sponsored by:
Senators Cruz-Perez, O'Scanlon, Cryan, Greenstein and Scutari
SYNOPSIS
Requires limited liability company to disclose ownership information when submitting deed for recording and establishes penalty.
CURRENT VERSION OF TEXT
As reported by the Senate Community and Urban Affairs Committee on February 5, 2026, 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.) 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.
1c. A limited liability company in violation of this section shall be subject to a penalty pursuant to subsection c. of section 4 of P.L. c. (C. ) (pending before the Legislature as this bill).1
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.
1c. A limited liability company in violation of this section shall be subject to a penalty pursuant to subsection c. of section 4 of P.L. c. (C. ) (pending before the Legislature as this bill).1
4. (New section) a. 1 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. “Charge” shall also include a penalty incurred pursuant to subsection c. of this section.
b.1 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.
1[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.]
c. A limited liability company that is the grantee of a deed for residential real property intended for rental purposes containing one or two dwelling units or a multiple dwelling that violates the provisions of section 2 or 3 of P.L. , c. (C. or C. ) (pending before the Legislature as this bill) shall be subject to a fine of $5,000 per violation assessed and to be collected by the municipality in which the property is located. Each month that the violation persists shall constitute a separate violation.1
5. This act shall take effect immediately.