New Jersey Senate Bill S889

New Jersey 2022-2023 Regular Session

• Introduced: 1/27/22
• Refer: 1/27/22
• Report Pass: 12/1/22
• Engrossed: 12/11/23
• Refer: 12/11/23

Caption

Requires limited liability company disclose certain information when recording deed concerning residential rental property.

Impact

If enacted, S889 would amend existing laws concerning the recording of deeds under New Jersey law, specifically updating the regulations laid out in P.L.1968, c.49 and P.L.2012, c.50. The bill seeks to address the rising concern over the anonymity often associated with LLCs owning rental properties, which can lead to complications in tenant protections and property management. By mandating the provision of registered agent information, the bill aims to establish clearer lines of responsibility for both property management and tenant engagement, potentially enhancing tenant protections against negligent landlord practices.

Summary

Senate Bill S889 aims to enhance the transparency of real estate transfers involving residential rental properties. It requires limited liability companies (LLCs) and foreign LLCs to disclose the name and business address of their registered agent when they are the grantee of a deed intended for rental purposes. This requirement holds regardless of the number of rental dwelling units involved. The detailed disclosure is required to be submitted at the time of deed recording to ensure accountability and clearer property ownership tracking in the rental market.

Contention

While supporters of S889 argue that the measure is a necessary step for improving transparency and accountability in real estate transactions, there are potential concerns among business owners about the administrative burden created by the additional paperwork and disclosure requirements. Opponents may also express apprehension regarding privacy issues and the impact of such transparency on the housing market dynamics. The resistance may stem from fears that increased visibility could deter investors who prefer maintaining a degree of anonymity when managing rental properties.