New Jersey Assembly Bill A1240

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

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

Impact

The passage of A1240 would amend existing New Jersey state laws related to the recording of real property deeds. It would require that any deed transferring ownership of residential rental property not only includes standard requirements but also an affidavit identifying the registered agent of the LLC or foreign LLC. This change is designed to ensure that all stakeholders, including tenants and local authorities, have access to critical information regarding the ownership and management of rental properties, thereby enhancing regulatory oversight.

Summary

Assembly Bill A1240 aims to increase transparency in real estate transactions, specifically those involving residential rental properties owned by limited liability companies (LLCs) and foreign limited liability companies. The bill mandates that these entities disclose certain information regarding their registered agents at the time of recording a deed for residential real property intended for rental purposes. This transparency measure is believed to facilitate better accountability and communication in real estate dealings involving rental properties.

Contention

Notably, some concerns may arise regarding the additional administrative burden this bill places on LLCs and foreign LLCs involved in the real estate sector. Critics might argue that this requirement could complicate the deed recording process, potentially leading to delays and difficulties for property owners seeking to conduct transactions smoothly. Furthermore, there may be discussions around privacy implications and the potential reluctance of some companies to disclose certain internal details publicly.