BILL NUMBER: S2300
SPONSOR: MAYER
 
TITLE OF BILL:
An act to amend the real property law and the administrative code of the
city of New York, in relation to conveyances of certain real property
involving limited liability companies
 
PURPOSE:
To require disclosure on the deed of the identities of all natural
persons who are the ultimate beneficial owners of any LLC which acquires
real property containing one- to four-family dwelling units.
 
SUMMARY OF PROVISIONS:
Section 1 amends the real property law to prohibit recording of a
conveyance of real property containing one- to four-family dwelling
units when the grantor or grantee is a limited liability company unless
the name and address is provided for each beneficial owner, manager,
director, partner, and any other authorized person of such LLC. If any
such person is a business entity, the same identification requirements
apply until there is full disclosure of the identity of all natural
persons who are beneficial owners of the LLC.
Section 2 applies the provisions of section 1 to the administrative code
of the City of New York.
Section 3 sets the effective date.
 
JUSTIFICATION:
To address issues arising out of anonymity when a real property convey-
ance involves an LLC, previous legislation (Chapter 297 of the laws of
2019) required disclosure of the ultimate beneficial ownership of LLCs
on real property transfer tax returns for conveyances of real property
containing one-to four- family dwelling units. However, such law does
not extend to the deed for the property, which is a more readily acces-
sible document.
In furtherance of additional transparency, this bill extends such
disclosure requirements to the deed so that the identity of the natural
persons involved in the transfer of such real property cannot be shield-
ed by a business entity.
 
LEGISLATIVE HISTORY:
2021-2022: S4592, referred to Judiciary
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S2300: 333 real property law