NY State Senate Bill 2021-S4592

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to judiciary
Feb 05, 2021	referred to judiciary

2021-S4592 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Amd §333, RP L; add §7-609, NYC Ad Cd
Versions Introduced in 2023-2024 Legislative Session:: S2300

2021-S4592 (ACTIVE) - Summary

Requires that any limited liability company who is the grantor or grantee in the conveyance of real property provide a document to be accompanied with the filing of a deed which identifies the names and business addresses of all members, managers, and any other authorized persons of such limited liability company.

2021-S4592 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4592

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 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 owners, 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 identify all natural persons
who are beneficial owners of the LLC.

Section 2 applies the provisions of section 1 to the administrative code
of New York City.

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:

New bill

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S4592 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4592
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 5, 2021
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 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

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 333 of the real property law is amended by adding a
 new subdivision 1-g to read as follows:
   1-G. A RECORDING OFFICER SHALL NOT RECORD OR ACCEPT FOR RECORDING  ANY
 CONVEYANCE  OF  REAL  PROPERTY  CONTAINING  ONE- TO FOUR-FAMILY DWELLING
 UNITS WHEN THE GRANTOR OR GRANTEE OF THE DEED  IS  A  LIMITED  LIABILITY
 COMPANY,  UNLESS  IT  IS  ACCOMPANIED BY A DOCUMENT WHICH IDENTIFIES THE
 NAMES AND BUSINESS ADDRESSES OF ALL MEMBERS,  MANAGERS,  AND  ANY  OTHER
 AUTHORIZED  PERSONS,  IF  ANY, OF SUCH LIMITED LIABILITY COMPANY AND THE
 NAMES AND BUSINESS ADDRESSES OR, IF NONE, THE BUSINESS ADDRESSES OF  ALL
 SHAREHOLDERS, DIRECTORS, OFFICERS, MEMBERS, MANAGERS AND PARTNERS OF ANY
 LIMITED  LIABILITY  COMPANY  OR OTHER BUSINESS ENTITY THAT ARE TO BE THE
 MEMBERS, MANAGERS OR AUTHORIZED PERSONS, IF ANY, OF SUCH LIMITED LIABIL-
 ITY COMPANY. THE IDENTIFICATION OF SUCH NAMES AND ADDRESSES SHALL NOT BE
 DEEMED AN UNWARRANTED INVASION OF PERSONAL PRIVACY PURSUANT  TO  ARTICLE
 SIX  OF  THE PUBLIC OFFICERS LAW. IF ANY SUCH MEMBER, MANAGER OR AUTHOR-
 IZED PERSON OF THE LIMITED LIABILITY COMPANY IS ITSELF A LIMITED LIABIL-
 ITY COMPANY OR OTHER BUSINESS ENTITY, THE NAMES  AND  ADDRESSES  OF  THE
 SHAREHOLDERS, DIRECTORS, OFFICERS, MEMBERS, MANAGERS AND PARTNERS OF THE
 LIMITED  LIABILITY  COMPANY  OR  OTHER  BUSINESS  ENTITY  SHALL  ALSO BE
 DISCLOSED UNTIL FULL DISCLOSURE OF ULTIMATE OWNERSHIP BY NATURAL PERSONS
 IS ACHIEVED. FOR PURPOSES OF  THIS  SUBDIVISION,  THE  TERMS  "MEMBERS",
 "MANAGERS",  "AUTHORIZED PERSON", "LIMITED LIABILITY COMPANY" AND "OTHER
 BUSINESS ENTITY" SHALL HAVE THE SAME MEANING AS THOSE TERMS ARE  DEFINED
 IN SECTION ONE HUNDRED TWO OF THE LIMITED LIABILITY COMPANY LAW.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08706-01-1

 S. 4592                             2
 
   §  2.  The  administrative  code of the city of New York is amended by
 adding a new section 7-609 to read as follows:
   § 7-609 REAL PROPERTY DEED TRANSFER INVOLVING LIMITED LIABILITY COMPA-
 NIES. THE OFFICE OF THE REGISTER OF THE CITY OF NEW YORK OR COUNTY CLERK
 SHALL NOT RECORD OR ACCEPT FOR RECORDING ANY CONVEYANCE OF REAL PROPERTY
 CONTAINING  ONE- TO FOUR-FAMILY DWELLING UNITS WHEN THE GRANTOR OR GRAN-
 TEE OF THE DEED IS A LIMITED LIABILITY COMPANY, UNLESS IT IS ACCOMPANIED
 BY A DOCUMENT WHICH IDENTIFIES THE NAMES AND BUSINESS ADDRESSES  OF  ALL
 MEMBERS,  MANAGERS,  AND  ANY  OTHER AUTHORIZED PERSONS, IF ANY, OF SUCH
 LIMITED LIABILITY COMPANY AND THE NAMES AND BUSINESS  ADDRESSES  OR,  IF
 NONE,  THE  BUSINESS ADDRESSES OF ALL SHAREHOLDERS, DIRECTORS, OFFICERS,
 MEMBERS, MANAGERS AND PARTNERS OF ANY LIMITED LIABILITY COMPANY OR OTHER
 BUSINESS ENTITY THAT ARE TO  BE  THE  MEMBERS,  MANAGERS  OR  AUTHORIZED
 PERSONS,  IF  ANY, OF SUCH LIMITED LIABILITY COMPANY. THE IDENTIFICATION
 OF SUCH NAMES AND ADDRESSES SHALL NOT BE DEEMED AN UNWARRANTED  INVASION
 OF  PERSONAL PRIVACY PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
 IF ANY SUCH MEMBER, MANAGER OR AUTHORIZED PERSON OF THE LIMITED  LIABIL-
 ITY  COMPANY  IS  ITSELF  A  LIMITED LIABILITY COMPANY OR OTHER BUSINESS
 ENTITY, THE NAMES AND ADDRESSES OF THE  SHAREHOLDERS,  DIRECTORS,  OFFI-
 CERS, MEMBERS, MANAGERS AND PARTNERS OF THE LIMITED LIABILITY COMPANY OR
 OTHER  BUSINESS  ENTITY SHALL ALSO BE DISCLOSED UNTIL FULL DISCLOSURE OF
 ULTIMATE OWNERSHIP BY NATURAL PERSONS IS ACHIEVED. FOR PURPOSES OF  THIS
 SECTION,  THE TERMS "MEMBERS", "MANAGERS", "AUTHORIZED PERSON", "LIMITED
 LIABILITY COMPANY" AND "OTHER BUSINESS ENTITY" SHALL HAVE THE SAME MEAN-
 ING AS THOSE TERMS ARE DEFINED IN SECTION ONE HUNDRED TWO OF THE LIMITED
 LIABILITY COMPANY LAW.
   § 3. This act shall take effect immediately.

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Senate Bill S4592

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Archive: Last Bill Status - In Senate Committee Judiciary Committee

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2021-S4592 (ACTIVE) - Details

2021-S4592 (ACTIVE) - Summary

2021-S4592 (ACTIVE) - Sponsor Memo

2021-S4592 (ACTIVE) - Bill Text download pdf

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Sponsored By

Shelley B. Mayer

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Actions

2021-S4592 (ACTIVE) - Details

2021-S4592 (ACTIVE) - Summary

2021-S4592 (ACTIVE) - Sponsor Memo

2021-S4592 (ACTIVE) - Bill Text download pdf

Comments