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Bill

S 401

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

2026-2027 Regular Session Introduced by Teresa Ruiz and 1 co-sponsor

New Jersey bill requires LLCs recording residential rental property deeds to publicly disclose beneficial ownership information to increase landlord accountability and transparency.

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee
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Bill Summary · S 401

Legislative bill overview

S 401 requires limited liability companies (LLCs) that own residential rental properties to disclose certain information when recording property deeds. The bill aims to increase transparency about who actually owns rental properties by mandating LLCs to reveal beneficial ownership details in public property records.

Why is this important

Opaque property ownership through LLCs can obscure landlord accountability, complicate tenant protections, and reduce government's ability to track property violations or enforce housing regulations. The bill addresses a growing concern about anonymous investment in residential rental markets and may help tenants and municipalities identify responsible parties for maintenance and code violations.

Potential points of contention

  • Business privacy vs. transparency trade-off: LLC owners may argue the disclosure requirement undermines the liability protection and privacy benefits that entity formation provides
  • Compliance burden and costs: Property owners and title companies could face administrative expenses and complexity in implementing new disclosure requirements
  • Scope uncertainty: The bill's language doesn't specify what "certain information" must be disclosed, raising questions about how much detail is required and whether partial ownership disclosure is sufficient
  • Market competitiveness concerns: Real estate investors may claim mandatory disclosure disadvantages New Jersey properties compared to neighboring states with fewer requirements

Compiled from official sources — confirm details with the bill’s official record.

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