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Bill

S 399

Requires limited liability company to disclose ownership information when submitting deed for recording and establishes penalty.*

2026-2027 Regular Session Introduced by Nilsa Cruz-Perez and 5 co-sponsors

New Jersey bill requires LLCs to disclose ownership details when recording property deeds, with penalties for non-compliance, aimed at reducing anonymous real estate ownership.

Referred to Senate Budget and Appropriations Committee
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Bill Summary · S 399

Legislative bill overview

S 399 requires limited liability companies (LLCs) to disclose their ownership information when recording deeds in New Jersey. The bill establishes penalties for non-compliance, creating a legal obligation to reveal the identities of LLC members or managers during property transactions.

Why is this important

Property ownership opacity through anonymous LLCs has enabled money laundering, tax evasion, and shell company schemes while complicating municipal tax assessment and law enforcement investigations. This bill addresses a genuine transparency gap that affects government revenue collection and crime prevention at the state and local level.

Potential points of contention

  • Business privacy concerns: Real estate investors and business owners may argue the disclosure requirement exposes legitimate privacy interests and competitive advantages, distinguishing between beneficial transparency and overreach.
  • Implementation complexity: Recording offices would need new systems to collect, store, and verify ownership data; costs and training requirements could burden county governments.
  • Scope ambiguity: The bill's language regarding which entities qualify as "LLCs" and what constitutes sufficient "ownership information" may create inconsistent enforcement or unintended loopholes.

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

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