On September 13, 2019 the Governor signed into law a bill that requires all limited liability companies to disclose its members, managers and any other authorized persons of every limited liability company who buys or sells residential real property in the state of New York.
A copy of the bill can be accessed at this link. https://legislation.nysenate.gov/pdf/bills/2019/S1730
Guidance from the New York State Depatment of Taxation and Finance can be found here:
https://www.tax.ny.gov/bus/transfer/rptidx.htm#conveyances
Below are a few FAQ and answers that you and your clients might find helpful:
What disclosure is required?
All LLCs are required to disclose the names, business addresses, and tax identification number of all members, managers and any authorized persons.
When is the disclosure made?
The disclosure will be made at the time the deed is recorded. No deed to transfer 1-4 family residential real property will be accepted for recording without this information.
Does this affect all types of property?
No. The new law only requires disclosure for transfers of 1-4 residential real property.
When does this law take effect?
Immediately.
How is the information disclosed?
It is anticipated that the TP-584 transfer tax forms will be updated to include a section for the name and business address of all members, managers and authorized persons of the LLC. However, since those forms are not yet updated and the law is effective now, some counties have indicated that they will require a list of the names and addresses of all members, managers and authorized persons of the LLC to be listed on a sheet to accompany the TP-584. A sample form is on the forms section of our website.
Do both buyers and Sellers need to provide this information?
Yes.
Will title companies require this information prior to closing or insuring a transaction?
Yes. Since no deed can be recorded without this information, Thoroughbred Title will not be able to insure any transaction where this information hasn’t been provided to the us, at or prior to closing.
What will be done with this information?
The statute is not clear – it appears it will be retained by the County Clerk’s office and/or the New York State Department of Finance. We will keep you apprised of further developments or clarifications.
If you have any additional questions please feel free to reach out to our office.
Updated 9/30/19 to include Department of Taxation and Finance Link and information on tax identification number.
