TRENTON, N.J. – A New Jersey Senate committee has advanced legislation that would force limited liability companies (LLCs) purchasing residential properties to publicly disclose their true owners, a move aimed at increasing transparency in the state’s real estate market and curbing anonymous property ownership.
The Senate Community and Urban Affairs Committee voted February 5 to approve Senate Bill 399, sponsored with committee amendments, which would require both domestic and foreign LLCs to identify their beneficial owners and registered agents when recording deeds for residential properties. The requirement applies to any property containing one to two dwelling units or multiple dwellings such as apartment buildings.
Under the amended bill, LLCs would be required to file an affidavit alongside the property deed that lists each beneficial owner’s full legal name, date of birth, current business address, and a unique identification number from an approved form of identification. The affidavit must also include the company’s registered agent and business address for service of process.
Penalties and local enforcement
Municipalities would have the authority to enforce the disclosure requirement. Any company that fails to comply could face civil penalties of $5,000 per violation, collected by the municipality where the property is located.
The legislation also gives towns additional power to hold absentee or anonymous owners accountable for unpaid municipal fines. Under the bill, a municipality could, by ordinance, designate that unpaid housing, building, or health code violations—or penalties assessed under the new disclosure law—become a lien on the property if not paid within 12 months.
Transparency push in housing market
Supporters of the measure say the bill is designed to improve transparency amid growing concerns over anonymous corporate property ownership, which has been linked to absentee landlords and limited local accountability in housing maintenance.
Lawmakers say the disclosure requirement would help municipalities track property ownership, enforce local codes more effectively, and protect tenants living in homes owned by out-of-state LLCs.
Bill heads for full Senate consideration
The legislation, prefiled for the 2026–2027 session, includes technical revisions completed prior to the committee’s approval. The measure now advances to the full Senate for further consideration. If enacted, the law would take effect immediately.
Committee members said the $5,000-per-violation penalty added in the latest amendment reflects a stronger enforcement mechanism to ensure compliance and deter shell companies from concealing ownership.
