Assembly Commerce, Economic Development and Agriculture Committee Statement to Assembly, No. 1233 (2026)

Summary

Statement of the Assembly Commerce, Economic Development and Agriculture Committee, State of New Jersey, dated January 5, 2026, reporting favorably and with committee amendments Assembly Bill No. 1233. As amended, the bill would require a limited liability company that is the grantee of a deed for residential real property containing one to two dwelling units, or a multiple dwelling, to disclose each beneficial owner when it files the deed for recording. It would also let a municipality direct by ordinance that unpaid housing, building or health code charges issued to certain limited liability companies become a lien on the property. The amendments narrow "beneficial owner" to an individual owning not less than 25 percent of the ownership interests and provide for municipal enforcement.

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ASSEMBLY COMMERCE, ECONOMIC DEVELOPMENT AND AGRICULTURE
COMMITTEE

STATEMENT TO

ASSEMBLY,
No. 1233

with
committee amendments

STATE
OF NEW JERSEY

DATED: JANUARY
5, 2026

The Assembly Commerce, Economic Development and
Agriculture Committee reports favorably and with committee amendments Assembly
Bill No. 1233.

As amended, this bill would require a limited
liability company or foreign limited liability company that is the grantee of a
deed for residential real property containing one to two dwelling units, or
that is a multiple dwelling, to disclose each beneficial owner of the company
when it files a deed for recording. The bill defines "beneficial owner."

The bill requires the company to submit for recording,
together with the deed, an affidavit containing the name and business address
of the registered agent for service of process, along with the following
information of each beneficial owner for service of process of the limited
liability company: (1) full legal name; (2) date of birth; (3) current business
street address; and (4) a unique identifying number from an acceptable
identification document.

The bill would also permit a municipality to direct,
by ordinance, that charges issued to certain limited liability companies or
foreign limited liability companies pursuant to a housing code, building code,
or health code will become a lien on the property if the charge remains unpaid
on the first day of the 13th month next following the date when the charge
becomes due and owing.

This bill was pre-filed for introduction in the
2024-2025 session pending technical review. As reported, the bill includes the
changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS :

The committee amended the bill to:

(1) Require the identification of each beneficial
owner, instead of the registered agent of an LLC, when it files a deed for
recording;

(2) Require additional identifying information from
beneficial owners;

(3) Expand a temporary exemption from a notice
requirement to an additional class of LLCs;

(4) Narrow the definition of the term “beneficial
owner” to mean, with respect to an entity:

§ an individual who, directly or indirectly, owns not less than 25
percent of the ownership interests of the entity; and who holds the greatest
ownership interest in the entity; or

§ for an entity in which no individual owns greater than 25 percent
of the ownership interests of the entity, an individual who, directly or
indirectly, holds the greatest ownership interest in the entity;

(5) Extend the
disclosure requirements of the bill to the registered agent of the company; and

(6) Specify that,
if the registered agent is not a member of the company, the disclosure
requirements of the bill would apply to at least one member of the company;

(7) Provide for
municipal enforcement; and

(8) Make certain technical changes.

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