Requires certain information to be provided on a real property transfer form

1 Co-sponsor

• Liz Krueger

BILL NUMBER:S1268

Title of bill

An act to amend the real property law, in relation to clarifying information collected on a real property transfer form

Purpose

This legislation would change the Real Property Law to make available necessary information including names and addresses of members of limited liability corporations to local municipalities to assist them in their efforts to enforce codes, properly administer the assessment process and collect judgments and taxes.

Summary of provisions

Section 1 amends subparagraph 7 and 8 of subparagraph ii of subdivision 1-e of section 333 of the real property law, as amended by section 1 of part B of Chapter 57 of the laws of 2004 and adds two new subparagraphs 9 and 10 to require that a purchaser of a parcel, in the event it is a limited liability company, corporation or other such entity, must include the name of a company, the place of business of the company, the name of a responsible party who has an interest in the company, and a telephone number where such responsible party may be contacted.

Such requirements would apply to all counties in New York State, including those comprising New York City.

Existing law

Existing law does not require that member(s) of a LLC execute articles of organization, specify actual place of business, or that the members of such LLC be listed.

Justification

Residential properties are routinely acquired by Limited Liability Companies (LLCs) and often the buyer's signature on the real property transfer form (RP-5217) is illegible, with a post office box provided for the address. Current law does not require that members of a LLC or the LLC's actual place of business be listed on such forms.

As a result of these oversights in the current Real Property law, serious problems frequently arise for municipal code enforcement and assessment officials in carrying out the enforcement of the housing code, collection of fines and judgments, and delinquent tax collection. This inability to contact or provide legal service of notices to an individual responsible for the property seriously affects the quality of life in neighborhoods with multiple properties owned by LLC's.

Legislative history

2011-2012 (S.1409) Referred to Judiciary 2009-2010 (S.5062) Referred to Judiciary

Fiscal implications

None.

Local fiscal implications

None.

Effective date

This act shall take effect 180 days after it shall have become law.