23
Sep 2019
NY LLC Disclosure Requirements
Cuomo Signs Additional NY LLC Disclosure Requirements into Law, Effective Today
By admin

As a result of new legislation amending §1409 of the Tax Law and §11-2105 of the Administrative Code of the City of New York, all deeds granting title to a residential real property that contains 1 to 4 family dwelling units when the Grantor and/or Grantee is an LLC must include a list of the names and business addresses of all “members, managers or authorized persons” of said LLC. 

The legislation applies to all such deeds that are recorded on or after Monday September 23.

This list is to be included with the TP-584 and NYC RPT forms at recording, and must continue until ultimate ownership by a natural person is achieved. 

For example, if any member, manager or authorized person of the LLC is a partnership or business entity, the list must include the names and business addresses of all that partnership’s or entity’s shareholders, directors, officers, members, managers and partners. 

Further, if any of those parties is a business entity, the list must include the names and business addresses of the interested parties of that partnership or business entity.

Unanswered Questions

Because the public was given very little time to comply with — or understand — the statute, many unanswered questions remain, among them when recordings will be rejected for failure to have the required information attached to the TP-584 or NYC RPT form. The NYSLTA is currently drafting a letter to the Commissioner of Taxation requesting guidance on these and other questions.  

Important Information

  • Form TP-584 has a box to check for Type of Property Conveyed. It does not list a 1- to 4-family residential property but does have a box to check for a 1- to 3-family. The disclosure applies if that box is checked. It also applies if the property is a 4-family and the “Other” box is checked.
  • The new LLC disclosure requirement applies even if the deed is for no consideration. A TP-584 or NYC RPT must be filed even if no tax is due. It is recommended you have these forms completed at or prior to closing.

Questions about NY LLC Disclosure Requirements? Contact WWLT

Should you have any questions on the new requirements and how they will affect your transaction, don’t hesitate to contact us

We are here to help!

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