BBWG News

New Acris Disclosure Requirements When Selling or Purchasing Residential Real Estate Through a Limited Liability Company

Sep 24, 2019

Effective September 13, 2019, New York City Administrative Code Section 11-2105 and New York State Tax Law Section 1409(a) were amended to require that, henceforth, the New York City Real Property Transfer Tax Return (RPT) and the New York State Combined Transfer Tax Return (TP-584) for the sale of residential real property (i.e., condos and homes) sold or purchased by a limited liability company (“LLC”) must disclose the names and business addresses of all members, managers, and any other authorized persons of the LLC or if none, the business addresses of all shareholders, directors, officers, members, managers, or authorized persons of any LLC or other business entity that are to be the members, managers or authorized persons of such LLC.

In addition, if any member, manager or authorized person of the LLC is itself an LLC or other business entity, the names and addresses of the shareholders, directors, officers, members, managers and partners of that LLC or other entity must also be disclosed, until full disclosure of the ultimate ownership by natural persons is accomplished.

The upshot of these changes is that the City and State are effectively no longer permitting sellers and purchasers of condominiums and other residential real property to sell and purchase anonymously—these laws now require both sellers and purchasers that are LLC’s (and/or which include LLC’s as members) to disclose who their members are down to the actual persons.

If you have any further questions regarding this matter, please contact Daniel Altman, Co-Managing Partner and Chair of the Transactional Department.

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