Bill > A07296

This bill establishes new regulations for limited liability companies (LLCs) owning residential real estate in New York, primarily focusing on limiting ownership and increasing transparency. The legislation restricts any individual from being a beneficial owner of more than three covered LLCs that own residential properties in the state. When an LLC wants to transfer or acquire residential property, it must disclose the names and identifying information of all beneficial owners (defined according to federal banking regulations) to the Department of State and include a beneficial owner's affidavit during the deed recording process. The bill imposes significant penalties for non-compliance, including potential civil actions by the Attorney General, fines up to $25,000 for ownership violations, and misdemeanor charges with fines up to $10,000 for filing false disclosures. Additionally, county clerks are required to notify the Secretary of State about property conveyances involving LLCs and transmit accompanying disclosure documents. The law is set to take effect on January 1, 2026, and aims to increase accountability and prevent excessive residential property ownership by LLCs by mandating greater transparency about who actually owns these properties.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A7296