Buyer Beware: More Disclosure Requirements For LLCs

It has become increasingly difficult for homebuyers to play hide-and-seek in New York. For decades, the wealthy, celebrities, and other people concerned about their privacy have enjoyed the privilege of anonymity by buying and selling real estate through limited liability companies ("LLCs"). Not only have LLCs, when properly structured, offered privacy, but, as their names imply, they have had the advantage of shielding their owners from a variety of personal claims.

The use of LLCs for anonymity was curtailed by the New York State Legislature on September 13, 2019, with the enactment of expanded disclosure requirements for LLCs buying or selling certain residential real property.