Regulators Quietly Change Stance on Condos in LLC Law
The New York State Department of Taxation and Finance has issued a new memo relating to establishing beneficial ownership for LLCs. The original bill suggested the law was limited to buildings containing one to four units. However, the new memo notably made no mention of condos, shocking the real estate industry in New York City, where LLCs are common in property transactions, particularly among celebrities and high-profile buyers.
"The original legislation never said condos and somewhere along the line, someone decided condos should be included," said Real Estate attorney Stuart Saft.
Real Estate attorneys and other industry professionals appealed to the state to modify the law after the department's original guidance came out.
"Those of us in the field contacted the state and the city and the title insurance companies, and pointed out that the language that was in the initial guidance wasn’t in the statute and wasn’t what was meant to be covered," Mr. Saft added.