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Realty Transfer Fee
Overview

Description
The Realty Transfer Fee is imposed upon the recording of deeds evidencing transfers of title to real property in the State of New Jersey. The Realty Transfer Fee is calculated based on the amount of consideration recited in the deed.

The Realty Transfer Fee does not apply to a deed: for a consideration of less than $100; by or to the United States of America, this State, or any instrumentality, agency, or subdivision thereof; solely in order to provide or release security for a debt or obligation; which confirms or corrects a deed previously recorded; on a sale for delinquent taxes or assessments; on partition; by a receiver, trustee in bankruptcy or liquidation, or assignee for the benefit of creditors; eligible to be recorded as an “ancient deed” pursuant to R.S. 46:16-7; acknowledged or proved on or before Ju­ly 3, 1968; between husband and wife, or parent and child; conveying a cemetery lot or plot; in specific performance of a final judgment; releasing a right of reversion; previously recorded in another county and full Realty Transfer Fee paid or accounted for, as evidenced by written instrument, attested by the grantee, and acknowledged by the county recording officer; by an executor or administrator of a decedent to a devisee or heir to effect distribution of the decedent’s estate in accordance with the provisions of the decedent’s will or the intestate laws of this State; recorded within 90 days following the entry of a divorce decree which dissolves the marriage between grantor and grantee; issued by a cooperative corporation, as part of a conversion of all of the assets of the cooperative corporation into a condominium, to a shareholder upon the surrender by the shareholder of all of the shareholder’s stock in the cooperative corporation and the proprietary lease entitling the shareholder to exclusive occupancy of a portion of the property owned by the ­corporation.

Chapter 103, P.L. 2007, the Civil Union Act, became effective on February 19, 2007. This law grants civil union couples the same benefits, protections, and responsibilities under law as are granted to spouses in marriage. The law required amendatory language pertaining to partial and total exemptions from the Realty Transfer Fee to be included on the Affidavit forms (RTF-1 and RTF-1EE) and other Property Administration forms.

Rate
In accordance with Chapter 66, Laws of 2004, as amended by Chapter 19, Laws of 2005, the level or rate of the Realty Transfer Fee is as follows:

Standard Transactions and New Construction
Total Consideration not Over $350,000
Consideration Rate/$500    
over but not over      
$0 $150,000 $2.00    
150,000 200,000 3.35    
200,000 350,000 3.90    
         
Total Consideration Over $350,000
Consideration Rate/$500    
         
over but not over      
$0 $150,000 $2.90    
150,000 200,000 4.25    
200,000 550,000 4.80    
550,000 850,000 5.30    
850,000 1,000,000 5.80    
1,000,000 * 6.05    
         

Senior Citizens or Blind or Disabled Persons; Low and Moderate Income Housing

Total Consideration not Over $350,000
Consideration Rate/$500    
over but not over      
$0 $150,000 $.50    
150,000 350,000 1.25    
         
Total Consideration Over $350,000
Consideration Rate/$500    
over but not over      
$0 $150,000 $1.40    
150,000 550,000 2.15    
550,000 850,000 2.65    
850,000 1,000,000 3.15    
1,000,000 * 3.40    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional fee where consideration is over $1 million
Effective February 1, 2005, a 1% fee is imposed upon grantees (buyers) on property transfers for consideration in excess of $1 million for property class 2 “residential”; class 3A “farm property (regular)” if effectively transferred with other property to the same grantee; and cooperative units, which are class 4C. The 1% fee is imposed on the entire amount of such consideration recited in the deed. The 1% fee is not imposed upon organizations determined by the Federal Internal Revenue Service to be exempt from Federal income taxation that are the buyers in deeds for a consideration in excess of $1 million.

Chapter 33, P.L. 2006, effective on August 1, 2006, provides that:

  • A fee of 1% is imposed on Class 4A “commercial properties” for an entire consideration in excess of $1 million as well as the classes already incurring the 1% fee.
  • The 1% fee does not apply if real property transfer is incidental to a corporate merger or acquisition and the equalized assessed value of the real property transferred is less than 20% of the total value of all assets exchanged in the merger or acquisition.
  • Buyers (grantees) in deeds involving Class 4A sales recorded on or before November 15, 2006, that were transferred pursuant to a contract fully executed before July 1, 2006, who remit the 1% fee shall have it refunded by filing a Claim for Refund with the Division within one year following the recording date of the deed.
  • Affidavit of Consideration for Use by Seller (Form ­RTF­‑1) is required for all Class 4 property deed ­recordings.
  • A fee of 1% is imposed on nondeed transfers of a controlling ­interest in an entity which possesses, directly or ­indirectly, a controlling interest in classified real property, payable to the Director, by the purchaser of the controlling ­interest.

Disposition of Revenues
The Realty Transfer Fees per $500 of consideration will be allocated according to the type of transaction as follows: Priority Fund and the State Extraordinary Aid Account. In Fiscal Year 2007, the Extraordinary Aid Account received $105,903,326.


Last Updated: Wednesday, 09/29/10



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