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The Realty Transfer Fee (RTF) was established in New Jersey in 1968 to offset the costs of tracking real estate transactions. Sellers pay the fee, which is based on their property’s sales price, upon the transfer of the deed to the buyers. Payment of the Fee is a prerequisite for recording the deed. It should be noted that in addition to the transfer fee paid by the sellers, a 1% fee must be paid by the buyer on all transactions over $1,000,000 in all commercial and residential property classes. This means that the seller must pay 1% of the sales price upon recording the deed.
The fee monies are usually collected at the real estate closing by the legal representatives or title insurance agents responsible for recording the deed at the county registry offices. Funds from the RTF are then shared between the state and counties. The state portion of the revenue is allocated to neighborhood revitalization, shore protection and the state's general fund. The counties are responsible for disbursement of their portion of the revenue.
The RTF does not apply to sales for less than $100, or those transactions made between husbands and wives or parents and children. Senior citizens, blind or disabled persons and low- and moderate- income housing continue to be exempt from the state portion of the basic fee. An Affidavit of Consideration is to be filed with any deed in which a full or partial exemption is claimed from the RTF. Specifically, an Affidavit of Consideration must be filed with all deeds transferring "new construction" properties in addition to the existing claims for a partial exemption.
More information on the RTF is available from the New Jersey Department of the Treasury or by calling (609) 292-7974.
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