If you are buying or selling real estate in New Jersey, you may be wondering about the realty transfer fee. This fee is a tax that is paid to the state when a property is transferred from one owner to another. It is calculated as a percentage of the sale price of the property and is generally paid by the seller. Here's what you need to know about the realty transfer fee in New Jersey:
1. The realty transfer fee is based on the purchase price of the property. The fee is calculated as a percentage of the purchase price, with the exact rate depending on the value of the property. The calculation can be complicated, but the higher the purchase price, the more will be due to the State of New Jersey. The State explains their calculations and provides tables showing what the realty transfer fee would be for a specific purchase price here.
2. Exemptions and reductions may apply. There are certain circumstances under which the realty transfer fee may be reduced or waived. For example, the fee may be waived for transfers between spouses, or for transfers to a charitable organization. There are also partial exemptions for qualifying senior citizens aged 62 or older or qualifying disabled persons.
3. The realty transfer fee is collected by the county clerk and is used to fund state programs, including affordable housing initiatives and environmental protection efforts.
4. Failure to pay the realty transfer fee can have serious consequences. If the realty transfer fee is not paid, the county clerk may place a lien on the property. This can make it difficult for the owner to sell or refinance the property until the fee is paid.
If you are buying or selling real estate in New Jersey, it is important to be aware of the realty transfer fee and how it may affect your transaction. Contact the Law Office of Joseph A. DiPiazza, LLC to help you understand your obligations and ensure that the RTF payment amount is calculated at the minimum required level for each transaction.