Short answer
The seller. New Jersey's Division of Taxation says the seller is statutorily responsible for the Realty Transfer Fee and the Graduated Percent Fee charged on sales over $1 million, which runs from 1 percent up to 3.5 percent of the price. Older Division guidance described a 1 percent fee paid by buyers, so confirm the settlement figures with your attorney.
What the graduated percent fee is
The Division of Taxation's Realty Transfer Fee page describes a Graduated Percent Fee recorded with the deed. It is 1 percent of the total consideration if the price exceeds $1,000,000 but not $2,000,000, 2 percent if over $2,000,000 but not $2,500,000, 2.5 percent if over $2,500,000 but not $3,000,000, 3 percent if over $3,000,000 but not $3,500,000, and 3.5 percent above $3,500,000. On a $1,500,000 sale, 1 percent of the total consideration would be $15,000. On a $2,200,000 sale, 2 percent would be $44,000.
What kind of property it covers
The page says the fee applies to deeds where the land is classified as Class 2 residential, Class 3A where the property is a farm and the farmland contains a building or structure for residential use, Class 4A commercial other than industrial or apartment, and Class 4C cooperative units. It also lists a form, RTF-1EE, for claiming exemptions from the graduated percent fee. A property record card or the closing attorney can tell you your property's class.
Why you may hear that buyers pay
The Division of Taxation's current Realty Transfer Fee page says the seller is statutorily responsible for both the Realty Transfer Fee and the Graduated Percent Fee. The Division's undated guide on buying or selling a home still describes an additional 1 percent fee paid by buyers on sales of $1 million or more, which reflects the older rule. Follow the current fee page, and have your attorney and title company confirm how the settlement statement will charge it before you sign.
Negotiate it before you sign
Ask the buyer's attorney and the title company who the settlement statement will charge. If the seller is responsible, the fee can reduce your proceeds by thousands of dollars. Put the answer in the contract rather than leaving it for closing day. If your price is near $1 million, a modest price change can matter because the percent fee applies to the total consideration once the threshold is crossed. Ask your attorney whether it does at your price.
Smaller houses and cash sales
Most houses Kaizen Home Buyers sees sit below the $1 million line, where the graduated percent fee does not apply. We make cash offers on New Jersey houses as-is, with no repairs and no agent commission. We can give an offer within 24 hours and close in 14 to 30 days or on the date you choose. Call 267-329-0084. For an expensive property, listing with an agent may bring a higher price, so compare net proceeds both ways.