Short answer
Yes. Every seller must furnish a completed GIT/REP form at closing to record the deed. It tells the state whether an estimated income tax payment is due. New Jersey residents usually file GIT/REP-3, which exempts them from paying at closing. Nonresidents use GIT/REP-1 or GIT/REP-2.
What the form is for
The Division of Taxation explains that GIT/REP stands for Gross Income Tax Required Estimated Payment, and that the form is recorded with the deed when ownership of New Jersey property is transferred. Its purpose is to decide whether an estimated tax payment is required at the time the deed is recorded. All sellers are required to furnish a completed GIT/REP form at closing to record the deed, and most sellers also provide the RTF-1 Affidavit of Consideration.
Who signs
Each owner of the property being sold, including those with life estate rights, must submit a GIT/REP form, completed by the sellers or an authorized representative. If there is more than one owner, the form reflects each owner's percentage, but married and civil union couples are treated as one owner. The guide adds that estates and trusts should complete one GIT/REP form, which can carry multiple signatures for trustees or executors if needed.
Residents: GIT/REP-3
A New Jersey resident, including an estate or trust, who sells a home and stays a resident files form GIT/REP-3, the Seller's Residency Certification/Exemption. The guide says it is due at closing and exempts the seller from an estimated payment then, and the seller instead pays all income tax, including tax on any capital gain, when filing the NJ-1040. The form lists 14 exemptions. Some common ones are being a New Jersey resident, a total price of $1,000 or less, being a business entity, or being a nonresident claiming the principal residence exclusion.
Other versions
GIT/REP-1 is the nonresident seller's tax declaration, and GIT/REP-2 is the receipt for a prepayment of the tax. GIT/REP-4 is a waiver request when the seller believes the transaction is exempt but the reason is not on the GIT/REP-3 list, and the seller should submit it to the Division before closing. GIT/REP-4a is used to correct mistakes on a deed with no consideration. The settlement agent files the forms with the deed at the county clerk.
Getting through closing smoothly
Ask your closing attorney which form fits, and sign it early. A missing form can hold up the recording of the deed. Kaizen Home Buyers makes 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. Whether you sell for cash or list with an agent, these forms are part of every New Jersey closing.