Who pays the realty transfer fee when selling a house in New Jersey?

The New Jersey Division of Taxation says the State imposes a Realty Transfer Fee on the seller of real property for recording a deed for the sale. This is the state's fee. Ask your closing agent for any other recording charges.

For consideration not over $350,000, the fee is $2.00 per $500 on amounts up to $150,000, $3.35 per $500 on the portion from $150,000 to $200,000, and $3.90 per $500 on the portion from $200,000 to $350,000. For a sale at $300,000, that is $600, plus $335, plus $780, or $1,715. Different schedules apply to higher prices. That example is an illustration. Confirm the number with your closing agent. The schedule is progressive, which means each slice of the price is charged at its own rate. That is why a sale at $300,000 does not simply multiply $300,000 by one number. If you want to double-check a quote, split the price into slices, apply each rate to its slice and add them up. The closing agent will do this for you, but knowing the method helps you spot mistakes. If the number looks off, ask the closing agent to show the calculation.

The Division says a deed by an executor or administrator of a decedent to a devisee or heir to effect distribution of the estate is exempt. Transfers between husband and wife or parent and child, and transfers recorded within 90 days of a divorce decree, can also be exempt. A reduced rate applies to senior citizens, the blind and the disabled, ranging from $0.50 to $3.40 per $500 depending on price. A sale to a third party does not qualify as a distribution.

Using the Division's schedule for consideration over $350,000, a $400,000 sale works out this way. The first $150,000 is charged at $2.90 per $500, which is $870. The next $50,000 is charged at $4.25 per $500, which is $425. The remaining $200,000, up to $550,000, is charged at $4.80 per $500, which is $1,920. The total is $3,215. Again, this is an illustration. Higher-priced sales carry an additional graduated fee, and your closing agent will confirm the exact amount. Compare the number to the net sheet from each buyer.

The fee comes out of the seller's proceeds unless the contract says otherwise. When comparing a listing with a cash offer, ask for a net sheet from each buyer. Kaizen Home Buyers buys New Jersey houses as-is for cash, with no repairs and no agent commission. We make an offer within 24 hours and can close in 14 to 30 days or on your date. Call 267-329-0084.