Following are examples of when an Affidavit should be recorded with your deed:
For New Construction
Deeds for new construction require that an affidavit be filed with the deed, stating the transfer is for new construction; no discount is offered for new construction.
For Partial Exemption of Realty Transfer Fees (RTFs)
To be eligible for Senior Citizen Exemption, Grantor must be 62 years of age or over, and owned and occupied property at time of sale. Property must be one or two family residential with no joint owners other than spouse or other exempt owners.
For Blind or Disabled exemption
To be eligible for exemption, owner must be legally blind or totally disabled in a one- or two-family home owned and occupied by Grantor at time of sale. No joint owners other than spouse or other exempt owner. Disabled owner must not be employed and receiving any disability payments.
For Low and Moderate Income Housing
To be eligible for Low and Moderate Income Housing, property must be affordable according to H.U.D. standards and meet requirements of region. Must be reserved for occupancy and subject to resale controls.
For Properties Exceeding $1,000,000 Paid by Grantee
A fee on the transfer of real property classified as 2 – 3A – 4A or 4C(Cooperative Unit), whether improved or not, for consideration in excess of $1,000,000, of 1% of the entire amount of consideration, is now imposed on the grantee, or buyer.
Proceeds from the Realty Transfer Fee provide support for the Public Health Priority Fund, shore protection initiatives, housing programs, extraordinary special education and municipal aid, and direct aid to New Jersey Counties.
For Transfer Tax Fees for Sheriff’s Deed
There is a separate affidavit to be submitted with Sheriff’s Deeds. As a general rule, in the case of a Sheriff’s Deed confirming a sheriff’s sale, the amount of the realty transfer fee shall be computed upon the amount of the accepted bid for the property sold:
- Where, however, the sale is for delinquent taxes or an assessment, no fee is imposed.
- Where a deed to real estate is executed by a sheriff to a mortgagee who bids the property at a foreclosure sale to satisfy a mortgage lien, the Realty Transfer Fee will be computed upon the amount bid for the property plus the remaining amount of any superior mortgage liens.
WHEN AFFIDAVIT MUST BE ANNEXED TO DEED: Please refer to instructions on back of affidavit.
For Total Exemption from the RTF
The fee imposed by the Act shall not apply to a deed:
- For consideration of less than $100.00.
- By or to the United States of America, this State, or any instrumentality, agency or subdivision thereof.
- Solely in order to provide or release security for a debt or obligation.
- Which confirms or corrects a deed previously recorded.
- On a sale for delinquent taxes or assessments.
- On partition.
- By a receiver, trustee in bankruptcy or liquidation, or assignee for the benefit of creditors.
- Eligible to be recorded as an ‘ancient deed’ pursuant to R.S. 46:16-7.
- Acknowledged or proved on or before July 3, 1968.
- Between husband and wife, or parent and child.
- Conveying a cemetery lot or plot.
- In specific performance of a final judgment.
- Releasing a right of conversion.
- Previously recorded in another county and full realty transfer fee paid or accounted for as an evidenced by written instrument, attested to be the grantee and acknowledged by the county recording officer of the county of such prior recording, specifying the county, book, page, date or prior recording, and amount of realty transfer fee previously paid.
- By an executor or administrator of a decedent to as an devisee or heir to effect distribution of the decedent’s estate in accordance with the provisions of the decedent’s will or the intestate laws of this State.
- Recorded within 90 days following the entry of a divorce decree which dissolves the marriage between grantor and grantee.
* Affidavits are available on the New Jersey Department of Treasury web site.