Realty Transfer fee in NJ

[Rashida]

In NJ the prices of home have declined slightly and has caused a surge in investors swooping up the properties in the name of LLCs. They tranfer Title to the properties to different names, at times, to the same individuals under a different LLC with a consideration of $100. Do they owe a Realty Transfer fee? The answer is YES!

In September 2006, the Division of Taxation enacted a set of regulations which address the recording, registration, filing and indexing of deeds and other instruments. N. J. A.C 18:16-6.1 is the regulation which specifically answers this question. It reads,
"A deed transferring real property from one legal entity to another legal entity that has common ownership is subject to the Realty Transfer Fee. The consideration that the Realty Transfer Fee is calculated on includes the monetary value of stock transferred or contribution to capital by the grantor. When a value is indeterminable, the Realty Transfer Fee is calculated on the assessed value of the property being conveyed on the date of transfer adjusted to reflect the true value as determined by the Director’s Ratio established for that municipality for the current year."

“Consideration” is defined in N. J. A. C. 18:16-1.1 as
“…the actual amount of money and the monetary value of any other thing of value constituting the entire compensation paid or to be paid for the transfer of title…including: (1) The remaining amount of any prior mortgage to which the transfer is subject; (2) Any other lien or encumbrance not paid, satisfied or removed in connection with the transfer of title…”

Time to Resolve your Title issues!

[webmaster]

Rashida, perhaps you could explain to the community how your post has anything to do with discussions of blogging? Please read the forum rules (to the right) - you have posted 3 duplicate posts in muliple forums, and one completely out of context post here at the blogs forums.

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