Home Buying in New Jersey>Question Details

Grace, Home Buyer in New Jersey

In NJ, who pays the Realty Transfer Fee for a new construction?

Asked by Grace, New Jersey Thu Oct 4, 2007

I am currently in attorney review and was advised that I (buyer) must pay the realty transfer fee. Is this accurate? I read on the NJ state taxation website that it is usally paid by the seller.

Help the community by answering this question:


Debbie is right! Sellers normally pay for realty transfer tax. If you would like to have a Transfer tax calculator just visit http://www.njhometax.com/Home.html and click on how much do I owe.

Now back to your question about new construction. I have just sold a new construction and represented the buyers in the transaction. The seller tried in their sales agreement to make the buyers pay for the transfer tax which we fought and finally had the seller agree to pay.
2 votes Thank Flag Link Fri Oct 5, 2007
Realty Transfer Fee is paid by the seller. A buyer tax is paid by the buyer on properties over 1M. This is commonly called the Mansion Tax or Luxury Tax.

All things are negotiable. I have seen contracts where a seller will pay the buyers luxury tax in order to make the deal go. I have mostly seen that when the sales price was 1.050M, and the buyers were considering looking at properties under 1M to avoid the luxury tax.
4 votes Thank Flag Link Thu Oct 4, 2007
Deborah Madey, Real Estate Pro in Brick, NJ
Banks and developers will often try to shift this fee to the buyer, as they use "their" contracts vs. a standard contract form that Realtors use. In their contracts, if often stipulates that the buyer will pay. Builders and banks both have reason to be more negotiable today, so don't hesitate to ask for modifications to their standard terms and contract.
1 vote Thank Flag Link Thu Nov 1, 2007
Deborah Madey, Real Estate Pro in Brick, NJ
Typically the Seller pays the Transfer Fee. My Experience with The Manson tax is that it is typically paid by the Buyer, but can be negotiated between the parties to share the fee.
0 votes Thank Flag Link Mon Jan 6, 2014
Usually the Realty Transfer Fee is paid by the seller. Obviously they are trying to negotiate that financial responsibility as a pass along to you. They would pay it and the sellers would want reimbursement from you,
0 votes Thank Flag Link Mon Apr 15, 2013
It is usually the sellers reponsiblity. But like anything else it is negotiable and has to be agreed upon by both parties.
0 votes Thank Flag Link Tue Jun 10, 2008
It should be the seller's responsibility but contractors in new homes frequently insert in their contracts that the buyer will pay the fee. This can amount to thousands and thousands of unearned income by the big builders. It is unfair to the buyers and should be stopped. I recently brought this to the attention of a NJ legislator who is placing a bill in the NJ Sate Assembly to make this unfair practice illegal in the future. Hope this helps.
Rich Visotcky, Esq.
0 votes Thank Flag Link Thu May 22, 2008
My attorney told me that in NJ the seller should pay the transfer tax. But in new homes sometimes a portion about 50% is transferred to Buyer. by the sellers
0 votes Thank Flag Link Sat Feb 16, 2008
In my contract, it is listed as the "Realty Transfer Fee." My attorney advised me that in new constructions and bank owned properties that the buyer is responsible for this fee. Correct?
0 votes Thank Flag Link Sun Oct 7, 2007
Hi Grace,

Are you referring to a private transfer fee, or transfer tax? There is a big difference...just to clarify...especially since you are referring to new construction...

Refer to: http://www.realtor.org/rmomag.NSF/pages/frontlinesledesep07
0 votes Thank Flag Link Fri Oct 5, 2007
Erin Stumpf…, Real Estate Pro in Sacramento, CA
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