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In the state of New Jersey, when real property changes hands, a vital piece of documentation comes into play - the Affidavit of Consideration RTF-1 form. This document, a cornerstone in the process of real estate transactions, is essential for accurately reporting the consideration involved in the transfer of property. It serves not only as a declaration of the transaction's value but also acts as a basis for determining the Realty Transfer Fee (RTF), which is a prerequisite for recording the deed. The form requires detailed information about the seller and buyer, the property in question, and the total consideration exchanged. Its completion and submission are critical steps that ensure compliance with state regulations, helping to maintain a transparent and fair property market. By accurately filling out and submitting this affidavit, parties involved in real estate transactions demonstrate their commitment to adhering to state laws, thus facilitating a smoother transfer of property ownership.

Form Preview Example

RTF-1 (Rev. 4/17)
MUST SUBMIT IN DUPLICATE

STATE OF NEW JERSEY

AFFIDAVIT OF CONSIDERATION FOR USE BY SELLER (P.L.1968, c. 49, as amended through P.L. 2006, c. 33) (N.J.S.A. 46:15-5 et seq.)

BEFORE COMPLETING THIS AFFIDAVIT, PLEASE READ THE INSTRUCTIONS ON THE REVERSE SIDE OF THIS FORM.

STATE OF NEW JERSEY

 

 

 

 

}ss. County Municipal Code

FOR RECORDER’S USE ONLY

 

 

 

 

Consideration

$ _____________________

 

 

RTF paid by seller

$ ___________________

 

COUNTY

_________________ ________________

Date___________ By _____________________

 

MUNICIPALITY OF PROPERTY LOCATION _________________________

 

 

*Use symbol “C” to indicate that fee is exclusively for county use.

(1)PARTY OR LEGAL REPRESENTATIVE (See Instructions #3 and #4 on reverse side)

Deponent, ______________________________, being duly sworn according to law upon his/her oath,

(Name)

deposes and says that he/she is the____________________________ in a deed dated ________________________ transferring

(Grantor, Legal Representative, Corporate Officer, Officer of Title Company, Lending Institution, etc.)

real property identified as Block number ___________________________ Lot number __________________________located at

_______________________________________________________________________________

and

annexed

thereto.

 

(Street Address, Town)

 

 

 

 

(2)

CONSIDERATION $__________________(Instructions #1 and #5 on reverse side) no prior mortgage to which property is subject.

_________________________________________________________________________________________________________

 

 

(3)

Property transferred is Class 4A 4B 4C (circle one). If property transferred is Class 4A, calculation in Section 3A below is required.

(3A)REQUIRED CALCULATION OF EQUALIZED VALUATION FOR ALL CLASS 4A (COMMERCIAL) PROPERTY TRANSACTIONS: (See Instructions #5A and #7 on reverse side)

Total Assessed Valuation ÷ Director’s Ratio = Equalized Assessed Valuation $_____________________ ÷ ____________% = $_________________________

If Director’s Ratio is less than 100%, the equalized valuation will be an amount greater than the assessed value. If Director’s Ratio is equal to or in excess of 100%, the assessed value will be equal to the equalized valuation.

(4)FULL EXEMPTION FROM FEE (See Instruction #8 on reverse side)

Deponent states that this deed transaction is fully exempt from the Realty Transfer Fee imposed by P.L. 1968, c. 49 as amended through P.L. 2004, c. 66 for the following reason(s). Mere reference to exemption symbol is insufficient. Explain in detail.

______________________________________________________________________________________________________________

(5)PARTIAL EXEMPTION FROM FEE ( Instruction #9 on reverse side)

NOTE: All boxes below apply to grantor(s) only. ALL BOXES IN APPROPRIATE CATEGORY MUST BE CHECKED. Failure to do so will

void claim for partial exemption. Deponent claims that this deed transaction is exempt from State portions of the Basic, Supplemental, and General Purpose Fees, as applicable, imposed by P.L. 1975, c. 176, P.L. 2004, c. 113 and P.L. 2004, c. 66 for the following reason(s):

______________________________________________________________________________________________________________________

A.SENIOR CITIZEN Grantor(s) 62 years of age or over. * ( Instruction #9 on reverse side for A or B)

B.BLIND PERSON Grantor(s) legally blind or; *

DISABLED PERSON Grantor(s) permanently and totally disabled receiving disability payments not gainfully employed*

Senior citizens, blind persons, or disabled persons must also meet all of the following criteria:

Owned and occupied by grantor(s) at time of sale.

Resident of State of New Jersey.

One or two-family residential premises.

Owners as joint tenants must all qualify.

*IN CASE OF HUSBAND AND WIFE, PARTNERS IN A CIVIL UNION COUPLE, ONLY ONE GRANTOR NEED QUALIFY IF TENANTS BY THE ENTIRETY.

________________________________________________________________________________________________________________________________________________

C.LOW AND MODERATE INCOME HOUSING (Instruction #9 on reverse side)

Affordable according to H.U.D. standards.

Reserved for occupancy.

Meets income requirements of region.

Subject to resale controls.

(6)NEW CONSTRUCTION (Instructions #2, #10 and #12 on reverse side)

Entirely new improvement.

Not previously occupied.

Not previously used for any purpose.

“NEW CONSTRUCTION” printed clearly at top of first page of the deed.

________________________________________________________________________________________________________________________________________________

(7)RELATED LEGAL ENTITIES TO LEGAL ENTITIES (Instructions #5, #12, #14 on reverse side)

No prior mortgage assumed or to which property is subject at time of sale.

No contributions to capital by either grantor or grantee legal entity.

No stock or money exchanged by or between grantor or grantee legal entities.

________________________________________________________________________________________________________________________________________________

(8)Deponent makes this Affidavit to induce county clerk or register of deeds to record the deed and accept the fee submitted herewith in accordance with the provisions of P.L. 1968, c. 49 as amended through P.L. 2006, c. 33.

Subscribed and sworn to before me

____________________________

______________________________

this

day of

, 20

Signature of Deponent

Grantor Name

_____________________________________

 

________________________________________

 

Deponent Address

Grantor Address at Time of Sale

 

_______ XXX-XX-X___________ _

______________________________

Last three

digits in Grantor’s Social Security Number

 

Name/Company of Settlement Officer

FOR OFFICIAL USE ONLY

Instrument Number___________________ County_________________

Deed Number_________________ Book __________ Page_________

Deed Dated ___________________ Date Recorded ________________

County recording officers shall forward one copy of each RTF-1 form when Section 3A is completed to:

STATE OF NEW JERSEY

PO BOX 251

TRENTON, NJ 08695-0251

ATTENTION: REALTY TRANSFER FEE UNIT

The Director of the Division of Taxation in the Department of the Treasury has prescribed this form as required by law, and may not be altered or amended without prior approval of the Director. For information on the Realty Transfer Fee or to print a copy of this Affidavit, visit the Division of Taxation website at: www.state.nj.us/treasury/taxation/lpt/localtax.htm

INSTRUCTIONS FOR FILING FORM RTF-1, AFFIDAVIT OF CONSIDERATION FOR USE BY SELLER

1.STATEMENT OF CONSIDERATION AND REALTY TRANSFER FEE PAYMENT ARE PREREQUISITES FOR DEED RECORDING

No county recording officer shall record any deed evidencing transfer of title to real property unless (a) the consideration is recited in the deed, or (b) an Affidavit by one or more of the parties named in the deed or by their legal representatives declaring the consideration is annexed for recording with the deed, and (c) for conveyances and transfers of property for which the total consideration recited in the deed is not in excess of $350,000, a fee is remitted at the rate of $2.00/$500 of consideration or fractional part thereof not in excess of $150,000; $3.35/$500 of consideration or fractional part thereof in excess of $150,000 but not in excess of $200,000; and $3.90/$500 of consideration or fractional part thereof in excess of $200,000. For transfers of property for which the total consideration recited in the deed is in excess of $350,000, a fee is remitted at the rate of $2.90/$500 of consideration or fractional part not in excess of $150,000; $4.25/$500 of consideration or fractional part thereof in excess of $150,000 but not in excess of $200,000; $4.80/$500 of consideration or fractional part thereof in excess of $200,000; $5.30/$500 of consideration or fractional part thereof in excess of $550,000 but not in excess of $850,000; $5.80/$500 of consideration or fractional part thereof in excess of $850,00 but not in $1,000,000; and $6.05/$500 of consideration or fractional part thereof in excess of $1,000,000, which fee shall be paid in addition to the recording fees imposed by, P.L. 1965 c. 123, Section 2 (C. 22A:4-4.1) as amended by, P.L. 2001, c. 370, through, P.L. 2004, c. 66, which fee shall be paid to the county recording officer at the time the deed is offered for recording/transfer. Of these fees, $.75/$500 of consideration or fractional part in excess of $150,000 paid to the State Treasurer is credited to the New Jersey Affordable Housing Trust Fund.

2.WHEN AFFIDAVIT MUST BE ANNEXED TO DEED

This Affidavit must be annexed to and recorded with all deeds when entire consideration is not recited in deed or the acknowledgement or proof of the execution, when the grantor claims a total or partial exemption from the fee, Class 4 property that includes commercial, industrial, or apartment property, and for transfers of “new construction.” (See Instructions #10 and #12 below.)

3.LEGAL REPRESENTATIVE

“Legal representative” is to be interpreted broadly to include any person actively and responsibly participating in the transaction, such as, but not limited to: an attorney representing one of the parties; a closing officer of a title company or lending institution participating in the transaction; a holder of power of attorney from grantor or grantee.

4.OFFICER OF CORPORATE GRANTOR/OFFICER OF TITLE COMPANY OR LENDING INSTITUTION

Where a deponent is an officer of corporate grantor, state the name of corporation and officer’s title or where a deponent is a closing officer of a title company or lending institution participating in the transaction, state the name of the company or institution and officer’s title.

5.CONSIDERATION

“Consideration” means in the case of any deed, 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 to the lands, tenements or other realty, including the remaining amount of any prior mortgage to which the transfer is subject or which is assumed and agreed to be paid by the grantee and any other lien or encumbrance not paid, satisfied or removed in connection with the transfer of title. (P.L. 1968, c. 49, Section 1, as amended.)

5A. CLASS 4A “COMMERCIAL PROPERTIES” DEFINED

Class 4A “Commercial properties” as defined in N.J.A.C. 18:12-2.2 means “any other type of income-producing property other than property in classes 1, 2, 3A, 3B, and those properties included in classes 4B and 4C.” A quarterly audit of all Class 4A sales submitted by the municipal assessor through the SR- 1A/equalization process will determine whether a Class 4A transaction was recorded without proper documentation and the required Affidavits of Consideration.

6.DIRECTOR'S RATIO

“Director’s Ratio” means the average ratio of assessed to true value of real property for each taxing district as determined by the Director, Division of Taxation, in the Table of Equalized Valuations promulgated annually on or before October 1 in each year pursuant to N.J.S.A. 54:1-35.1. The Table is used in the calculation and apportionment of distributions pursuant to the State School Aid Act of 1954.

7.EQUALIZED VALUE

“Equalized Value” means the assessed value of the property in the year that the transfer is made, divided by the Director’s Ratio. The Table of Equalized Valuations is promulgated annually on or before October 1 in each year pursuant to N.J.S.A. 54:1-35.1.

(Example: Assessed Value = $1,000,000; Director’s Ratio = 80%. $1,000,000 ÷ .80 = $1,250,000)

8.FULL EXEMPTION FROM THE REALTY TRANSFER FEE (GRANTOR/GRANTEE)

The fee imposed by this Act shall not apply to a deed:

(a)For consideration of less than $100; (b) By or to the United States of America, this State, or any instrumentality, agency or subdivision; (c) Solely in order to provide or release security for a debt or obligation; (d) Which confirms or corrects a deed previously recorded; (e) On a sale for delinquent taxes or assessments; (f) On partition; (g) By a receiver, trustee in bankruptcy or liquidation, or assignee for the benefit of creditors; (h) Eligible to be recorded as an “ancient deed” pursuant to N.J.S.A. 46:16-7; (i) Acknowledged or proved on or before July 3, 1968; (j) Between husband and wife/civil union partners, or parent and child; (k) Conveying a cemetery lot or plot; (l) In specific performance of a final judgment; (m) Releasing a right of reversion; (n) Previously recorded in another county and full Realty Transfer Fee paid or accounted for as evidenced by written instrument, attested to by the grantee and acknowledged by the county recording officer of the county of such prior recording, specifying the county, book, page, date of prior recording, and amount of Realty Transfer Fee previously paid; (o) By an executor or administrator of a decedent to a 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; (p) Recorded within 90 days following the entry of a divorce/dissolution decree which dissolves the marriage/civil union partnership between grantor and grantee; (q) Issued by a cooperative corporation, as part of a conversion of all of the assets of the cooperative corporation into a condominium, to a shareholder upon the surrender by the shareholder of all of the shareholder’s stock in the cooperative corporation and the proprietary lease entitling the shareholder to exclusive occupancy of a portion of the property owned by the corporation.

9.PARTIAL EXEMPTION FROM THE REALTY TRANSFER FEE (P.L. 1975, c. 176; P.L. 2003, c. 113; P.L. 2004, c. 66)

The following transfers of title to real property shall be exempt from State portions of the Basic Fee, Supplemental Fee, and General Purpose Fee, as applicable: 1. The sale of any one or two-family residential premises which are owned and occupied by a senior citizen, blind person, or disabled person who is the seller in such transaction; provided, however, that except in the instance of a husband and wife/partners in a civil union couple, no exemption shall be allowed if the property being sold is owned as joint tenants and one or more of the owners is not a senior citizen, blind person, or disabled person; 2. The sale of Low and Moderate Income Housing conforming to the requirements as established by this Act.

For the purposes of this Act, the following definitions shall apply:

“Blind person” means a person whose vision in his better eye with proper correction does not exceed 20/200 as measured by the Snellen chart or a person who has a field defect in his better eye with proper correction in which the peripheral field has contracted to such an extent that the widest diameter of visual field subtends an angular distance no greater than 20º.

“Disabled person” means any resident of this State who is permanently and totally disabled, unable to engage in gainful employment, and receiving disability benefits or any other compensation under any federal or State law.

“Senior citizen” means any resident of this State of the age of 62 or over.

“Low and Moderate Income Housing” means any residential premises, or part thereof, affordable according to Federal Department of Housing and Urban Development or other recognized standards for home ownership and rental costs occupied or reserved for occupancy by households with a gross income equal to 80% or less of the median gross household income for households of the same size within the housing region in which the housing is located, but shall include only those residential premises subject to resale controls pursuant to contractual guarantees.

“Resident of the State of New Jersey” means any claimant who is legally domiciled in this State when the transfer of the subject property is made. Domicile is what the claimant regards as the permanent home to which he intends to return after a period of absence. Proofs of domicile include a New Jersey voter registration, motor vehicle registration and driver’s license, and resident tax return filing.

10. TRANSFERS OF NEW CONSTRUCTION

“New construction” means any conveyance or transfer of property upon which there is an entirely new improvement not previously occupied or used for any purpose. On transfers of new construction, the words “NEW CONSTRUCTION” shall be printed clearly at the top of the first page of the deed, and an Affidavit by the grantor stating that the transfer is of property upon which there is new construction shall be appended to the deed.

11.REALTY TRANSFER FEE IS A FEE IN ADDITION TO OTHER RECORDING FEES

The county recording officer is required to collect the Realty Transfer Fee at the time the deed is offered for recording/transfer.

12.PENALTY FOR WILLFUL FALSIFICATION OF CONSIDERATION AND TRANSFERS OF NEW CONSTRUCTION

Any person who knowingly falsifies the consideration recited in a deed or in the proof or acknowledgement of the execution of a deed or in an affidavit annexed to a deed declaring the consideration therefor or a declaration in an affidavit that a transfer is exempt from recording fee is guilty of a crime of the fourth degree (P.L. 1991, c. 308, effective June 1, 1992). Grantors conveying title of new construction who fail to subscribe and append to the deed an affidavit to that effect in accordance with the provisions of subsection c. of section 2 of P.L. 1968, c. 49 (C.46:15-6) is guilty of a disorderly persons offense. The Division of Taxation is entitled to review the Fees collected pursuant to the State Uniform Procedure Law. The Director of the Division of Taxation is authorized to make deficiency assessments to taxpayers who have, intentionally or mistakenly, underestimated the consideration or sales price of properties on the Affidavit of Consideration attached to deeds and upon which the Realty Transfer Fee is based.

13.COUNTY/MUNICIPAL CODES

County/Municipal codes may be found at http://www.state.nj.us/treasury/taxation/pdf/lpt/cntycode.pdf.

14.LEGAL ENTITIES TRANSFERRING NEW JEREY REAL ESTATE TO RELATED LEGAL ENTITIES

Legal entities transferring New Jersey real estate to related legal entities are not exempt from the Realty Transfer Fee if the consideration, as defined in the law, is $100 or more. Such consideration includes the actual amount of money and/or the monetary value of any other thing of value constituting the entire compensation paid, such as the dollar value of stock included in the transaction or any enhancement to or contribution to the capital or either legal entity resulting from the transfer, or remaining balances of any prior mortgage to which the property is subject or which is assumed and agreed to be paid by the grantee and any other lien or encumbrance not paid, satisfied or removed in connection with the transfer of title.

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File Characteristics

Fact Number Fact Detail
1 The New Jersey Affidavit of Consideration for Use by Seller (Form RTF-1) is required for real estate transactions to determine the Realty Transfer Fee.
2 This form must be filed with the county recording officer along with the deed when a real estate sale is recorded in New Jersey.
3 The Realty Transfer Fee is calculated based on the amount of consideration stated in the deed or the actual amount paid, whichever is greater.
4 Exemptions may apply to certain transactions, which must be clearly claimed on the form along with appropriate documentation to justify the claim.
5 Governing laws for the RTF-1 form and the Realty Transfer Fee include the New Jersey Statutes Annotated (NJSA) 46:15-5 et seq. and the New Jersey Administrative Code (NJAC) 18:16-1.1 et seq.
6 If incorrect information is provided or if the form is not filed, penalties may be imposed, including fines or a reassessment of the transfer fee.
7 Both the seller and buyer (or their legal representatives) must ensure accuracy and compliance when completing and filing the form to facilitate a smooth transfer process.

Steps to Writing New Jersey Affidavit of Consideration RTF-1

When you're buying or selling property in New Jersey, one crucial step in the process involves properly completing the Affidavit of Consideration for Use by Seller (RTF-1 form). This form plays a vital role in the real estate transaction, as it informs the County Clerk or Register of the price of the property for recording and tax purposes. Ensuring accurate and thorough completion of this document is essential. To guide you through this process, follow the steps outlined below.

  1. Begin by gathering all necessary information about the sale, including the sale price, the date of the transaction, and detailed information about the property, such as its address and lot number.
  2. Locate the section at the top of the form labeled "Seller/Payor Information." Here, fill in the seller's name, address, and contact information. If there are multiple sellers, include details for each.
  3. In the section titled "Buyer/Payee Information," input the buyer's name, address, and contact information. As with sellers, make sure to include details for all buyers if there are more than one.
  4. Scroll to the part of the form that asks for the "Property Information." Carefully enter the municipal code, block number, lot number, qualifying statement (if applicable), and the county where the property is located.
  5. Under "Consideration for the Real Property," insert the total amount paid for the property. Ensure this figure is accurate and matches the amount stated in the sale contract.
  6. If the sale includes personal property (for example, furniture or equipment), you will need to list this separately in the space provided. Include the value assigned to each item or the total value of all personal property.
  7. Review the information regarding realty transfer fees. This section typically requires legal or professional advice to complete correctly, as it involves calculating the fees due based on the sale price and other factors.
  8. Look for any declarations or exemption claims that may apply to your transaction. If any of these conditions apply to your sale, check the appropriate box(es) and provide any required additional information.
  9. Sign and date the form in the designated area at the bottom. If there is more than one seller, ensure each one signs the document. Some counties may also require the buyer's signature, so it's essential to check the specific requirements of the county where the property is located.

After completing these steps, review the entire form to ensure all information is accurate and complete. The next step involves submitting the form, along with any required documentation and fees, to the appropriate county office. This final step is significant as it officially records the transaction and ensures compliance with New Jersey's real estate transfer laws. By carefully following these instructions and ensuring all information is correct, you can facilitate a smoother transaction process.

Important Details about New Jersey Affidavit of Consideration RTF-1

What is the New Jersey Affidavit of Consideration RTF-1 form?

The New Jersey Affidavit of Consideration RTF-1 form is a document required in real estate transactions within New Jersey. It discloses the consideration paid for a property, which is the amount of money or the value of any other compensation exchanged for the property. This affidavit is used by the county clerk or registrar of deeds to assess the Realty Transfer Fee, which is a tax imposed on the transfer of title of real property.

Who needs to file the RTF-1 form, and when should it be filed?

The RTF-1 form must be filed by the seller of the property at the time of closing the sale. It is the seller's responsibility to ensure that this form is correctly completed and submitted to the appropriate county office along with the deed for recording. Failure to submit this form may result in delays in the recording of the deed and possibly penalties.

Is there a penalty for not filing the RTF-1 form?

Yes, there can be penalties for failing to file the RTF-1 form with the deed. If the form is not submitted, or if it is incorrectly filled out, the county clerk or registrar of deeds may refuse to record the deed. This refusal can lead to complications in the transfer of the property title and may also incur additional fees or fines until the proper documentation is provided and accepted.

Can the RTF-1 form be filed electronically in New Jersey?

As of my last update, New Jersey allows certain documents related to real estate transactions to be filed electronically, depending on the county. However, filers should check with the specific county where the property is located to confirm whether the RTF-1 form can be submitted electronically. It's important to adhere to the county's current procedures to ensure prompt and correct filing.

What information is required on the RTF-1 form?

The RTF-1 form requires detailed information about the property transaction, including the full names and addresses of both the buyer and seller, the sale price of the property, the date of the sale, and a description of the property. Additionally, the form will ask for the block and lot number of the property, the type of property being transferred, and any exemptions claimed under New Jersey law. It is crucial that all this information is accurate and fully provided to avoid any issues with the real estate transfer.

Common mistakes

In New Jersey, when you're involved in a real estate transaction, you may be required to complete an Affidavit of Consideration for Use by Seller (RTF-1 form). It's a critical step that helps determine the Realty Transfer Fee owed to the state. Unfortunately, it's not uncommon for individuals to stumble over a few hurdles during this part of the process, making mistakes that could complicate the sale. Let's explore some of these common errors.

Firstly, a notable misstep occurs when people inaccurately report the sale price or consideration in the transaction. This figure includes not only the monetary payment but also any other form of compensation, such as goods or services exchanged. Misrepresenting this number, whether intentionally or by oversight, can lead to discrepancies in the computation of taxes and fees, potentially resulting in penalties or delays. It’s crucial to thoroughly vet this figure for accuracy before submission.

Another common error involves misunderstanding the exemptions. The RTF-1 form allows for certain transactions to be exempt from the Realty Transfer Fee under specific conditions. However, many individuals fail to correctly identify if their transaction qualifies for any exemptions. This misinterpretation can lead to either unnecessary payments or the accidental evasion of fees. Reviewing the exemption criteria or consulting with a professional can help clarify any confusion.

Incorrectly or incompletely filling out the form constitutes yet another frequent mistake. The RTF-1 form requires detailed information about the transaction, the property, and the parties involved. Leaving sections blank or providing vague answers can lead to processing delays. It’s important to take the time to fill out the form comprehensively and accurately.

Timing is also a key factor that's often mishandled. There's a specific timeframe within which the completed RTF-1 form must be submitted to the county clerk or registrar of deeds. Waiting too long to submit or missing the deadline altogether can incur late fees and further complicate the selling process. Sellers should make a note of these deadlines to ensure timely submission.

Last but certainly not least, failing to obtain professional advice is a mistake that can have far-reaching consequences. Real estate transactions involve complex legal and financial considerations. The significance of the RTF-1 form within this process cannot be understated. Engaging with a real estate attorney or a tax professional to review the form before submission can save a lot of future headaches. Their expertise can help identify and correct potential errors, ensuring a smoother transaction.

Overall, taking the time to accurately complete the New Jersey Affidavit of Consideration RTF-1 form is essential for a successful real estate transaction. Paying attention to detail, understanding the legal requirements, and seeking professional guidance are key steps in avoiding these common pitfalls.

Documents used along the form

When dealing with real estate transactions in New Jersey, the Affidavit of Consideration for Use by Seller (RTF-1) form is just one piece in a large puzzle of necessary documentation. This affidavit is crucial for accurately reporting the sale price of property to ensure the correct Realty Transfer Fee is applied. However, several other forms and documents are commonly needed to complete a real estate transaction thoroughly and legally. Here's a concise guide to these essential documents, underscoring the breadth of paperwork involved in such dealings.

  • Seller's Residency Certification/Exemption (GIT/REP Forms): Essential for confirming the seller's residency status, these forms determine if the seller is exempt from the withholding tax at the time of the property sale.
  • Warranty Deed: This document guarantees that the seller holds clear title to the property and has the right to sell it, providing the buyer with the highest level of protection.
  • Deed of Trust or Mortgage: Used in place of mortgages in some states, this document secures the note, providing the lender with a claim against the home if the buyer defaults on the loan.
  • Settlement Statement (HUD-1): A comprehensive breakdown of all costs involved in the transaction. It includes the fees paid by both the buyer and seller, necessary for closing the sale.
  • Title Insurance Binder: Provides temporary proof of the insurance on the title, protecting against any disputes over the property's ownership until the final title insurance policy is issued.
  • Property Tax Forms: Necessary for updating property tax records with the county assessor's office, ensuring the new owner is billed for property taxes.
  • Smoke Detector and Carbon Monoxide Detector Compliance Certificate: A document required in many states that verifies the property's compliance with safety standards regarding smoke and carbon monoxide detectors.

This assortment of documents, when used in concert with the RTF-1 form, navigates the legal intricacies of real estate transactions, safeguarding the interests of all parties involved. Each document serves a distinct purpose, from affirming the seller's right to transfer property to ensuring the buyer's protection against unforeseen claims. Professionals involved in real estate transactions should be familiar with these forms to facilitate a seamless, compliant, and efficient property transfer process.

Similar forms

The New Jersey Affidavit of Consideration for Use by Seller, RTF-1 form, shares similarities with the Real Estate Transfer Statement. This form is required in many states when transferring real estate property. It outlines the property details, sale price, and any other consideration provided in exchange for the property. Both documents are essential in the transfer process, ensuring all parties are informed about the specifics of the transaction and any financial considerations involved.

Another document akin to the RTF-1 form is the Grant Deed. A Grant Deed is used to formally transfer ownership of real property from the seller to the buyer. It guarantees that the property has not been sold to anyone else and is free of any undisclosed encumbrances or liens. Like the RTF-1 form, a Grant Deed includes necessary details about the property and the parties involved, ensuring the legality and transparency of the property transfer.

The Warranty Deed shares similarities with the RTF-1 form as well. This legal document goes a step further by providing the buyer with guarantees that the seller holds clear title to the property being sold. It also assures that the property is free of all liens and encumbrances, except those specified. Like the RTF-1, it's a key document in the property transfer process, offering peace of mind and protection to the buyer.

Similar to the RTF-1 is the Quitclaim Deed, which is used to transfer any interest in real property that the grantor might have. It is often used among family members or to clear a title but does not guarantee that the title is clear. This document, like the RTF-1 form, changes the ownership of the property but does not make any warranties about the property title.

The Seller’s Disclosure Statement, though not a deed, is similar to the RTF-1 form in its role in the real estate transaction process. This document requires the seller to disclose any known defects with the property being sold. Although its purpose is more towards informing the buyer about the condition of the property rather than the consideration, it plays a crucial role in the transparency and honesty of the transaction, principles that are also foundational to the RTF-1 form.

Comparable to the RTF-1 form is the HUD-1 Settlement Statement, now commonly replaced by the Closing Disclosure for most residential property transactions. This form itemizes all charges and credits to the buyer and the seller in a real estate transaction. It provides a detailed account of the financial transaction precipitated by the property transfer, embodying the same spirit of full disclosure found in the RTF-1 form.

The Declaration of Value form, found in some jurisdictions, is also similar to the RTF-1 form. It requires information on the sale price, property description, and parties involved in the property transfer, just like the RTF-1 form. This document is often used for tax assessment purposes upon the transfer of the property to ensure the proper taxes are levied based on the property's value at the time of sale.

Dos and Don'ts

Filling out the New Jersey Affidavit of Consideration RTF-1 form requires attention to detail and an understanding of the process. To ensure that individuals correctly complete the form and adhere to the regulations, the following list outlines the recommended practices and common pitfalls to avoid.

Do:

  • Ensure all information is accurate and legible. The clarity of your information is crucial for processing the document without delays.
  • Review the form's instructions carefully before beginning. Understanding each requirement can prevent errors and ensure that all necessary sections are completed accurately.
  • Use black ink or type the information electronically, if possible. This helps in making the document clear and easily readable.
  • Include all required attachments and supporting documents. These may include contracts, agreements, or other pertinent paperwork that supports the affidavit.
  • Sign and date the form in the designated areas. An unsigned form may be considered incomplete and could lead to rejection or delay.
  • Retain a copy of the completed form and any attachments for your records. Having a record can be valuable for future reference or in case of disputes.
  • Submit the form within the required timeframe. Adhering to deadlines is essential for compliance with state regulations.

Don't:

  • Leave any required fields blank. Incomplete forms can result in delays or refusal of processing.
  • Use pencil or any ink color other than black. This can make the document difficult to read or photocopy.
  • Guess or approximate figures and details. Accuracy is key to the legal validity of the affidavit.
  • Overlook the need for notarization, if applicable. Some sections may require a notary public's stamp to verify the signer's identity.
  • Ignore the local county filing requirements. Each county may have specific instructions or requirements for submitting the form.
  • Forget to check for any recent updates or changes to the form. Regulatory changes can occur, and using the most current form is necessary.
  • Submit the form without reviewing for errors. A final check can catch mistakes that could potentially complicate or delay the process.

Misconceptions

Understanding the New Jersey Affidavit of Consideration for the RTF-1 form is crucial for real estate transactions within the state. However, misconceptions about its purpose, requirements, and implementation are not uncommon. Below are six common misunderstandings about this document:

  • Only buyers need to complete the RTF-1 form. This is a misunderstanding. Both buyers and sellers are involved in the process, as the form outlines transaction details that affect both parties. It ensures the correct amount of realty transfer fee is collected based on the sale's consideration.
  • It's only necessary for high-value property transactions. Regardless of the value, the RTF-1 form is required for nearly all real estate sales or transfers in New Jersey. The form assists in calculating and documenting the realty transfer fee, which applies to most property transactions with very few exceptions.
  • The form is the same regardless of the property type. The applicability and specific requirements can vary depending on the type of property being transferred. For instance, residential properties, commercial properties, and vacant land may have different considerations or exemptions that need to be accurately reflected in the form.
  • It's only for documenting sales price. While the sale price is an essential part of the document, the RTF-1 form also includes other critical information, such as the property's classification, any conditions of sale, and exemptions claimed. This broader scope of information helps ensure the correct calculation of the transfer fee.
  • Filing it is time-consuming and complicated. While the form requires detailed information, thorough instructions are available, and with proper documentation regarding the property and sale, completing the form can be straightforward. Assistance from real estate professionals and attorneys can also streamline the process.
  • Incorrect information leads to minor repercussions. Inaccuracies on the RTF-1 form may result in significant penalties, including fines and delays in processing the real estate transaction. It's critical to ensure all information is accurate and complete to avoid potential issues.

Dispelling these misconceptions about the New Jersey Affidavit of Consideration RTF-1 form is vital for a smooth and compliant real estate transaction. Proper understanding and attention to detail can facilitate a more efficient process for all parties involved.

Key takeaways

The New Jersey Affidavit of Consideration for Use by Seller (RTF-1 form) is a document required during the process of real estate transactions. Its proper completion and submission are integral to ensuring compliance with state laws regarding the recording of property transfers. Here are key takeaways to consider when dealing with this form:

  • Identification of Parties: Clearly identify the seller and buyer involved in the property transaction. Accurate details such as names and addresses are crucial for the form’s validity.
  • Details of the Property: The form requires comprehensive information about the property being transferred. This includes the property's location, block, lot number, and the municipality in which it is situated.
  • Consideration Amount: You must declare the total amount of consideration (value) exchanged for the property. This includes the sale price along with any other form of compensation. If the sale price reflects the true value of the property, this should be explicitly stated.
  • Declaration of Relationship: In cases where the buyer and seller have a relationship that could influence the sale price (e.g., family, business partners), this information must be disclosed. It's important to note how the relationship might affect the transaction's terms.
  • Exemptions Claimed: The RTF-1 form allows sellers to claim certain exemptions from the Realty Transfer Fee (RTF). If eligible for any exemptions, they should be accurately noted in the specified section of the form.
  • Signature and Notarization: Completion of the form requires the seller’s signature, which must be notarized. This step is essential for the document to be legally binding and recognized during the transfer process.

Ensuring that the New Jersey Affidavit of Consideration RTF-1 form is filled out correctly and completely is vital for the smooth execution of real estate transactions within the state. Sellers are advised to review all sections carefully and seek guidance if any part of the form is unclear.

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