The New Jersey Affidavit of Consideration RTF-1 form serves as a legal document that outlines the consideration or value exchanged in a real estate transaction. This affidavit is essential for ensuring transparency and compliance with state regulations. By providing detailed information about the transaction, it helps facilitate the accurate recording of property transfers in New Jersey.
The New Jersey Affidavit of Consideration RTF-1 form plays a crucial role in real estate transactions within the state. It serves as a declaration of the consideration, or payment, involved in the transfer of property. This form is typically required when a property is sold or transferred, ensuring that the state receives the appropriate transfer tax based on the sale price. By accurately detailing the consideration amount, the RTF-1 helps prevent disputes and misunderstandings between buyers, sellers, and the state. Additionally, the form must be signed by both parties involved in the transaction, adding a layer of accountability. Proper completion of the RTF-1 is essential for a smooth closing process, as it must be submitted alongside the deed to the county clerk. Understanding this form is vital for anyone involved in real estate in New Jersey, whether you are a first-time homebuyer or a seasoned investor.
What is the New Jersey Affidavit of Consideration RTF-1 form?
The New Jersey Affidavit of Consideration RTF-1 form is a legal document used in real estate transactions. It provides information about the consideration exchanged during the sale of property. This form is typically required by the county clerk’s office when recording a deed. It helps ensure that the correct transfer tax is applied based on the sale price.
Who needs to complete the RTF-1 form?
The seller and the buyer, or their representatives, must complete the RTF-1 form when a property is sold in New Jersey. Both parties should provide accurate information about the sale price and any other relevant details. This helps facilitate a smooth transaction and ensures compliance with state regulations.
Where can I obtain the RTF-1 form?
The RTF-1 form can be obtained from the New Jersey Division of Taxation's website or from your local county clerk’s office. Many real estate professionals also have access to this form and can assist you in completing it. Ensure that you are using the most current version of the form to avoid any issues.
What information is required on the RTF-1 form?
The RTF-1 form requires details such as the names and addresses of the buyer and seller, the property's address, and the sale price. Additionally, it may ask for information about any liens or encumbrances on the property. Providing complete and accurate information is essential for processing the form correctly.
Is there a fee associated with filing the RTF-1 form?
There is no fee specifically for filing the RTF-1 form itself. However, there may be transfer taxes or recording fees associated with the property sale. These fees vary by county and are typically based on the sale price of the property. It is advisable to check with your local county clerk’s office for specific details.
What happens if the RTF-1 form is not filed?
If the RTF-1 form is not filed, it may lead to complications in the property transaction. The county clerk may refuse to record the deed without this form, which can delay the transfer of ownership. Additionally, failure to file could result in penalties or additional taxes being assessed later. It is important to ensure that the form is completed and submitted as required.
The New Jersey Affidavit of Consideration RTF-1 form is an important document used in real estate transactions. Understanding how to fill it out and use it effectively can help ensure a smooth process. Here are five key takeaways regarding this form:
Understanding the New Jersey Affidavit of Consideration RTF-1 form is essential for anyone involved in real estate transactions in the state. Unfortunately, several misconceptions can lead to confusion and potential issues. Here’s a list of ten common misconceptions about this form, along with clarifications.
By addressing these misconceptions, individuals can navigate the complexities of real estate transactions in New Jersey more effectively. Understanding the requirements and processes surrounding the RTF-1 form can save time, money, and potential legal headaches.
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.
}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:
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.
Social Security Medicare - Complete the CMS-1763 Exp to notify the government of your decision to cancel Medicare.
Texas Temporary Tag - Filling out the Texas Temporary Tag form is a proactive step toward fulfilling vehicle ownership responsibilities in Texas.
By understanding the essentials of the Michigan Promissory Note, you can better navigate your financial agreements. This document not only solidifies the terms of repayment but also protects the interests of both the lender and the borrower. To learn more about creating this important financial instrument, visit the following link: Promissory Note.
Wh-60 - Employees must read the notice carefully to understand their rights after accepting payment.
Incomplete Information: One common mistake is failing to provide all required information. Each section of the form must be filled out completely. Missing details can lead to delays or rejections.
Incorrect Property Description: When describing the property, errors in the address or legal description can occur. It is crucial to ensure that the information matches public records accurately.
Not Signing the Form: Some individuals forget to sign the affidavit. A signature is essential for the document to be valid. Without it, the form may be considered incomplete.
Failure to Use the Correct Form: Using an outdated version of the RTF-1 form can lead to complications. Always verify that the most current version is being utilized.
Incorrect Calculation of Consideration: Miscalculating the consideration amount is another frequent error. This figure should reflect the true value exchanged for the property, including any additional costs.
Neglecting to Review the Form: Skipping a final review before submission can result in overlooked mistakes. Taking the time to double-check all entries is advisable to ensure accuracy.
When filling out the New Jersey Affidavit of Consideration RTF-1 form, there are several important dos and don'ts to keep in mind. Following these guidelines will help ensure that your form is completed accurately and efficiently.
By following these simple guidelines, you can navigate the process of completing the RTF-1 form with confidence.
The New Jersey Affidavit of Consideration RTF-1 form is similar to the New Jersey Deed form. Both documents are essential in real estate transactions. The Deed serves as the official record of property transfer, while the Affidavit of Consideration provides details about the financial aspects of the transaction. This affidavit confirms the amount paid for the property, ensuring transparency in the sale process.
Another document comparable to the RTF-1 is the New Jersey Property Transfer Tax Return (Form PT-1). This form is required for reporting the sale of real property and calculating the applicable transfer tax. Like the Affidavit of Consideration, the PT-1 form captures the financial details of the transaction, including the sale price and any exemptions that may apply.
The New Jersey Seller’s Disclosure Statement also bears similarities to the RTF-1 form. This document requires sellers to disclose known issues or defects in the property. While the Affidavit of Consideration focuses on the financial transaction, the Seller’s Disclosure Statement emphasizes the condition of the property, providing crucial information to the buyer.
To successfully establish your business in California, it is essential to understand the importance of completing the necessary documentation. For guidance, visit our resource on "critical steps in filing Articles of Incorporation for your new corporation" at https://californiapdffoms.com/fillable-articles-of-incorporation/.
The New Jersey Buyer's Guide is another related document. It provides potential buyers with important information about the home-buying process. While the Affidavit of Consideration deals with the specifics of the sale price, the Buyer’s Guide offers broader guidance on what to expect during the transaction, including financing options and inspection tips.
Additionally, the New Jersey Mortgage Application is similar in that it involves financial information regarding the purchase of real estate. This application is submitted by buyers seeking financing for their property. While the Affidavit of Consideration confirms the sale price, the Mortgage Application details the buyer's financial situation to secure a loan.
The New Jersey Title Search Report also shares commonalities with the RTF-1 form. A title search is conducted to ensure there are no liens or claims against the property being sold. This document complements the Affidavit of Consideration by providing assurance that the property is free of legal issues, thus protecting the financial investment being made.
The New Jersey Closing Statement is another document that aligns with the Affidavit of Consideration. This statement summarizes all financial transactions that occur at closing, including the sale price, fees, and any credits or debits. It provides a comprehensive overview of the financial aspects of the transaction, similar to the information contained in the Affidavit of Consideration.
The New Jersey Lease Agreement can also be considered similar in terms of detailing financial obligations. While it pertains to rental agreements rather than property sales, it outlines the terms and conditions of the lease, including rental amounts and payment schedules. Both documents emphasize the importance of clear financial terms in real estate agreements.
Lastly, the New Jersey Home Inspection Report is relevant when discussing property transactions. Although it focuses on the physical condition of a home, it plays a crucial role in the decision-making process for buyers. The findings in the Home Inspection Report can influence the final sale price, making it indirectly related to the Affidavit of Consideration.