A couple married in New Jersey purchases a home together as their primary residence. Several years later, they divorce and the ex-wife conveys her interest in the property to her ex-husband by deed. Under New Jersey's Realty Transfer Fee Act, which of the following correctly describes the RTF obligation for this transfer?
Correct Answer
B) The transfer is exempt from the RTF because it is a transfer between divorcing spouses pursuant to a divorce decree
Under the New Jersey Realty Transfer Fee Act (N.J.S.A. 46:15-5 et seq.), certain transfers are exempt from the RTF, including transfers between spouses or former spouses pursuant to a divorce decree or property settlement agreement. This exemption recognizes that such transfers are not arm's-length sales but rather court-ordered or settlement-driven property divisions.
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RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
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