In New Jersey, the 'mansion tax' applies to which category of real estate transactions?
Correct Answer
D) Residential properties sold for $1,000,000 or more, paid by the buyer
New Jersey's mansion tax is an additional 1% transfer fee imposed on the buyer for the purchase of residential Class 2 property (and certain other classes) with a consideration of $1,000,000 or more. Unlike the standard RTF which is the seller's obligation, the mansion tax is specifically the buyer's responsibility. This distinction is a classic NJ exam trap.
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Related Topics & Key Terms
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Related Concepts
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
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