Maria and her husband are transferring their home to their adult daughter as a gift. The property is valued at $450,000, but no money changes hands. Under the New Jersey Realty Transfer Fee Act, how will the RTF most likely be treated in this transaction?
Correct Answer
C) The transaction is exempt from the RTF because it is a transfer for nominal or no consideration
Under N.J.S.A. 46:15-10, certain transfers are exempt from the New Jersey Realty Transfer Fee. Transfers for nominal consideration (or no consideration), such as gifts, qualify for an exemption. Because no money changes hands in this transaction, it falls within the exemption for transfers for nominal or no consideration, and no RTF is owed.
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Related Topics & Key Terms
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The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
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