David, a New Jersey resident, sells his investment property in Newark for $650,000 to a buyer named Sarah. At closing, which of the following statements correctly describes the transfer tax obligations?
Correct Answer
A) David pays the standard RTF, and Sarah pays no additional transfer-related fees
David (the seller/grantor) is responsible for paying the standard New Jersey Realty Transfer Fee under N.J.S.A. 46:15-5. Since the sale price of $650,000 is below the $1,000,000 mansion tax threshold, Sarah (the buyer) owes no mansion tax. Therefore, only the standard RTF applies, and it is David's obligation alone.
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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.
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