Under the New Jersey Realty Transfer Fee Act, which of the following transactions is NOT exempt from the realty transfer fee?
Correct Answer
A) A transfer of property from a parent to an adult child for $400,000 in consideration
A transfer from a parent to an adult child for $400,000 in actual consideration is NOT exempt from the RTF. The RTF exemptions under N.J.S.A. 46:15-10 apply to transfers for nominal or no consideration, transfers pursuant to divorce decrees, transfers to governmental bodies, and transfers between spouses, among others. When actual, substantial consideration ($400,000) is paid — even between family members — the transaction is a standard taxable sale and the RTF applies in full. Family relationship alone does not create an exemption.
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