Jennifer and Robert are divorcing. As part of their divorce settlement, Robert transfers his ownership interest in their Montclair home to Jennifer. The home has a fair market value of $550,000 and Robert receives no payment from Jennifer. Which statement correctly describes the RTF implications of this transfer?
Correct Answer
C) The transfer is exempt from the RTF because it is made pursuant to a divorce proceeding
Under N.J.S.A. 46:15-10, transfers of real property between divorcing spouses pursuant to a divorce decree or settlement are specifically exempt from the New Jersey Realty Transfer Fee. This exemption recognizes that such transfers are court-supervised reallocations of marital assets rather than commercial sales. Because Robert transfers the property as part of the divorce settlement, no RTF is owed by either party.
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Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
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.
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