In New Jersey, all of the following statements about the Realty Transfer Fee (RTF) are true EXCEPT:
Correct Answer
C) The RTF is always paid by the buyer as the party acquiring the property
Option C is the false statement. The RTF is NOT paid by the buyer — it is the seller's (grantor's) obligation under N.J.S.A. 46:15-5. The RTF is imposed on the grantor at the time of deed recording. The buyer may owe the separate mansion tax on properties at $1,000,000 or more, but the standard RTF is always the seller's responsibility. Stating that the buyer always pays the RTF is factually incorrect.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
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