Content Overview
Guide to Writing New Jersey Affidavit of Consideration RTF-1
After gathering the necessary information, you are ready to fill out the New Jersey Affidavit of Consideration RTF-1 form. This form is essential for documenting the consideration involved in a property transaction. Completing it accurately is crucial for ensuring compliance with state regulations.
- Begin by downloading the RTF-1 form from the New Jersey Division of Taxation website or obtain a physical copy from your local government office.
- At the top of the form, fill in the name of the seller(s) and the buyer(s). Ensure that all names are spelled correctly and match the official identification documents.
- Provide the address of the property being transferred. Include the street address, city, and zip code.
- In the section for consideration, indicate the total amount paid for the property. This should reflect the actual sale price or value agreed upon by both parties.
- Fill out the date of the transaction. This should be the date when the sale was finalized.
- If applicable, check any boxes that pertain to the type of transaction. This may include options like a gift or inheritance.
- Sign the form in the designated area. The seller must sign, and if there are multiple sellers, all must provide their signatures.
- Have the form notarized if required. Some transactions may necessitate a notary's acknowledgment.
- Submit the completed form to the appropriate county clerk’s office along with any required fees.
Document Breakdown
| Fact Name | Description |
|---|---|
| Purpose | The New Jersey Affidavit of Consideration RTF-1 form is used to disclose the consideration paid for real estate transactions. |
| Governing Law | This form is governed by the New Jersey Statutes Annotated (N.J.S.A.) 46:15-5. |
| Filing Requirement | It must be filed with the county clerk's office at the time of recording the deed. |
| Signatories | The form must be signed by the seller or their representative to certify the accuracy of the information provided. |
| Information Required | It requires details such as the names of the parties involved, the property description, and the amount of consideration. |
| Impact on Taxes | The information on this form is used to determine the realty transfer fee owed to the state. |
| Form Availability | The RTF-1 form is available online through the New Jersey Division of Taxation website and local county clerk offices. |
| Penalties for Non-compliance | Failure to submit the RTF-1 form may result in fines and delays in the recording process. |
| Amendments | If changes occur after the form has been submitted, an amended affidavit may be required to correct the information. |
| Related Forms | Other forms related to real estate transactions in New Jersey include the RTF-2 and RTF-3 forms, which address different aspects of property transfers. |
FAQ
What is the New Jersey Affidavit of Consideration RTF-1 form?
The New Jersey Affidavit of Consideration RTF-1 form is a document used during real estate transactions. It serves to disclose the consideration, or the amount paid, for a property transfer. This form is important for tax purposes and ensures that the state has accurate records of property transactions.
Who needs to complete the RTF-1 form?
The RTF-1 form must be completed by the seller or the buyer of the property involved in the transaction. It is typically required whenever there is a transfer of real estate in New Jersey. Both parties should ensure the form is filled out correctly to avoid any issues with the transaction.
When is the RTF-1 form required?
The RTF-1 form is required at the time of closing a real estate transaction. It should be submitted along with other closing documents to the county clerk's office. If the form is not submitted, it may delay the recording of the deed.
What information is included in the RTF-1 form?
The RTF-1 form includes several key pieces of information, such as:
- The names of the buyer and seller
- The property address
- The total consideration paid for the property
- Any exemptions or deductions that may apply
Completing this form accurately is crucial, as it impacts property taxes and public records.
How do I complete the RTF-1 form?
To complete the RTF-1 form, follow these steps:
- Obtain a copy of the form from the New Jersey Division of Taxation or your real estate agent.
- Fill in the required information, ensuring accuracy in all details.
- Both the buyer and seller should sign the form.
- Submit the completed form at the closing of the transaction.
Taking care to fill out the form correctly can prevent delays in the property transfer process.
What happens if I do not submit the RTF-1 form?
If the RTF-1 form is not submitted, the county clerk may refuse to record the deed. This could result in delays in transferring ownership and may also lead to penalties or fines. It is essential to ensure that all necessary forms are completed and submitted on time.
Are there any exemptions from filing the RTF-1 form?
Yes, certain transactions may be exempt from filing the RTF-1 form. For instance, transfers between spouses or certain government entities may not require this affidavit. However, it is advisable to consult with a real estate professional or attorney to confirm whether an exemption applies to your situation.
Can I file the RTF-1 form electronically?
As of now, New Jersey does not allow for electronic filing of the RTF-1 form. It must be completed in paper form and submitted in person at the county clerk's office during the closing process. Always check for any updates or changes to this policy.
Where can I find the RTF-1 form?
The RTF-1 form can be obtained from various sources:
- The New Jersey Division of Taxation website
- Your real estate agent
- Local county clerk's office
Having the correct version of the form is important, so make sure to access it from a reliable source.
Is there a fee associated with filing the RTF-1 form?
There is no fee specifically for filing the RTF-1 form itself. However, there may be recording fees associated with the deed transfer at the county clerk's office. These fees vary by county, so it is wise to check with the local office for specific amounts.
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New Jersey Affidavit of Consideration RTF-1 Example
MUST SUBMIT IN DUPLICATE
STATE OF NEW JERSEY
AFFIDAVIT OF CONSIDERATION FOR USE BY SELLER (P.L.1968, c. 49, as amended through P.L. 2006, c. 33) (N.J.S.A.
BEFORE COMPLETING THIS AFFIDAVIT, PLEASE READ THE INSTRUCTIONS ON THE REVERSE SIDE OF THIS FORM.
STATE OF NEW JERSEY |
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}ss. County Municipal Code |
FOR RECORDER’S USE ONLY |
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Consideration |
$ _____________________ |
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RTF paid by seller |
$ ___________________ |
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COUNTY |
_________________ ________________ |
Date___________ By _____________________ |
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MUNICIPALITY OF PROPERTY LOCATION _________________________ |
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*Use symbol “C” to indicate that fee is exclusively for county use. |
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(1)PARTY OR LEGAL REPRESENTATIVE (See Instructions #3 and #4 on reverse side)
Deponent, ______________________________, being duly sworn according to law upon his/her oath,
(Name)
deposes and says that he/she is the____________________________ in a deed dated ________________________ transferring
(Grantor, Legal Representative, Corporate Officer, Officer of Title Company, Lending Institution, etc.)
real property identified as Block number ___________________________ Lot number __________________________located at
_______________________________________________________________________________ |
and |
annexed |
thereto. |
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(Street Address, Town) |
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(2) |
CONSIDERATION $__________________(Instructions #1 and #5 on reverse side) no prior mortgage to which property is subject. |
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_________________________________________________________________________________________________________ |
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(3) |
Property transferred is Class 4A 4B 4C (circle one). If property transferred is Class 4A, calculation in Section 3A below is required. |
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(3A)REQUIRED CALCULATION OF EQUALIZED VALUATION FOR ALL CLASS 4A (COMMERCIAL) PROPERTY TRANSACTIONS: (See Instructions #5A and #7 on reverse side)
Total Assessed Valuation ÷ Director’s Ratio = Equalized Assessed Valuation $_____________________ ÷ ____________% = $_________________________
If Director’s Ratio is less than 100%, the equalized valuation will be an amount greater than the assessed value. If Director’s Ratio is equal to or in excess of 100%, the assessed value will be equal to the equalized valuation.
(4)FULL EXEMPTION FROM FEE (See Instruction #8 on reverse side)
Deponent states that this deed transaction is fully exempt from the Realty Transfer Fee imposed by P.L. 1968, c. 49 as amended through P.L. 2004, c. 66 for the following reason(s). Mere reference to exemption symbol is insufficient. Explain in detail.
______________________________________________________________________________________________________________
(5)PARTIAL EXEMPTION FROM FEE ( Instruction #9 on reverse side)
NOTE: All boxes below apply to grantor(s) only. ALL BOXES IN APPROPRIATE CATEGORY MUST BE CHECKED. Failure to do so will
void claim for partial exemption. Deponent claims that this deed transaction is exempt from State portions of the Basic, Supplemental, and General Purpose Fees, as applicable, imposed by P.L. 1975, c. 176, P.L. 2004, c. 113 and P.L. 2004, c. 66 for the following reason(s):
______________________________________________________________________________________________________________________
A.SENIOR CITIZEN Grantor(s) 
62 years of age or over. * ( Instruction #9 on reverse side for A or B)
B.BLIND PERSON Grantor(s) 
legally blind or; *
DISABLED PERSON Grantor(s) 
permanently and totally disabled 
receiving disability payments 
not gainfully employed*
Senior citizens, blind persons, or disabled persons must also meet all of the following criteria:
Owned and occupied by grantor(s) at time of sale. |
Resident of State of New Jersey. |
One or |
Owners as joint tenants must all qualify. |
*IN CASE OF HUSBAND AND WIFE, PARTNERS IN A CIVIL UNION COUPLE, ONLY ONE GRANTOR NEED QUALIFY IF TENANTS BY THE ENTIRETY.
________________________________________________________________________________________________________________________________________________
C.LOW AND MODERATE INCOME HOUSING (Instruction #9 on reverse side)
Affordable according to H.U.D. standards. |
Reserved for occupancy. |
Meets income requirements of region. |
Subject to resale controls. |
(6)NEW CONSTRUCTION (Instructions #2, #10 and #12 on reverse side)
Entirely new improvement. |
Not previously occupied. |
Not previously used for any purpose. |
“NEW CONSTRUCTION” printed clearly at top of first page of the deed. |
________________________________________________________________________________________________________________________________________________
(7)RELATED LEGAL ENTITIES TO LEGAL ENTITIES (Instructions #5, #12, #14 on reverse side)
No prior mortgage assumed or to which property is subject at time of sale.
No contributions to capital by either grantor or grantee legal entity.
No stock or money exchanged by or between grantor or grantee legal entities.
________________________________________________________________________________________________________________________________________________
(8)Deponent makes this Affidavit to induce county clerk or register of deeds to record the deed and accept the fee submitted herewith in accordance with the provisions of P.L. 1968, c. 49 as amended through P.L. 2006, c. 33.
Subscribed and sworn to before me |
____________________________ |
______________________________ |
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this |
day of |
, 20 |
Signature of Deponent |
Grantor Name |
_____________________________________ |
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________________________________________ |
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Deponent Address |
Grantor Address at Time of Sale |
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_______ |
______________________________ |
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Last three |
digits in Grantor’s Social Security Number |
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Name/Company of Settlement Officer |
FOR OFFICIAL USE ONLY |
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Instrument Number___________________ County_________________ |
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Deed Number_________________ Book __________ Page_________ |
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Deed Dated ___________________ Date Recorded ________________ |
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County recording officers shall forward one copy of each |
STATE OF NEW JERSEY |
PO BOX 251
TRENTON, NJ
ATTENTION: REALTY TRANSFER FEE UNIT
The Director of the Division of Taxation in the Department of the Treasury has prescribed this form as required by law, and may not be altered or amended without prior approval of the Director. For information on the Realty Transfer Fee or to print a copy of this Affidavit, visit the Division of Taxation website at: www.state.nj.us/treasury/taxation/lpt/localtax.htm
INSTRUCTIONS FOR FILING FORM
1.STATEMENT OF CONSIDERATION AND REALTY TRANSFER FEE PAYMENT ARE PREREQUISITES FOR DEED RECORDING
No county recording officer shall record any deed evidencing transfer of title to real property unless (a) the consideration is recited in the deed, or (b) an Affidavit by one or more of the parties named in the deed or by their legal representatives declaring the consideration is annexed for recording with the deed, and (c) for conveyances and transfers of property for which the total consideration recited in the deed is not in excess of $350,000, a fee is remitted at the rate of $2.00/$500 of consideration or fractional part thereof not in excess of $150,000; $3.35/$500 of consideration or fractional part thereof in excess of $150,000 but not in excess of $200,000; and $3.90/$500 of consideration or fractional part thereof in excess of $200,000. For transfers of property for which the total consideration recited in the deed is in excess of $350,000, a fee is remitted at the rate of $2.90/$500 of consideration or fractional part not in excess of $150,000; $4.25/$500 of consideration or fractional part thereof in excess of $150,000 but not in excess of $200,000; $4.80/$500 of consideration or fractional part thereof in excess of $200,000; $5.30/$500 of consideration or fractional part thereof in excess of $550,000 but not in excess of $850,000; $5.80/$500 of consideration or fractional part thereof in excess of $850,00 but not in $1,000,000; and $6.05/$500 of consideration or fractional part thereof in excess of $1,000,000, which fee shall be paid in addition to the recording fees imposed by, P.L. 1965 c. 123, Section 2 (C.
2.WHEN AFFIDAVIT MUST BE ANNEXED TO DEED
This Affidavit must be annexed to and recorded with all deeds when entire consideration is not recited in deed or the acknowledgement or proof of the execution, when the grantor claims a total or partial exemption from the fee, Class 4 property that includes commercial, industrial, or apartment property, and for transfers of “new construction.” (See Instructions #10 and #12 below.)
3.LEGAL REPRESENTATIVE
“Legal representative” is to be interpreted broadly to include any person actively and responsibly participating in the transaction, such as, but not limited to: an attorney representing one of the parties; a closing officer of a title company or lending institution participating in the transaction; a holder of power of attorney from grantor or grantee.
4.OFFICER OF CORPORATE GRANTOR/OFFICER OF TITLE COMPANY OR LENDING INSTITUTION
Where a deponent is an officer of corporate grantor, state the name of corporation and officer’s title or where a deponent is a closing officer of a title company or lending institution participating in the transaction, state the name of the company or institution and officer’s title.
5.CONSIDERATION
“Consideration” means in the case of any deed, the actual amount of money and the monetary value of any other thing of value constituting the entire compensation paid or to be paid for the transfer of title to the lands, tenements or other realty, including the remaining amount of any prior mortgage to which the transfer is subject or which is assumed and agreed to be paid by the grantee and any other lien or encumbrance not paid, satisfied or removed in connection with the transfer of title. (P.L. 1968, c. 49, Section 1, as amended.)
5A. CLASS 4A “COMMERCIAL PROPERTIES” DEFINED
Class 4A “Commercial properties” as defined in N.J.A.C.
6.DIRECTOR'S RATIO
“Director’s Ratio” means the average ratio of assessed to true value of real property for each taxing district as determined by the Director, Division of Taxation, in the Table of Equalized Valuations promulgated annually on or before October 1 in each year pursuant to N.J.S.A.
7.EQUALIZED VALUE
“Equalized Value” means the assessed value of the property in the year that the transfer is made, divided by the Director’s Ratio. The Table of Equalized Valuations is promulgated annually on or before October 1 in each year pursuant to N.J.S.A.
(Example: Assessed Value = $1,000,000; Director’s Ratio = 80%. $1,000,000 ÷ .80 = $1,250,000)
8.FULL EXEMPTION FROM THE REALTY TRANSFER FEE (GRANTOR/GRANTEE)
The fee imposed by this Act shall not apply to a deed:
(a)For consideration of less than $100; (b) By or to the United States of America, this State, or any instrumentality, agency or subdivision; (c) Solely in order to provide or release security for a debt or obligation; (d) Which confirms or corrects a deed previously recorded; (e) On a sale for delinquent taxes or assessments; (f) On partition; (g) By a receiver, trustee in bankruptcy or liquidation, or assignee for the benefit of creditors; (h) Eligible to be recorded as an “ancient deed” pursuant to N.J.S.A.
9.PARTIAL EXEMPTION FROM THE REALTY TRANSFER FEE (P.L. 1975, c. 176; P.L. 2003, c. 113; P.L. 2004, c. 66)
The following transfers of title to real property shall be exempt from State portions of the Basic Fee, Supplemental Fee, and General Purpose Fee, as applicable: 1. The sale of any one or
For the purposes of this Act, the following definitions shall apply:
“Blind person” means a person whose vision in his better eye with proper correction does not exceed 20/200 as measured by the Snellen chart or a person who has a field defect in his better eye with proper correction in which the peripheral field has contracted to such an extent that the widest diameter of visual field subtends an angular distance no greater than 20º.
“Disabled person” means any resident of this State who is permanently and totally disabled, unable to engage in gainful employment, and receiving disability benefits or any other compensation under any federal or State law.
“Senior citizen” means any resident of this State of the age of 62 or over.
“Low and Moderate Income Housing” means any residential premises, or part thereof, affordable according to Federal Department of Housing and Urban Development or other recognized standards for home ownership and rental costs occupied or reserved for occupancy by households with a gross income equal to 80% or less of the median gross household income for households of the same size within the housing region in which the housing is located, but shall include only those residential premises subject to resale controls pursuant to contractual guarantees.
“Resident of the State of New Jersey” means any claimant who is legally domiciled in this State when the transfer of the subject property is made. Domicile is what the claimant regards as the permanent home to which he intends to return after a period of absence. Proofs of domicile include a New Jersey voter registration, motor vehicle registration and driver’s license, and resident tax return filing.
10. TRANSFERS OF NEW CONSTRUCTION
“New construction” means any conveyance or transfer of property upon which there is an entirely new improvement not previously occupied or used for any purpose. On transfers of new construction, the words “NEW CONSTRUCTION” shall be printed clearly at the top of the first page of the deed, and an Affidavit by the grantor stating that the transfer is of property upon which there is new construction shall be appended to the deed.
11.REALTY TRANSFER FEE IS A FEE IN ADDITION TO OTHER RECORDING FEES
The county recording officer is required to collect the Realty Transfer Fee at the time the deed is offered for recording/transfer.
12.PENALTY FOR WILLFUL FALSIFICATION OF CONSIDERATION AND TRANSFERS OF NEW CONSTRUCTION
Any person who knowingly falsifies the consideration recited in a deed or in the proof or acknowledgement of the execution of a deed or in an affidavit annexed to a deed declaring the consideration therefor or a declaration in an affidavit that a transfer is exempt from recording fee is guilty of a crime of the fourth degree (P.L. 1991, c. 308, effective June 1, 1992). Grantors conveying title of new construction who fail to subscribe and append to the deed an affidavit to that effect in accordance with the provisions of subsection c. of section 2 of P.L. 1968, c. 49
13.COUNTY/MUNICIPAL CODES
County/Municipal codes may be found at http://www.state.nj.us/treasury/taxation/pdf/lpt/cntycode.pdf.
14.LEGAL ENTITIES TRANSFERRING NEW JEREY REAL ESTATE TO RELATED LEGAL ENTITIES
Legal entities transferring New Jersey real estate to related legal entities are not exempt from the Realty Transfer Fee if the consideration, as defined in the law, is $100 or more. Such consideration includes the actual amount of money and/or the monetary value of any other thing of value constituting the entire compensation paid, such as the dollar value of stock included in the transaction or any enhancement to or contribution to the capital or either legal entity resulting from the transfer, or remaining balances of any prior mortgage to which the property is subject or which is assumed and agreed to be paid by the grantee and any other lien or encumbrance not paid, satisfied or removed in connection with the transfer of title.