Question 58

New Jersey's real estate transfer tax is payable by the buyer at closing, although no law prohibits contribution by the seller.

In New Jersey, the real estate transfer tax is typically the responsibility of the buyer at the time of closing. However, the regulations do allow for the seller to contribute to this cost if both parties agree.

A) waived for new construction

This statement is incorrect as there is no provision in New Jersey law that waives the real estate transfer tax specifically for new construction. All real estate transactions, including those involving new properties, are subject to the transfer tax unless explicitly exempted by other criteria.

B) payable by the buyer at closing, although no law prohibits contribution by the seller

This statement is accurate. The law states that the buyer is responsible for paying the transfer tax at closing, but it also allows for the seller to contribute to this cost if agreed upon, making this the correct answer.

C) payable at a reduced rate for grantors who are sixty-two or over

This option is incorrect because there is no provision in New Jersey's transfer tax laws that offers a reduced rate specifically for grantors aged sixty-two or over. The transfer tax rates apply uniformly regardless of the age of the grantor.

D) payable within thirty days of receipt of the recorded deed

This statement is misleading. While it is true that transfer taxes must be paid at the time of closing, the timeline for payment does not extend to thirty days after receiving the recorded deed. Instead, payment is generally expected at closing, aligning with the buyer's responsibility.

Conclusion

The correct answer, B, clearly outlines the responsibility for New Jersey's real estate transfer tax, establishing that it is payable by the buyer at closing with the potential for seller contribution. The other options either misstate the tax's applicability or misrepresent the payment timeline, reinforcing why B is the only accurate choice.