Question 87

The fee which MUST be paid when fee simple title to a parcel of real estate passes for a consideration from one party to another is the recording fee.

In New Jersey, the recording fee is the fee that must be paid when fee simple title to a parcel of real estate is transferred from one party to another. This fee is necessary to officially document the change of ownership in the public records.

A) the fee which MUST be paid when fee simple title to a parcel of real estate passes for a consideration from one party to another is the:

This option is incomplete and does not provide a specific fee name, making it incorrect. It fails to identify the actual fee required for the transfer of title.

B) recording fee

The recording fee is accurate as it pertains to the mandatory fee required to document the transfer of real estate ownership in New Jersey. This fee is essential for the legal recognition of the property transfer and must be paid at the time of recording.

C) realty transfer fee

While the realty transfer fee is related to property transactions, it is not the fee that must be paid specifically for the recording of the title transfer. Instead, it is a separate fee applied to the transfer itself and does not serve the same purpose as the recording fee.

D) brokerage commission

The brokerage commission is a fee paid to real estate agents for their services in facilitating a property transaction. This fee is not required for the transfer of title and is therefore irrelevant to the question regarding the mandatory fees associated with title transfer.

E) mortgage placement fee

The mortgage placement fee is a charge associated with securing a loan to purchase property, not a fee related to the transfer of title. Therefore, it does not apply to the requirements of transferring fee simple title in New Jersey.

Conclusion

The recording fee is the correct answer as it is the specific fee mandated for recording the transfer of property ownership in New Jersey. All other options do not pertain directly to the required fee for title transfer, either being incomplete, unrelated, or serving different purposes in real estate transactions. Thus, the recording fee is essential for ensuring that the transfer is legally recognized.