Question 34

The realty transfer fee appears on the closing statement as a debit to the seller.

In New Jersey, the realty transfer fee is recorded on the closing statement as a debit to the seller, reflecting the seller's responsibility to pay this fee during the transaction.

A) debit to the seller

This option is correct because the realty transfer fee in New Jersey is charged to the seller and is shown as a debit on the closing statement. This means that the amount is deducted from the seller's proceeds at the closing of the sale.

B) debit to the buyer

This option is incorrect as the realty transfer fee is not charged to the buyer in New Jersey. Instead, the fee is the seller's obligation and therefore would not appear as a debit on the buyer's side of the closing statement.

C) credit to the seller

This option is incorrect because the realty transfer fee is not a credit to the seller. A credit would imply that the seller is receiving money, whereas the transfer fee is an expense that the seller must pay.

D) credit to the buyer

This option is incorrect as the realty transfer fee does not apply as a credit to the buyer. The fee does not benefit the buyer in any way and is solely a cost incurred by the seller.

Conclusion

The correct answer is definitively A, as the realty transfer fee is a direct cost to the seller in New Jersey, clearly indicated as a debit on the closing statement. Other options fail because they misrepresent the nature of the fee, which is specifically the seller's responsibility and not a cost to the buyer or a credit to either party.