Question 76

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

In New Jersey, the realty transfer fee is categorized as a debit to the seller on the closing statement. This means that the fee reduces the proceeds the seller receives from the sale of the property.

A) debit to the seller

This option is correct because the realty transfer fee is indeed deducted from the seller's proceeds during the closing process. It is a cost that the seller is responsible for paying, thus appearing as a debit on their account.

B) debit to the buyer

This option is incorrect as the realty transfer fee is not charged to the buyer. Instead, it is the seller who incurs this expense, which is reflected as a debit in their closing statement.

C) credit to the seller

This option is incorrect because a credit would imply that the seller receives funds or benefits from this fee, which is not the case. The realty transfer fee is an expense for the seller, leading to a debit rather than a credit.

D) credit to the buyer

This option is also incorrect. The realty transfer fee does not provide any credit to the buyer, as it is not a fee they are responsible for. The fee is specifically a cost borne by the seller.

Conclusion

The correct answer, a debit to the seller, accurately reflects the financial responsibility for the realty transfer fee in New Jersey. All other options misrepresent who bears the cost, as the buyer does not incur this fee and the seller is charged, resulting in a decrease in their proceeds from the sale.