Fillable Printable Affidavit of Consideration for Use by Buyer - New Jersey

Affidavit of Consideration for Use by Buyer - New Jersey

MUST SUBMIT IN DUPLICATE STATE OF NEW JERSEY

RTF-1EE (Rev. 8/11/06)

AFFIDAVIT OF CONSIDERATION FOR USE BY BUYER

(Chapter 49, P.L.1968, as amend ed through Chapter 33, P.L. 2006) (N.J.S.A. 46:15-5 et seq.)

BEFORE COMPLETING THIS AFFIDAVIT, PLEASE READ THE INSTRUCTIONS ON THE REVERSE SIDE OF THIS FORM

STATE OF NEW JERSEY

}ss. County Municipal Code

COUNTY ___________________ __________ ______

MUNICIPALITY OF PROPERTY LOCATI ON _______________________

(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

(Grantee, Legal Representative, Corporate Officer, Officer of Title Company, Lending Institution, etc.)

real property identified as Block number ___________________________ Lot number ____________________________ located at

_______________________________________________________________________________ and annexed thereto.

(Street Address, Town)

(2) CONSIDERATION

$_______________________________ (See Instructions #1, #5, and #11 on reverse side)

Entire consideration is in excess of $1,000,000:

PROPERTY CLASSIFICATION CHECKED BELOW SHOULD BE TAKEN FROM THE OFFICIAL TAX LIST (A PUBLIC RECORD)

OF THE MUNICIPALITY WHERE THE R EAL PROPERTY IS LOC ATED IN THE YEAR THAT THE TRANSFER IS MADE.

(A) When Grantee is required to remit the 1% fee, complete below:

Class 2 - Residential Class 4A – Commercial Properties

Class 3A - Farm prope rty (Regular) and any (if checked, calculation on (C) required below)

other real property transferred to same grantee

Class 4C - Residential Cooperative Uni t

in conjunction with transfer of Class 3A property (4 Families or less)

(B) When Grantee is not required to remit the 1% fee, complete below:

Property class. Circle applicable class(es): 1 4B 4C 15

Property classes: 1-Vacant Land, 4B-Industrial properties, 4C-Apartments (other than cooperative unit), 15-Public Property

Exempt Organization pursuant to federal Internal Revenue Code of 1986

Incidental to corporate merger or acquisition and equalized assessed valuation less than 20% of total value of

all assets exchanged in merger or acquisition (If checked, calculation in (C) below required and

MUST ATTACH

COMPLETED RTF-4

)

__________________________________________________________________________________________________________

PROPERTY TRANSACTIONS: (See Instructions # 6 and #7 on reverse side)

Total Assessed Valuation ÷ Director’s Ratio = Equalized 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 value.

__________________________________________________________________________________________________________

(3) TOTAL 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 C. 49, P.L. 1968, as amended

through C. 66, P.L. 2004, for the following reason(s). Mere reference to exemption symbol is insufficient. Explain in detail.

______________________________________________________________________________________________________

_______________________

(4) Deponent makes Affidavit of Consideration for Use by Buyer to induce county clerk or register of deeds to record the deed and

accept the fee submitted herewith pursuant to the provisions of Chapter 49, P.L. 1968, as amended through Chapter 33, P.L. 2006.

Subscribed and sworn to bef ore me _____________________________ _ ___________________________

this day of , 20 Signature of Deponent Grantee Name

__________________________________ _______________________________

Deponent Address Grantee Address at Time of Sale

_______________________________

Name/Company of Settlement Officer

County Recording Officers shall forward one copy of each Affidavit of Consideration for Use by Buyer recorded with deeds to:

STATE OF NEW JERSEY- DIVISION OF TAXATION

PO BOX 251

TRENTON, NJ 08695-0251

ATTENTION: RE ALTY 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 it may not be altered or amended

without prior approval of the Director. For further 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

FOR OFFICIAL USE ONLY

Instrument Number___________________ County_________________

Deed Number_________________ Book __________ Page_________

Deed Dated ___________________ Date Recorded ________________

FOR RECORDER’S USE ONLY

Consideration $ ___________________________

RTF paid by buyer $ ___________________________

Date ________________ By _____________________________

INSTRUCTIONS FOR FILING FORM RTF-1EE, AFFIDAVIT OF CONSIDERATION FOR USE BY BUYER

1. CONSIDERATION STATEMENT AND REALTY TRANSFER FEE PAYMENT 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 for Use by Buyer 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 dee d, and (c) for conveyances and transfers of property for which the total consideration

recited in the deed is not in e xcess of $350,000, a fee is remitted at the ra te of $2.00/$500 of consideration or fracti onal 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 ra te 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 i n excess of $200,000 but not in excess of $550,000; $5.30/$500 of co nsideration or fractional part

thereof in excess of $550,0 00 but not in excess of $8 50,000; $5.80/$50 0 of consi der ation or fractional part thereof i n excess of $850,00 but

not in $1,000,0 00; and $6.05/$500 of c onsideration or fr actional part thereof in excess of $1,000,000, which fee shall be paid in addition to

the recording fees imposed by Chapter 123, P.L. 1965, Section 2 (C. 22A:4-4.1) as amended by Chapter 370, P.L. 2001, throug h

Chapter 66, P.L. 2004 and Chapter 19, P.L. 20 05, which fee shall be paid to the county r ecording officer at the tim e the deed is offered for

recording/transfer. Of these fees, $.75/$500 of consid eration or fractional part in excess of $150,000 p aid to the State Treasurer is credited

to the Neighborhood Preservation Nonlapsi ng Revolving Fund.

In addition to all other fees imposed under Chapter 49, P.L. 1968 (C. 46:15-5 et seq.) as amende d through Chapter 33, P.L. 2006, a

fee is imposed upon the grantee of a deed for the transfer of real property for consideration in excess of $1,000,000:

A. that is classified pursuant to the requirements of N.J.A.C. 18:12-2.2 as Class 2 “residential”;

B. that includes property classified pursuant to N.J.A.C. 18:12-2.2 as Class 3A: “farm property (regular)” but only if the property

includes a building or structure intended or suited for residential use, and; any other real property, regardless of class, that is

effectively transferred to the same grantee in conjunction with farm property as described above; or

C. that is a cooperative unit as defined in section 3 of P.L. 1987, c. 381 (C.46: 8D-3).

D. that is classified pursuant to the requirements of N.J.A.C. 18;12-2.2 as Class 4A “commercial properties,” meaning any type of

income-producing properties other than properties in Classes 1, 2, 3A, 3B and those properties in Class 4B and Class 4C as defined in

N.J.A.C. 18:12-2.2 (f) and (g).

The 1% fee is not imposed on an organizati on determined by the federal Internal Revenue S ervice to be exempt from federa l income

taxation pursuant to par agraph (3) of subsection (c) of section 501 of the federal Internal Rev enue Code of 1986, 26 U.S.C. s. 501 that is

the grantee in a deed for consideration in excess of $1,000,000. The 1% fee shall also not apply to a deed if the real property transfer is

incidental to a corporate merger or acquisition and the equalized assessed value of the real property transferred is less than 20% of the

total value of all assets exchanged in the merger or acq uisition.

2. WHEN AFFIDAVIT OF CONSIDERATION FOR USE BY BUYER MUST BE ANNEXED TO DEED

• Recorded with the deed w hen the entire consideration is in excess of $1,000,000 o r the equalized value of the Class 4 A

property is in excess of $1,000,000; however, the Realty Transfer Fee is calculated on the consideration amount recited

in the deed.

• When grantee claims an exemption from payment of the fee;

• When the entire consideration is not recited in the deed or the acknowledgement or pro of of the executi on.

Exemptions from the Realty Transfer F ee are found in N.J.S.A. 46:15-10.

3. LEGAL REPRESENTATIVE

“Legal r epresentative” is to be interpreted broadly to include any person actively and responsibly participating in the transaction, such

as, but not limited to: an attorney repr esenting one of the parties; a closing officer of a title company or le nding institution participating in the

transaction; a holder of power of attorney from grantor or grantee.

4. OFFICER OF CORPORATE GRANTEE/OFFICER OF TITLE COMPANY OR LENDING INSTITUTION

Where a deponent is an officer of corporat e grantee, 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 ass um ed a nd agreed to be pai d by t he gr ante e and any

other lien or encumbrance not paid, satisfied or removed in connection with the transfer of title.

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 Taxatio n, in the Table of Equalized Valuations prom ulgated annually on or before October 1 in each year pursuant to

N.J.S.A. 54:1-35.1. The Table is used in the calculation and apportio nme nt of distributions pursuant to the State School Aid Act of 1954.

7. EQUALIZED VALUE

“Equalized Value” mea ns the assessed value of the proper ty in the year that the transfer is made, divi ded 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. 54:1-35.1. Example:

Assessed value = $1,000,000; Director’s Ratio = 80%. $1,000,000 ÷

.80 = $1,250,000. If Director’s Ratio is less than 100%, the

equalized val uation will be an amou nt greater than the assessed value, if Director’s Ratio is in excess of 100% the assessed va lue will be

equal to the equalized valu e.

8. TOTAL EXEMPTION FROM THE REALTY TRANSFER FEE (GRANTOR/GRANTEE)

The fee imposed by this Act shall not appl y to a deed:

(a) For consideration of less than $100; (b) By or to the U nited States of America, this State, or any ins trumentality, agency or subdivision ;

(c) Solely in order to provide or release sec urity for a debt or obligation; (d) Which confirms or corrects a deed previously record ed; (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 record ed as an “anc ient deed” pursu ant to R.S. 46:16-7; (i) Acknowledged or proved on or before July

3, 1968; (j) Between husband and wife, or parent and child; (k) Conveying a cemetery lot or plot; (l) In specific performance of a final

judgment; (m) Releasing a right of reversion; (n) Previously recorded in another count y and full Realty Transfer Fee paid or accounted for

as evidenced by written instru ment, attested to by the gr ant ee and ackn o wledged by the c ounty recording officer of the count y of such prior

recording, specifying the county, book, page, date of prior recording, and amount of Realty Transfer Fee previously paid; (o) By an

executor or administrator of a decedent to a devis ee or heir to effect distribution of the decedent’s estat e in accordance with the provisions

of the decedent’s will or the intestate la ws of this State; (p) Recor ded within 90 days follo wing the entr y of a d ivorce de cree which dissolves

the marriage between the grantor and grantee; (q) Issued by a cooperative corporation, as part of a conversion of all of the assets of the

cooperative corporation into a condominium, to a sh arehold er upon the sur render b y the sharehol der of a ll of the shareh older’s stock in the

cooperative corporation and the proprietary lease entitling the shareholder to exclusive occupancy of a portion of the property owned by the

corporation.

9. REALTY TRANSFER FEE IS A FEE IN ADDITION TO OTHER RECORDING FEES

The county recording officer is required to collect the Realty T r ansfer F ee at the time the deed is offered for recording/transfer.

10. AFFIDAVITS OF CONSIDERATION FOR USE BY BUYER FORWARDED TO DIRECTOR, DIVISION OF TAXATION

The county recording officers shall forward one copy of each A ffidavit of Consideration fo r Use by Buyer filed an d recorded with deeds

to the Director of the Division of Taxation on the tenth day of the month next following the filing of the deed.

11. PENALTY FOR WILLFUL FALSIFICATION OF CONSIDERATION AND TRANSFERS OF NEW CONSTRUCTION

Any person who kn owingly falsifies the consi deration recited in a deed or in the proof or ackno wledgement 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 guilt y of a crime of the fourth degree ( Chapter 308, P.L. 1991, effective June 1, 1992). The Division of Taxati on is entitled

to review the Fees collect ed pursuant to the State Uniform Procedure Law. The Director of the Div ision of Taxation is authorize d to make

deficiency assessments to taxpayers who have, intentionally or mistakenly, underestimated the consideration or sales price of properties

on the Affidavit of Consideration for Use by Buyer attached to deeds and upon which the Realty Transfer F ee is based.

12. COUNTY/MUNICIPAL CODES

County/Municipal codes may be found at

http://www.state.nj.us/treasury/taxation/pdf/lpt/cntycode.pdf.