Judith Sutton ABR CRS IDS PMN ASP IAHSP SRES GREEN
Judy@JudithSutton.com 908 803-0472
EXPECT MORE
WHAT’S NEW IN REAL ESTATE TRANSACTIONS?
What to expect on your closing documents in New Jersey
Since 2004, buyers have been paying a flat (Mansion) tax to the state for sales on homes over $1M.
Now, an updated law requires sales $1M and more to pay a GRADUATED RATE which targets all higher-end transactions going forward…
*Note- This tax applies to all residential properties, single family homes, condos, and co-ops- also commercial and farm properties that have residential components
In addition to the monetary changes, the tax now moves the responsibility of the tax to the seller.
The "Mansion Tax fee" is a supplemental charge, or "graduated percent fee," that is added on top of New Jersey's standard Realty Transfer Fee (RTF) for high-value property sales. In effect since July 10, 2025, it applies to residential and commercial properties sold for more than $1 million.
Here is a breakdown of the differences between the Mansion Tax fee and the Standard Realty Transfer Fee in New Jersey:
Features (definition):
The Mansion Tax Fee (Graduated Percent Fee) is a supplemental charge layered on top of the standard RTF fee
The Standard Realty Transfer Fee (RTF) A foundational, one-time tax on the conveyance of title to real property in New Jersey.
Triggering amount: Mansion Tax Fee Applies only to properties sold for more than $1 million.
Standard Transfer Fee (RTF) Applies to most real estate transactions, including properties sold for less than $1 million.
Fee structure: Mansion Tax Fee Uses a graduated percentage rate that increases with the total sales price. For transactions over $1 million, the rates range from 1% to 3.5%, depending on the price tier.
Standard Transfer Fee (RTF) Uses a progressive rate structure for different price brackets. It includes different rates for transactions under or over $350,000.
Who pays: Mansion Tax Fee The seller is responsible for paying this fee, as of July 10, 2025. Previously, it was paid by the buyer.
Standard Transfer Fee (RTF) The seller is typically responsible for paying the standard RTF.
Impact on cost: Mansion Tax Fee Increases the overall closing costs significantly for high-value properties.
Standard Transfer Fee (RTF) Is a standard closing cost in most New Jersey real estate transactions.
Affected properties: Mansion Tax Fee Includes residential properties, cooperative units, and many commercial and farm properties with residential components.
Standard Transfer Fee (RTF) Generally applies to all real estate transfers, with certain exemptions.
Notable exemptions: Mansion Tax Fee Exemptions are limited, but may apply to transfers involving certain non-profit organizations or government agencies.
Standard Transfer Fee (RTF) Offers exemptions and reduced rates for specific situations, such as transfers between family members and to senior citizens, blind persons, or disabled persons.
To fully understand the impact this new law has on you, being a buyer or a seller, I advise you to consult with a legal professional early in the process to have a full understanding about how this will impact you.
As a Real Estate professional, I am here to help. Please reach out to me with your questions.
By partnering with the Judith Sutton Team, clients immediately tap into a wealth of resources, knowledge, and support, making the real estate process smoother and more successful from the very first day.
By incorporating my personal attention and guidance into the marketing strategy I aim to provide you with
an Exceptional Selling Experience
while ensuring that your property receives the exposure needed
to attract buyers from anywhere
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Get a positive, helpful partner for buying or selling your home:
Trusted resource for answers about the process
Innovative marketing strategies
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Ability to target home searches
Strong negotiation skills
Support through the closing and beyond
Why would you settle for anything less?
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Judy@JudithSutton.com
COLDWELL BANKER...GUIDING PEOPLE HOME SINCE 1906
908 803-0472
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