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New Jersey Affidavit of Consideration RTF-1 Template

The New Jersey Affidavit of Consideration RTF-1 form is a legal document used during real estate transactions to disclose the consideration paid for a property. This affidavit helps ensure transparency and compliance with state regulations. Understanding its purpose and requirements is essential for both buyers and sellers in New Jersey.

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New Jersey Affidavit of Consideration RTF-1 Template

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The New Jersey Affidavit of Consideration RTF-1 form plays a crucial role in real estate transactions within the state. This form is typically used to declare the consideration, or the amount of money exchanged, during the sale of property. It serves to provide transparency and ensure that all parties involved are aware of the financial details of the transaction. Additionally, the RTF-1 form can help determine the appropriate tax obligations associated with the sale. By accurately completing this affidavit, sellers and buyers can avoid potential disputes and facilitate a smoother closing process. Furthermore, this form is often required by county clerks when recording the deed, making it an essential document for anyone involved in New Jersey real estate dealings. Understanding its components and requirements can empower individuals to navigate the complexities of property transactions with confidence.

Key takeaways

The New Jersey Affidavit of Consideration RTF-1 form is an important document used in real estate transactions. Here are some key takeaways to keep in mind when filling it out and using it:

Purpose of the Form: The RTF-1 form is used to disclose the consideration or payment involved in a real estate transaction. This helps ensure transparency and compliance with state regulations.
Accurate Information: It is crucial to provide accurate and complete information on the form. Errors or omissions can lead to delays or complications in the transaction process.
Signature Requirements: The form must be signed by the seller and, in some cases, the buyer. Make sure all necessary parties sign before submitting.
Submission Process: After filling out the form, it should be submitted to the county clerk's office along with the deed and any other required documents.
Record Keeping: Keep a copy of the completed RTF-1 form for your records. This can be useful for future reference or in case of any disputes.
Consultation with Professionals: If you have questions or need assistance, consider consulting with a real estate attorney or a qualified professional. They can provide guidance tailored to your specific situation.

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Documents used along the form

The New Jersey Affidavit of Consideration RTF-1 form is often used in real estate transactions to provide a sworn statement regarding the consideration paid for property. This form is typically accompanied by several other documents that help clarify the transaction and ensure compliance with state regulations. Below is a list of related forms and documents that may be required or beneficial in conjunction with the RTF-1 form.

Deed: This legal document transfers ownership of real property from one party to another. It includes details about the property and the parties involved.
Title Search Report: A report that outlines the ownership history of a property, ensuring that the title is clear of any liens or claims before the transaction is finalized.
Bill of Sale: Similar to the RTF-1 form, a Bill of Sale form is essential in certain transactions, particularly for personal property transfers. For more information, you can visit Formaid Org.
Purchase Agreement: A contract between the buyer and seller that outlines the terms of the sale, including price, financing, and contingencies.
Settlement Statement (HUD-1): A detailed account of all financial transactions involved in the sale, including closing costs, fees, and the distribution of funds.
Property Disclosure Statement: A document in which the seller discloses known issues or defects with the property to the buyer, ensuring transparency in the transaction.
Mortgage Documents: These include the promissory note and mortgage agreement that detail the terms of financing for the buyer, if applicable.
IRS Form 1099-S: This form reports the sale of real estate to the IRS, ensuring compliance with tax regulations related to the transaction.
Identification Documents: A form of ID, such as a driver's license or passport, may be required to verify the identities of the parties involved in the transaction.
Power of Attorney: If one party cannot be present for the transaction, this document allows another individual to act on their behalf, facilitating the closing process.

Each of these documents plays a crucial role in the real estate transaction process in New Jersey. Having them prepared and organized can help ensure a smooth closing and protect the interests of all parties involved.

Dos and Don'ts

When filling out the New Jersey Affidavit of Consideration RTF-1 form, it is important to follow certain guidelines. Here is a list of things you should and shouldn't do:

Do read the instructions carefully before starting.
Don't leave any required fields blank.
Do provide accurate information to avoid delays.
Don't use abbreviations or shorthand in your responses.
Do sign and date the form in the appropriate sections.
Don't submit the form without double-checking for errors.
Do keep a copy of the completed form for your records.
Don't forget to include any necessary supporting documents.
Do seek assistance if you have questions about the form.

Following these guidelines will help ensure that your form is completed correctly and processed efficiently.

Common mistakes

Filling out the New Jersey Affidavit of Consideration RTF-1 form can be a straightforward process, but there are common mistakes that many individuals make. One of the most frequent errors is neglecting to provide complete information about the transaction. This form requires specific details about the property being transferred, including its address and the nature of the transaction. Omitting any of this information can lead to delays or even rejection of the form.

Another common mistake is failing to sign the affidavit. The RTF-1 form must be signed by the seller or the authorized representative. If the signature is missing, the document will not be considered valid. It's crucial to double-check that all required signatures are included before submitting the form.

Many people also overlook the importance of accurately stating the consideration amount. The consideration refers to the total amount paid for the property, and it should be reflected correctly on the form. Misstating this figure can result in incorrect tax assessments or legal complications down the line. Always ensure that the amount matches the actual transaction details.

Lastly, individuals often forget to provide the necessary supporting documentation. The RTF-1 form may require attachments, such as a copy of the sales contract or other relevant documents. Failing to include these can lead to processing delays. It is advisable to review the requirements carefully and attach all necessary paperwork to ensure a smooth filing process.

File Characteristics

Fact Name	Description
Purpose	The New Jersey Affidavit of Consideration RTF-1 form is used to disclose the consideration paid for a property during a real estate transaction.
Governing Law	This form is governed by New Jersey Statutes Annotated (N.J.S.A.) 46:15-5.
Filing Requirement	It must be filed with the county clerk's office when recording a deed.
Signatories	The form must be signed by the seller or their authorized representative.
Consideration Types	Consideration can include cash, property exchange, or other forms of payment.
Impact on Taxes	The information provided may affect the calculation of transfer taxes imposed by the state.

Form Sample

RTF-1 (Rev. 4/17)

MUST SUBMIT IN DUPLICATE

STATE OF NEW JERSEY

AFFIDAVIT OF CONSIDERATION FOR USE BY SELLER (P.L.1968, c. 49, as amended through P.L. 2006, c. 33) (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
STATE OF NEW JERSEY	}ss. County Municipal Code	FOR RECORDER’S USE ONLY
		FOR RECORDER’S USE ONLY
		Consideration	$ _____________________
		RTF paid by seller	$ ___________________
COUNTY	_________________ ________________	Date___________ By _____________________
MUNICIPALITY OF PROPERTY LOCATION _________________________
MUNICIPALITY OF PROPERTY LOCATION _________________________		*Use symbol “C” to indicate that fee is exclusively for county use.

(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

(Grantor, 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 $__________________(Instructions #1 and #5 on reverse side) no prior mortgage to which property is subject.
_________________________________________________________________________________________________________
(3)	Property transferred is Class 4A 4B 4C (circle one). If property transferred is Class 4A, calculation in Section 3A below is required.

(3A)REQUIRED CALCULATION OF EQUALIZED VALUATION FOR ALL CLASS 4A (COMMERCIAL) PROPERTY TRANSACTIONS: (See Instructions #5A and #7 on reverse side)

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

(4)FULL 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 P.L. 1968, c. 49 as amended through P.L. 2004, c. 66 for the following reason(s). Mere reference to exemption symbol is insufficient. Explain in detail.

______________________________________________________________________________________________________________

(5)PARTIAL EXEMPTION FROM FEE ( Instruction #9 on reverse side)

NOTE: All boxes below apply to grantor(s) only. ALL BOXES IN APPROPRIATE CATEGORY MUST BE CHECKED. Failure to do so will

void claim for partial exemption. Deponent claims that this deed transaction is exempt from State portions of the Basic, Supplemental, and General Purpose Fees, as applicable, imposed by P.L. 1975, c. 176, P.L. 2004, c. 113 and P.L. 2004, c. 66 for the following reason(s):

______________________________________________________________________________________________________________________

A.SENIOR CITIZEN Grantor(s) 62 years of age or over. * ( Instruction #9 on reverse side for A or B)

B.BLIND PERSON Grantor(s) legally blind or; *

DISABLED PERSON Grantor(s) permanently and totally disabled receiving disability payments not gainfully employed*

Senior citizens, blind persons, or disabled persons must also meet all of the following criteria:

Owned and occupied by grantor(s) at time of sale.	Resident of State of New Jersey.
One or two-family residential premises.	Owners as joint tenants must all qualify.

*IN CASE OF HUSBAND AND WIFE, PARTNERS IN A CIVIL UNION COUPLE, ONLY ONE GRANTOR NEED QUALIFY IF TENANTS BY THE ENTIRETY.

________________________________________________________________________________________________________________________________________________

C.LOW AND MODERATE INCOME HOUSING (Instruction #9 on reverse side)

Affordable according to H.U.D. standards.	Reserved for occupancy.
Meets income requirements of region.	Subject to resale controls.

(6)NEW CONSTRUCTION (Instructions #2, #10 and #12 on reverse side)

Entirely new improvement.	Not previously occupied.
Not previously used for any purpose.	“NEW CONSTRUCTION” printed clearly at top of first page of the deed.

________________________________________________________________________________________________________________________________________________

(7)RELATED LEGAL ENTITIES TO LEGAL ENTITIES (Instructions #5, #12, #14 on reverse side)

No prior mortgage assumed or to which property is subject at time of sale.

No contributions to capital by either grantor or grantee legal entity.

No stock or money exchanged by or between grantor or grantee legal entities.

________________________________________________________________________________________________________________________________________________

(8)Deponent makes this Affidavit to induce county clerk or register of deeds to record the deed and accept the fee submitted herewith in accordance with the provisions of P.L. 1968, c. 49 as amended through P.L. 2006, c. 33.

Subscribed and sworn to before me			____________________________	______________________________
this	day of	, 20	Signature of Deponent	Grantor Name

_____________________________________		________________________________________
	Deponent Address	Grantor Address at Time of Sale
	_______ XXX-XX-X___________ _	______________________________
Last three	digits in Grantor’s Social Security Number	Name/Company of Settlement Officer

FOR OFFICIAL USE ONLY
Instrument Number___________________ County_________________
Deed Number_________________ Book __________ Page_________
Deed Dated ___________________ Date Recorded ________________
County recording officers shall forward one copy of each RTF-1 form when Section 3A is completed to:	STATE OF NEW JERSEY

PO BOX 251

TRENTON, NJ 08695-0251

ATTENTION: REALTY 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 may not be altered or amended without prior approval of the Director. For 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

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

1.STATEMENT OF CONSIDERATION AND REALTY TRANSFER FEE PAYMENT ARE 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 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 deed, and (c) for conveyances and transfers of property for which the total consideration recited in the deed is not in excess of $350,000, a fee is remitted at the rate of $2.00/$500 of consideration or fractional 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 rate 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 in excess of $200,000; $5.30/$500 of consideration or fractional part thereof in excess of $550,000 but not in excess of $850,000; $5.80/$500 of consideration or fractional part thereof in excess of $850,00 but not in $1,000,000; and $6.05/$500 of consideration or fractional part thereof in excess of $1,000,000, which fee shall be paid in addition to the recording fees imposed by, P.L. 1965 c. 123, Section 2 (C. 22A:4-4.1) as amended by, P.L. 2001, c. 370, through, P.L. 2004, c. 66, which fee shall be paid to the county recording officer at the time the deed is offered for recording/transfer. Of these fees, $.75/$500 of consideration or fractional part in excess of $150,000 paid to the State Treasurer is credited to the New Jersey Affordable Housing Trust Fund.

2.WHEN AFFIDAVIT MUST BE ANNEXED TO DEED

This Affidavit must be annexed to and recorded with all deeds when entire consideration is not recited in deed or the acknowledgement or proof of the execution, when the grantor claims a total or partial exemption from the fee, Class 4 property that includes commercial, industrial, or apartment property, and for transfers of “new construction.” (See Instructions #10 and #12 below.)

3.LEGAL REPRESENTATIVE

“Legal representative” is to be interpreted broadly to include any person actively and responsibly participating in the transaction, such as, but not limited to: an attorney representing one of the parties; a closing officer of a title company or lending institution participating in the transaction; a holder of power of attorney from grantor or grantee.

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

Where a deponent is an officer of corporate grantor, 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 assumed and agreed to be paid by the grantee and any other lien or encumbrance not paid, satisfied or removed in connection with the transfer of title. (P.L. 1968, c. 49, Section 1, as amended.)

5A. CLASS 4A “COMMERCIAL PROPERTIES” DEFINED

Class 4A “Commercial properties” as defined in N.J.A.C. 18:12-2.2 means “any other type of income-producing property other than property in classes 1, 2, 3A, 3B, and those properties included in classes 4B and 4C.” A quarterly audit of all Class 4A sales submitted by the municipal assessor through the SR- 1A/equalization process will determine whether a Class 4A transaction was recorded without proper documentation and the required Affidavits of Consideration.

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 Taxation, in the Table of Equalized Valuations promulgated 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 apportionment of distributions pursuant to the State School Aid Act of 1954.

7.EQUALIZED VALUE

“Equalized Value” means the assessed value of the property in the year that the transfer is made, divided 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)

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

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

(a)For consideration of less than $100; (b) By or to the United States of America, this State, or any instrumentality, agency or subdivision; (c) Solely in order to provide or release security for a debt or obligation; (d) Which confirms or corrects a deed previously recorded; (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 recorded as an “ancient deed” pursuant to N.J.S.A. 46:16-7; (i) Acknowledged or proved on or before July 3, 1968; (j) Between husband and wife/civil union partners, 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 county and full Realty Transfer Fee paid or accounted for as evidenced by written instrument, attested to by the grantee and acknowledged by the county recording officer of the county 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 devisee or heir to effect distribution of the decedent’s estate in accordance with the provisions of the decedent’s will or the intestate laws of this State; (p) Recorded within 90 days following the entry of a divorce/dissolution decree which dissolves the marriage/civil union partnership between 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 shareholder upon the surrender by the shareholder of all of the shareholder’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.PARTIAL EXEMPTION FROM THE REALTY TRANSFER FEE (P.L. 1975, c. 176; P.L. 2003, c. 113; P.L. 2004, c. 66)

The following transfers of title to real property shall be exempt from State portions of the Basic Fee, Supplemental Fee, and General Purpose Fee, as applicable: 1. The sale of any one or two-family residential premises which are owned and occupied by a senior citizen, blind person, or disabled person who is the seller in such transaction; provided, however, that except in the instance of a husband and wife/partners in a civil union couple, no exemption shall be allowed if the property being sold is owned as joint tenants and one or more of the owners is not a senior citizen, blind person, or disabled person; 2. The sale of Low and Moderate Income Housing conforming to the requirements as established by this Act.

For the purposes of this Act, the following definitions shall apply:

“Blind person” means a person whose vision in his better eye with proper correction does not exceed 20/200 as measured by the Snellen chart or a person who has a field defect in his better eye with proper correction in which the peripheral field has contracted to such an extent that the widest diameter of visual field subtends an angular distance no greater than 20º.

“Disabled person” means any resident of this State who is permanently and totally disabled, unable to engage in gainful employment, and receiving disability benefits or any other compensation under any federal or State law.

“Senior citizen” means any resident of this State of the age of 62 or over.

“Low and Moderate Income Housing” means any residential premises, or part thereof, affordable according to Federal Department of Housing and Urban Development or other recognized standards for home ownership and rental costs occupied or reserved for occupancy by households with a gross income equal to 80% or less of the median gross household income for households of the same size within the housing region in which the housing is located, but shall include only those residential premises subject to resale controls pursuant to contractual guarantees.

“Resident of the State of New Jersey” means any claimant who is legally domiciled in this State when the transfer of the subject property is made. Domicile is what the claimant regards as the permanent home to which he intends to return after a period of absence. Proofs of domicile include a New Jersey voter registration, motor vehicle registration and driver’s license, and resident tax return filing.

10. TRANSFERS OF NEW CONSTRUCTION

“New construction” means any conveyance or transfer of property upon which there is an entirely new improvement not previously occupied or used for any purpose. On transfers of new construction, the words “NEW CONSTRUCTION” shall be printed clearly at the top of the first page of the deed, and an Affidavit by the grantor stating that the transfer is of property upon which there is new construction shall be appended to the deed.

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

The county recording officer is required to collect the Realty Transfer Fee at the time the deed is offered for recording/transfer.

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

Any person who knowingly falsifies the consideration recited in a deed or in the proof or acknowledgement 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 guilty of a crime of the fourth degree (P.L. 1991, c. 308, effective June 1, 1992). Grantors conveying title of new construction who fail to subscribe and append to the deed an affidavit to that effect in accordance with the provisions of subsection c. of section 2 of P.L. 1968, c. 49 (C.46:15-6) is guilty of a disorderly persons offense. The Division of Taxation is entitled to review the Fees collected pursuant to the State Uniform Procedure Law. The Director of the Division of Taxation is authorized to make deficiency assessments to taxpayers who have, intentionally or mistakenly, underestimated the consideration or sales price of properties on the Affidavit of Consideration attached to deeds and upon which the Realty Transfer Fee is based.

13.COUNTY/MUNICIPAL CODES

County/Municipal codes may be found at http://www.state.nj.us/treasury/taxation/pdf/lpt/cntycode.pdf.

14.LEGAL ENTITIES TRANSFERRING NEW JEREY REAL ESTATE TO RELATED LEGAL ENTITIES

Legal entities transferring New Jersey real estate to related legal entities are not exempt from the Realty Transfer Fee if the consideration, as defined in the law, is $100 or more. Such consideration includes the actual amount of money and/or the monetary value of any other thing of value constituting the entire compensation paid, such as the dollar value of stock included in the transaction or any enhancement to or contribution to the capital or either legal entity resulting from the transfer, or remaining balances of any prior mortgage to which the property is subject or which is assumed and agreed to be paid by the grantee and any other lien or encumbrance not paid, satisfied or removed in connection with the transfer of title.