In New Jersey, how is the realty transfer fee classified on the closing statement?

In New Jersey, the realty transfer fee is classified as a debit to the seller on the closing statement. This fee, which is imposed when the property changes hands, is typically the seller’s responsibility. It is calculated based on the sale price of the property and is paid at the time of closing.

By designating the realty transfer fee as a debit to the seller, it reflects the obligation that the seller has to pay this fee as part of the closing costs associated with the sale of the property. This classification aligns with the general practice in real estate transactions, where fees and costs associated with the sale are charged to the party responsible for those costs.

In contrast, any credits would suggest a financial benefit or reimbursement due to a party, which does not apply in this case for the seller regarding the realty transfer fee. Thus, understanding that this fee is a cost incurred by the seller helps clarify why it is documented as a debit on the closing statement.