NJ Realty transfer tax - Title transfer to my LLC

NJ Realty transfer tax - Title transfer to my LLC

Member since 2018 · 14 posts · 0 votes

I own a property in my personal name and I am looking to transfer it to my LLC.
I have a mortgage on that house.

My attorney prepared the deed for the title transfer and I went to the Clerk office of Morris County, NJ to record the deed.
The deed is a bargain and sale deed and the consideration amount on the deed is $1.00

To my shock, the county clerk's office does not want to record the deed because of the mortgage on the house. 
They want me to pay the realty transfer fee on the remaining balance of the mortgage.

We are talking several thousand of dollars. That is insane.
I am transferring the title to my LLC for asset protection and there is no other unrelated third party involved.

I don't think I should be paying realty transfer fee. It is unfair.
What should I do?

Have you been in that situation?
Any suggestion is welcome.

Thank you.

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Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
7y

That's how it works, unfortunately! 

See this reply in the discussion

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  • Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
    7y

    That's how it works, unfortunately! 

  • Member since 2018 · 14 posts · 0 votes
    7y

    Would that make a difference if it was a quit claim deed?
    Thanks

  • Member since 2018 · 14 posts · 0 votes
    7y

    @Jessica Zolotorofe 
    Would I be exempt from the NJ realty transfer fee if I use a quit claim deed instead of bargain and sale deed?
    Thanks

  • Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
    7y

    @Peter J. I think even a quit claim deed requires trasfer tax being paid

  • Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
    7y

    @Peter J. sorry for the delay. You may want to confirm with your attorney or call the clerk, I'm not positive, but if it was that easy to circumvent the law, there would be no reason for the law, so I highly doubt a quit claim deed makes any difference. 

  • Member since 2020 · 1 post · 0 votes
    6y

    Hi Peter,

    Did you have to pay the transfer tax?  I am going through the same thing right now

    Thanks

    Tom

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