NJ Realty Transfer Fee Legislation Has Passed – What You Need to Know

Attorneys, Lenders, and Realtors:

I’m writing to inform you that the New Jersey Legislature has officially passed significant amendments to the NJ Realty Transfer Fee law that will affect high-end real estate transactions beginning July 10, 2025.

🔔 What’s New: Supplemental Realty Transfer Fee (Effective July 10, 2025)

A new graduated tax will apply in addition to the existing Realty Transfer Fee. This Supplemental Fee will be entirely paid by the seller on the amount exceeding the following thresholds:

Sale Price Threshold	Tax Rate	Responsibility
Over $1 million	1%	Seller (formerly paid by buyer)
Over $2 million	2%	Seller
Over $2.5 million	2.5%	Seller
Over $3 million	3%	Seller
Over $3.5 million	3.5%	Seller

📅 Timeline & Refund Provisions

• Applies to all contracts executed on or after July 10, 2025

• Refunds may be issued if:

  • Contract is fully executed before July 10, 2025

  • Deed is recorded on or before November 15, 2025

  
  

This transition relief ensures that in-progress deals are treated fairly.

⚠️ Why This Matters

Originally proposed rates went as high as 5%. Through strong advocacy, the final structure now includes:

• A graduated tax model, rather than a steep flat tax

• A shift in seller responsibility starting at $1M, but no rate increase until $2M

• A transitional refund window for contracts already in motion

Please begin notifying your clients now—particularly sellers listing or under contract near these thresholds. We will provide updated closing documents and education tools shortly.

If you have questions or need clarification on how this impacts your transactions, don’t hesitate to reach out.

Sincerely,

Christopher J. Brown

CEO, ClosePoint USA LLC