Monmouth County real estate lawyer Christine Matus releases a new blog post (https://matuslaw.com/who-pays-the-mansion-tax-in-nj/) explaining what mansion tax is. The lawyer says that home values have significantly increased in New Jersey and across the United States. Anything worth over $1,000,000 may be subject to what’s known as a “mansion tax”.
“When a property changes hands, a transfer fee is paid to the county where the property is located. The transfer fees are deducted from the seller’s proceeds at closing and paid to the country when the new deed to the buyer is recorded,” says the Monmouth County real estate lawyer.
The lawyer explains in the blog that New Jersey has an additional fee of 1% of the sale price for properties with a value of $1,000,000 or more. A mansion tax may also apply to commercial properties. The mansion tax is typically paid by the seller at the close of the deal.
The real estate attorney also points out that there are some properties exempted from the mansion tax. These properties include vacant property, farm property without an established residence, farm property that qualifies for farmland assessment, industrial property, apartment buildings of five or more units, cemeteries, schools, churches, and properties held by charitable organizations.
According to the New Jersey real estate lawyer, “Certain types of transfers can also be exempted from the mansion tax. These can include bankruptcies, transfers between family members, transfers in accordance with the terms of a will, transfers in accordance with a divorce decree, correction deeds, or properties sold for a consideration less than $100 if no mortgage exists.”
Attorney Matus says that $1million dollar homes are more prevalent today than they were in the past due to the current real estate market. When someone is considering selling their house, they should check first whether their property will be subject to mansion-tax at closing.
Lastly, attorney Christine Matus emphasizes the importance of having an experienced real estate lawyer. A skilled real estate attorney can help clients to understand whether they will have to pay the mansion tax on the sale of their property and what they should do.
About The Matus Law Group
The Matus Law Group has a team of real estate attorneys committed to helping families and individuals in real estate transactions in New Jersey and New York. Through a team approach, they work hard to help their clients with their real estate needs. Call The Matus Law Group today at (732) 785-4453.
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Matus Law Group – Monmouth County
125 Half Mile Rd Red Bank, NJ 07701