Property Deeds Done Right in New Jersey Real Estate Transactions

April 29, 2024

In a New Jersey Real Estate Transaction, a Deed Serves as a Legal Contract Transferring Ownership from Seller To Buyer. It’s A Public Record That Acts as Crucial Proof if Ownership is Ever Challenged.

Property Deeds Done Right in New Jersey Real Estate TransactionsIn New Jersey, a deed is used to transfer ownership of land, real estate, and buildings between two people. It names the property’s grantor (seller) and the grantee (buyer). A deed allows a property, home, or building to change hands legally in a financial transaction. It is a public record and an important legal document for the property, serving as an indisputable record of ownership. If there is a dispute over land ownership, the deed provides the necessary information.

Overview of Property Deed Types and Uses

Deeds have different classifications.  A general warranty deed contains a list of legally binding promises called covenants guaranteeing that the grantor is legally eligible to transfer the property and that there are no liens or debts against it.  A special warranty deed does not assure that there were no debts or liens against the property before the grantor owned it but says that there were no encumbrances while the seller owned it.  A bargain and sale deed names the property owner but does not protect the grantee from debts or liens. A quitclaim deed is frequently used in cases of divorce when there is no question about who owns the property and the ownership is changed without a financial transaction.  No warranties or covenants are offered, and if there is a lien on the property, the grantee will have to rectify it.

For specific property situations, there are several special-purpose deeds. An administrator’s deed, for instance, is used to transfer the property of someone who passed away without a will to their descendants. This is done once the probate court has assigned an administrator of the estate, who will then distribute all the property.  An executor’s deed, on the other hand, is used when the grantor has a will that names the recipient(s) of the property. A sheriff’s deed is given to the grantee who purchased the property through an auction to satisfy a judgment against the owner.  A tax deed is given when a property is sold for unpaid taxes.  A gift deed transfers the property’s title to the grantee who receives the property as a gift.  A deed of dedication is one that is given as a donation to a charity.  Lastly, a deed instead of foreclosure is used to prevent foreclosure proceedings, offering an alternative that could be less detrimental to the grantor than a lender foreclosing on the property.

Deed Transfer Process in New Jersey Real Estate

Obtaining a deed to buy and sell real estate in New Jersey requires many steps.  When the closing date is near, the seller’s attorney prepares a deed with the agreed-upon guarantees for the buyer, defining the value being transferred to them.  The seller’s lawyer drafts an affidavit of title.  Once the deed has been completed and applied, it is filed at the county clerk’s office.  Additional information is added to the filing regarding the location of the property, filing fees, and applicable taxes.

Understanding NJ Property Deed Obligations

A deed must include the names of the grantor and grantee, their addresses, and the grantor’s signature (or someone authorized to sign on their behalf). It must also have a granting clause stating that the property is being transferred and the kind of ownership interest is being transferred.   A New Jersey deed has the municipality and county of the property, its physical address, and a clause acknowledging the previous deed.  The deed must have a current tax map reference (the block number and lot) on the municipality tax map.  This number is usually found on the prior deed.  The cost of the property or a statement that it was not purchased (as in the case of inheritance) with an Affidavit of Consideration for Use by Seller attached to the deed.  If the deed represents real estate with a structure that has never been used, it must be identified as “New Construction.”

A deed must be in writing, and the grantor must be able to transfer the property legally. The grantee must be competent to accept the transfer. The grantor and grantee must be named on the deed, and a description of the property must be included.   The purchase price (if any), the date of the transfer, and the obligations of the grantor and grantee must be indicated.  The deed must be signed and delivered to the grantee, who accepts or rejects the delivery of the deed.

Recording Fees and Transfer Taxes for New Jersey Real Estate

The recording fee varies and can be between $30 and $50 depending on the county and the kind of deed being submitted. There is an extra $20 charge for deeds without a cover page and a $10 fee for each additional page.  The person who requests that the deed be recorded is responsible for paying the fees.  New Jersey has a transfer tax that the grantor pays.  The tax must be paid when the deed is submitted for recording.  There are instances when a deed is tax-exempt.  Your attorney can give you more information regarding the taxes owed.  The realty transfer fee is based on the amount paid for the property.

Essential Components for Ensuring the Legitimacy of Property Deeds in Belmar, New JerseyVital Role of Deed Recording in Ensuring Clean Property Titles

Without a deed, you cannot claim ownership of a property or transfer it to someone else. To record a deed, a comprehensive investigation of all records regarding the property is enacted to affirm that the property has no liens, claims, or other encumbrances that could hinder its transfer.

Monmouth County Lawyers Addressing Property Deed Concerns if You Are Buying or Selling in NJ

Recording a deed is a detailed, complex process that should only be done by a knowledgeable attorney. Mix-ups and mistakes can be costly and take more time than necessary, and you don’t want to leave your real estate transactions in the hands of amateurs. Our attorneys at Chamlin, Uliano & Walsh are experienced in residential and commercial real estate law in Red Bank, Colts Neck, Middletown, Toms River, Freehold, Lavallette, Howell, Long Branch, and throughout Ocean and Monmouth County. We are aware of the tax implications and other financial aspects of a property transfer and how to investigate, prepare, and submit a deed. We are ready to handle any potential problems, keeping your interests at the forefront of every transaction.

Call us today at (732) 440-3950  and schedule a consultation in which you can tell us how we can best serve you in your legal real estate matter.  You can also contact us online by following this link.



Categorised in: Real Estate Law