Bill Text: NJ A720 | 2022-2023 | Regular Session | Introduced
Bill Title: Prohibits seller of real estate to transfer realty transfer fee liability to buyer.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2022-01-11 - Introduced, Referred to Assembly Community Development and Affairs Committee [A720 Detail]
Download: New_Jersey-2022-A720-Introduced.html
STATE OF NEW JERSEY
220th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION
Sponsored by:
Assemblyman BRIAN E. RUMPF
District 9 (Atlantic, Burlington and Ocean)
Assemblywoman DIANNE C. GOVE
District 9 (Atlantic, Burlington and Ocean)
SYNOPSIS
Prohibits seller of real estate to transfer realty transfer fee liability to buyer.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act prohibiting the seller of real estate to transfer the liability for the payment of the realty transfer fee to the buyer, and supplementing P.L.1968, c.49 (C.46:15-6 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. No grantor conveying title to real property shall enter into a contract for the sale of real property requiring the grantee of that title to pay the fees imposed upon the grantor pursuant to section 3 of P.L.1968, c.49 (C.46:15-7) and section 2 of P.L.2003, c.113 (C.46:15-7.1).
b. A grantee may bring private legal action against the grantor conveying title to real property to the grantee if the grantor violates the provisions of this section.
c. The court shall order that a grantor conveying title to real property who violates the provisions of this section pay to the grantee:
(1) a refund of all monies received from the grantee for the payment of the realty transfer fee plus $1,000.00; and
(2) the grantee's reasonable attorney's fees, filing fees, and other reasonable expenses incurred in securing a judgment against the grantor.
2. This act shall take effect on the first day of the third month next following the date of enactment.
STATEMENT
This bill prohibits any seller of real estate from entering into a contract for the sale of real estate that obliges the purchaser to pay the realty transfer fee statutorily imposed on the seller. For any violation of this prohibition a buyer would have a right to bring a civil action to require the seller to pay to the buyer the amount of realty transfer fee paid by the buyer plus $1,000 and the amount of reasonable legal expenses incurred by the buyer.
The statutes unambiguously assign the liability for payment of the realty transfer fee to the seller of real estate. Nonetheless, many contracts for the sale of real estate stipulate that the purchaser pay the fee. By explicitly prohibiting this transfer of liability to purchasers, the bill disavows the practice and reaffirms the intent of the existing law that the liability for payment rests exclusively with the seller.
