Who pays closing costs in New Jersey, buyer or seller?
New Jersey charges the realty transfer fee to the seller when the deed for a sale is recorded. The Department of Banking and Insurance describes title insurance as protecting the buyer and the lender up to the purchase price if title proves invalid, paid as a one-time fee at closing.
| Line | Who pays, per the source | Amount or rule |
|---|---|---|
| Seller side | ||
| Realty transfer fee | Seller | Per $500 of the price, by bracket |
| Graduated Percent Fee, sales over $1,000,000 | Seller | 1% to 3.5% of the whole price |
| GIT/REP form | Every seller | Filed for the deed to be recorded |
| Estimated income tax, nonresident sellers | Seller | Gain x 10.75%, at least 2% of the price |
| Smoke alarm and CO alarm certificate | Owner | Set by the town, or by DCA's commissioner where DCA enforces |
| Buyer side | ||
| Title insurance | Buyer | One-time fee at closing |
| Lender's one-time costs: application, credit report, appraisal, survey and others | Buyer with a mortgage | — |
| Either side, or set by the parties or the town | ||
| Deed recording | — | $30 first page, $10 each added page (statute) |
| Town resale inspection or certificate | Set by the town | Varies by town |
| Property taxes, water and sewer | Adjusted between the parties | By period of ownership |
What does the seller pay at closing in New Jersey?
The realty transfer fee is paid to the county recording officer when the deed is offered for recording, in addition to the recording fees. On a sale for more than $1,000,000, the State adds a Graduated Percent Fee, graduated by the total price, and the seller is legally responsible for it.
- Graduated Percent Fee applies above$1,000,000
- Imposed on the seller sinceJuly 10, 2025
Since July 10, 2025, the over-$1 million fee is imposed on the seller, not the buyer. Taxation says the parties can split or shift who bears the Graduated Percent Fee in their contract.
Legal responsibility for all transfer fees stays with the seller, and Taxation treats contract terms that say otherwise as private arrangements.
The realty transfer fee guide has every rate bracket.
Do out-of-state sellers pay New Jersey tax at closing?
Taxation says state law requires nonresident sellers to pay estimated gross income tax of 2% of the price on a sale of New Jersey real property. The payment is due before or at closing, whether or not the seller has a gain.
- Estimated paymentGain x 10.75%, at least 2% of the price
- Form for a nonresident sellerGIT/REP-1
- Form for a resident sellerGIT/REP-3
The county clerk will not accept a deed unless it comes with a properly completed and signed GIT/REP-1, -2 or -3 form. The nonresident seller gives Form GIT/REP-1 and the payment to the settlement agent at closing.
A seller that is not an individual, estate or trust can check a GIT/REP-3 box saying it is not required to make the estimated payment.
How much does it cost to record a deed in New Jersey?
The county recording fee statute sets a base charge for the first page and a smaller one for each added page; county schedules can be higher.
| Instrument | First page | Each added page |
|---|---|---|
| Any instrument, by statute | $30 | $10 |
| Deed, Burlington County | $45 | $10 |
| Mortgage, Burlington County | $35 | $10 |
Burlington County's current schedule says all its recording fees are set by legislation and counts the cover sheet as the first page.
What certificate does a New Jersey seller need before closing?
Where no town certificate ordinance applies, the owner of a home used by not more than two households may not sell, lease or otherwise let it be occupied for residential purposes without first getting a certificate of compliance with the smoke alarm law from the fire enforcing agency.
The certificate fee is set by the town's governing body, or by the Commissioner of Community Affairs where DCA's Division of Fire Safety is the enforcing agency, to cover the cost of inspection and of issuing the certificate.
Where a town ordinance requires its own certificate of occupancy or inspection on a change of occupancy, the town may not issue it until it finds the building has the required smoke alarms.
The certificates of occupancy guide covers the town rules.
What does the buyer pay at closing in New Jersey?
The Department of Banking and Insurance describes title insurance as protecting the buyer and the lender up to the purchase price if title proves invalid, paid as a one-time fee at closing.
The same guide lists loan application, credit report, appraisal, commitment, lock-in, inspection, title insurance and survey fees among a mortgage buyer's one-time closing costs.
How are property taxes split at a New Jersey closing?
New Jersey law treats current-year property taxes and water and sewer charges as items ordinarily adjusted between buyer and seller by period of ownership, and leaves them out of the price used for the transfer fee.
The property taxes guide has each county's average bill.