If you're getting ready to sell a high-end property in Jersey, you’ll want to pay close attention—especially with the law changes effective July 10, 2025. These revisions fundamentally change ‘who pays’ and ‘how much’ in transfer fees, and as a savvy real estate professional with decades of experience here, I want to walk you through it.
Here's what’s Changed?
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Fees kick in at $1M—but scale up quickly:
Previously, buyers paid a flat 1% “mansion tax” on homes over $1 million. Now, that cost shifts to the seller and becomes tiered:-
$1M–$2M → 1%
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$2M–$2.5M → 2%
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$2.5M–$3M → 2.5%
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$3M–$3.5M → 3%
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Above $3.5M → 3.5%
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Seller shoulders all transfer costs:
With this change, sellers are now responsible for both the standard Realty Transfer Fee (RTF) and the supplemental “mansion tax”—a major shift from the buyer-paying model that existed before murphyllp.com. -
Controlling Interest Transfers now taxed higher, too:
These fees also apply to sales of controlling interests in companies that own high-value commercial property. Again, it’s the seller who pays, with the same tiered rates hunton.com+2murphyllp.com+2nj.gov+2.
Understanding the Grace Period: Timing Is Everything
If your contract was signed before July 10, 2025, and the deed is recorded by November 15, 2025, you may be eligible to revert to the old 1% rate—or get a refund on the excess paid. Smart timing and paperwork are critical here njrealtor.com+2hunton.com+2murphyllp.com+2.
Why This Matters to You
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Cost planning: Sellers of high-end homes (especially those north of $2 million) could face substantially higher transfer expenses—budget accordingly.
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Strategic contracting: Locking in a deal before July 10—and ensuring recording by mid-November—can save tens of thousands of dollars.
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Negotiation leverage: Since sellers now pay, contract negotiations regarding who covers these fees are more important than ever.
Our Final Takeaway
As of July 10, 2025, New Jersey sellers pay all realty transfer fees on properties over $1M—and it gets steeper the more your home sells for. For deals underway now, pay close attention to signing and recording dates—you may qualify for significant savings. We're here to help you navigate this change smoothly. Whether you’re buying, selling, or renegotiating, let’s talk timing, strategy, and how to leverage this new structure to your best advantage.
