New Jersey Real Estate Practice Exam Practice Question

In New Jersey, the realty transfer fee appears on the closing statement as a:

Correct Answer: A

Rationale: In New Jersey, the realty transfer fee is a cost incurred when property changes hands, and it is typically charged to the seller. Therefore, it appears as a debit to the seller on the closing statement, reflecting the amount they owe at closing.

Option B, a debit to the buyer, is incorrect since the buyer typically does not pay this fee. Option C, a credit to the seller, is also wrong because credits reduce what is owed, while the transfer fee increases the seller's costs. Lastly, option D, a credit to the buyer, is inaccurate as this fee does not benefit the buyer directly and is not recorded as a credit.

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