Budget raises real estate recording fees

I feel it is important to alert the public to a part of Gov. James McGreevey’s budget and related tax increases that applies to real estate transactions but has gone virtually unreported by the media.

Although the media has reported that the governor’s tax increases include an increase in the New Jersey realty transfer fee, a tax paid by the seller in a real estate transaction, nothing that I have seen in the media reports mentions the increase in recording fees.

Recording fees are paid by the buyer of a home or other piece of real estate, as well as by a homeowner who is refinancing a mortgage loan, when the documents involved in the transaction (most commonly the deed and mortgage) are recorded in the county’s recording office.

Coming on top of an increase last year in many of the same recording fees, the governor’s budget and tax package has nearly doubled many of these fees, effective immediately.

The cost for recording these documents has risen to $30 for the first page of each document and $10 for each additional page.

That means the average home purchaser, or homeowner who is refinancing his or her mortgage loan, will be paying an additional $100-$200 in recording fees (regardless of the size of the transaction), and he or she should be sure to budget for these increased costs when purchasing or refinancing.

Donald Katz

Co-chairman

Real Estate Committee

Middlesex County Bar Association