New Jersey real estate attorney Christine Matus (https://matuslaw.com/who-pays-the-mansion-tax-in-nj/), of The Matus Law Group, has recently published an informative article titled 'Who Pays the Mansion Tax in NJ?'. This piece sheds light on the implications of the mansion tax in New Jersey, especially for those purchasing properties valued at over $1 million.
Christine Matus, a seasoned New Jersey real estate attorney, elaborates on the tax's history, its application, and exemptions. She emphasizes the role of a real estate attorney in guiding prospective buyers through the complexities of this tax, which can often come as an unexpected burden.
In her article, the New Jersey real estate attorney explains that the mansion tax, introduced in 2004, applies an additional fee of one percent of the sales price for homes with sales prices of $1 million or more. "The mansion tax is typically paid by the buyer at closing, unless otherwise agreed upon by the buyer and seller," says Matus. In addition to residential properties, the tax also applies to certain commercial class 2 and 4A properties.
The mansion tax applies to a wide variety of property types. Residential property, regular farm property, cooperative units, and commercial properties all fall under its purview. However, the tax is not applicable universally. Matus explains, "Vacant lands, farm properties without an existing residence, industrial properties, apartment buildings with five or more units, and properties owned by charitable organizations, among others, are exempt from the mansion tax in New Jersey."
The New Jersey real estate attorney also provides a valuable tip for prospective buyers. "As a buyer, it is important to understand whether the purchase of a new property will be subject to the mansion tax. While the buyer typically pays the mansion tax, they may mitigate the cost by making provisions in the contract agreeing to share them or shift the responsibility to the seller."
Matus stresses on the importance of having a real estate attorney to navigate these complex issues. "While it is not required to have a real estate attorney when dealing with real estate transactions in New Jersey, having a skilled lawyer can help protect real estate buyers and sellers from the potential pitfalls of large financial decisions involved in such transactions," Matus states.
With the escalating home values, $1 million properties are becoming more common than they were nearly two decades ago. With this change in the real estate landscape, the mansion tax has become a relevant concern for more and more buyers. Those considering a property purchase of this magnitude in New Jersey would greatly benefit from understanding the implications of the mansion tax.
For those grappling with the intricacies of the mansion tax, or simply seeking guidance on property-related legal matters, The Matus Law Group, led by Christine Matus, stands ready to assist.
About The Matus Law Group:
The Matus Law Group has a long-standing commitment to providing personalized and effective legal solutions to individuals and families. With an in-depth knowledge of real estate laws and a dedication to client service, the firm has built a reputation for helping clients navigate complex legal issues such as the mansion tax. The Matus Law Group is known for putting clients' needs first, providing legal advice tailored to meet individual circumstances, and striving to ensure a smooth transaction for every property deal.
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