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SERVING ALL OF NEW JERSEY & PENNSYLVANIA
Attorney Prepared Deeds
for divorce, add or remove child, probate, trust, transfer to LLC, etc.
NO OFFICE VISITS ARE REQUIRED! We can, and very often do, handle everything remotely, meaning by phone, email, overnight mail, snail mail, or video conferencing. We do 80% of our business that way! Info@WoodendLaw.com
Did you know that there are different kinds of deeds? A deed is a legal document used to transfer ownership of real estate from one party to another. When signed by the seller and recorded with the County Clerk, it conveys legal title to the property from the present owner to the new owner, usually a buyer. It proves ownership, and is actually the only way to transfer and ownership interest in real estate to another person or entity. In that way, it is similar to the title to a car. In short, a deed is the document we use to convey title to real estate to another party. The deed, along with other incidental paperwork, gets recorded with the County Clerk and becomes part of the official land records. The two most common types of deeds are the “Bargain and Sale” or “Warrannty” deed, and the “Quit Claim deed” (mistakenly called a “quick-claim deed” or “Quick” deed). New Jersey calls it a Bargain and Sale deed, while Pennsylvania calls it a “warranty deed,” or a “special warranty deed.” Whatever its name, it is the deed we use in a typical, arms length real estate sale because the seller makes certain representations to the buyer, such as there being no other persons with a legal interest in the property, and there being no liens on the property.
A Quit Claim deed makes no such representations, and is sometimes referred to as a “dollar deed” because it is used within families, or for matrimonial or divorce situations, where the consideration is stated as being One Dollar ($1.00). Please do NOT use a quit claim deed when buying or selling real estate at its fair market value! Also, we strongly recommend getting title insurance even though the transaction may be between family members.
There are two parties to every deed: The “grantee” is the person acquiring the property. The “grantor” is the person conveying the property to the grantee. As the grantee, you should ask, “How should I and this other person hold title to the property.” There are three choices and are discussed in greater detail using the following link: How to Hold Title to Real Estate.
Each state has its own specific requirements for preparing and recording a deed. New Jersey and Pennsylvania are not exceptions. I cannot speak for other states, but in both Pennsylvania and New Jersey it is very tricky, and to make matters worse, each county does things a little bit differently. Sometimes, different clerks in the same county handle things a little bit differently. Be forewarned that a simple mistake in how the deed is worded could lead to significant problems down the road.
Our cost to prepare a typical deed from an individual to an individual is 650.00*. The typical cost to record NJ deeds with the County Clerk is ninety five dollars ($95.00) depending on the number of pages. The cost in Pennsylvania ranges from $100 to close $500 depending on the county. Fortunately, in Pennsylvania there is an on-line deed recording fee calculator available for public use. The grantor/seller may also have to pay a realty transfer fee (it is actually a tax) which is based on a sliding scale, calculated on the selling price or value of the property. For example, in New Jersey, the transfer fee on a $350,000 sale is approximately $2,105, $1,325 on a $250,000 sale, and $975 on a $200,000 sale. If you are 62 years of age or older and it is your primary residence, the fee on a $250,000 sale goes down to $400. If there is a mortgage on the property, the County Clerk may want you to pay the tax based on the balance on the mortgage, even if there is no money changing hands. The recording fees are consistent throughout the State of New Jersey. The on-line resource for New Jersey is NJ realty transfer fee . For Pennsylvania, I recommend sending us an email because it varies from county to county, even from town to town within the same county. Of course, if you use our services, you don’t have to worry about any of this because we would handle it all for you. Naturally, you would be responsible for paying the fees, but we would give you the amount to be paid.
The GOOD NEWS is that transfers between family members, or from an estate to the beneficiaries, or for a divorce are typically exempt from the realty transfer tax in both states, but not the recording fees.
* NOTE: These fees assume payment by check. Payment by credit card requires a surcharge of approximately 3.55% since that is what we are charged to process a credit card.
Both New Jersey Deeds and Pennsylvania deeds are recorded with the County recording office in the county in which the property is located. Recording fees and realty transfer fees must be paid at the time of recording and are periodically increased.
To get started, just call 609-654-5489. Better yet, sent us and email and we will respond that same or the next business day with the costs involved and what we need to get started. In ALL cases, we are going to need a copy of the current recorded deed, so you might as well start looking for it. If you cannot find it, you can go the County’s website and download a copy.
To emphasize a point made earlier, we can do all of this remotely, meaning by phone, email, overnight mail, snail mail, or video conferencing. We do 80% of our business that way! Info@WoodendLaw.com
