Model the Overlap on Net Proceeds, Not Sale Price
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
The number that matters in a buy-before-you-sell plan is not what the house sells for. It is what reaches you afterwards, and New Jersey takes two bites on the way.
Why net proceeds is the number
Every buy-before-you-sell structure eventually settles against the departing home's sale.
- A bridge loan is repaid in full from the proceeds.
- A second mortgage or equity line taken for the down payment is paid off at that closing.
- A recast on the new mortgage is funded by applying proceeds to principal, so the size of the payment reduction tracks the size of the proceeds.
Which means the planning number is net, not gross. Anything that comes off the top reduces what the structure has to work with.
The Realty Transfer Fee
New Jersey's standard Realty Transfer Fee schedule, for total consideration over $350,000, runs:
| Consideration over | but not over | Rate per $500 |
|---|---|---|
| $0 | $150,000 | $1.40 |
| $150,000 | $550,000 | $2.15 |
| $550,000 | $850,000 | $2.65 |
| $850,000 | $1,000,000 | $3.15 |
| $1,000,000 | — | $3.40 |
The seller is statutorily responsible. Partial exemptions exist and are claimed on Form RTF-1, Affidavit of Consideration for Use by Seller; whether one reaches your facts is a question for your closing attorney.
And the Graduated Percent Fee on top
Above $1,000,000 of consideration, the Graduated Percent Fee stacks on the Realty Transfer Fee. It begins at 1% of total consideration and rises through 2%, 2.5%, 3% and 3.5% by band. The seller is statutorily responsible for that too.
So a New Jersey seller crossing a million dollars is carrying both, and a move-up plan built on the older assumption that the buyer covers the mansion tax will be short. See the seller-pays page.
How to model it
Work the departing home in this order, and use conservative figures:
- Expected sale price.
- Less the Realty Transfer Fee on the schedule above.
- Less the Graduated Percent Fee if consideration exceeds $1,000,000.
- Less the existing mortgage payoff.
- Less any second mortgage or equity line taken to fund the down payment.
- Less ordinary costs of sale.
What remains is what funds the recast, or what is left over after the bridge is retired. If that number is thinner than the plan assumed, the answer is usually a different structure rather than a bigger loan. See the structures page and the calculator.
The structure with no transfer fees at all
Keeping the departing home as a rental records no deed, so neither the Realty Transfer Fee nor the Graduated Percent Fee arises. There is also no payoff and no proceeds, so the structure has to stand on the rental offset and on reserves instead.
That trade is worth running properly in New Jersey, where the seller-side fees are larger than in most states. See the rental conversion page and qualifying without selling.
Frequently asked questions
What is New Jersey's Realty Transfer Fee schedule?
For total consideration over $350,000: $1.40 per $500 up to $150,000; $2.15 per $500 from $150,000 to $550,000; $2.65 per $500 from $550,000 to $850,000; $3.15 per $500 from $850,000 to $1,000,000; and $3.40 per $500 above $1,000,000. The seller is statutorily responsible.
Do both New Jersey transfer fees apply on a sale over $1 million?
Yes. The Realty Transfer Fee applies on its graduated per-$500 schedule, and the Graduated Percent Fee stacks on top starting at 1% of total consideration. The New Jersey Division of Taxation states the seller is statutorily responsible for both.
Why should I plan my move-up on net proceeds?
Because every buy-before-you-sell structure settles against the sale. A bridge loan is repaid from proceeds, a second mortgage is paid off at that closing, and a recast is funded by applying proceeds to principal. Fees that come off the top reduce what the structure has to work with.
Does keeping my New Jersey home as a rental avoid the transfer fees?
Yes, because no deed is recorded, so neither the Realty Transfer Fee nor the Graduated Percent Fee arises. There is also no payoff and no proceeds, so that structure has to stand on the rental offset under Fannie Mae B3-3.8-05 and on reserves.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. New Jersey's Realty Transfer Fee and Graduated Percent Fee are administered by the New Jersey Division of Taxation and exemptions depend on your facts; your closing attorney, your CPA, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.