New Jersey Closing Costs Guide 2026
This New Jersey closing costs guide covers what buyers and sellers pay at closing in New Jersey — the Realty Transfer Fee, the Mansion Tax on sales over $1 million, attorney fees, title insurance, and tips for reducing your total cash to close.
Buyer Closing Costs in New Jersey
New Jersey buyers are not responsible for the state’s Realty Transfer Fee or Mansion Tax — both fall on the seller by statute. Buyer costs in New Jersey are generally comparable to other attorney-review states.
| Fee | Typical Amount |
|---|---|
| Loan origination fee | 0–1% of loan |
| Attorney fee (buyer’s attorney) | ~$1,000–$2,500 flat fee |
| Lender’s title insurance | Based on loan amount |
| Owner’s title insurance | Based on purchase price (negotiable) |
| Appraisal | Paid upfront or at closing |
| Home inspection | Paid before closing |
| Prepaid interest | Per diem from closing to month-end |
| Homeowner’s insurance (prepaid) | First year premium |
| Property tax impound | 2–6 months depending on lender and municipality |
| Recording fee | County-set |
These are estimates only. Actual closing costs depend on your lender, title company, attorney, loan type, closing date, and what’s negotiated in your purchase contract. Always request a Loan Estimate from your lender within 3 business days of application, and review your Closing Disclosure carefully at least 3 days before closing.
Seller Closing Costs & the Realty Transfer Fee
New Jersey imposes a Realty Transfer Fee (RTF) on the seller for recording the deed. The fee is calculated per $500 of consideration and increases for higher sale prices.
| Standard Transactions — Total Consideration Not Over $350,000 | Rate per $500 |
|---|---|
| $0 – $150,000 | $2.00 |
| $150,000 – $200,000 | $3.35 |
| $200,000 – $350,000 | $3.90 |
| Standard Transactions — Total Consideration Over $350,000 | Rate per $500 |
|---|---|
| $0 – $150,000 | $2.90 |
| $150,000 – $200,000 | $4.25 |
| $200,000 – $550,000 | $4.80 |
| $550,000 – $850,000 | $5.30 |
| $850,000 – $1,000,000 | $5.80 |
| Over $1,000,000 | $6.05 |
| Senior / Blind / Disabled or Low-Mod Income Housing — Not Over $350,000 | Rate per $500 |
|---|---|
| $0 – $150,000 | $0.50 |
| $150,000 – $350,000 | $1.25 |
| Senior / Blind / Disabled or Low-Mod Income Housing — Over $350,000 | 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 |
| Over $1,000,000 | $3.40 |
An Affidavit of Consideration for Use by Seller (Form RTF-1) must be filed with any deed claiming a full or partial RTF exemption. Full details are available at the NJ Division of Taxation’s Realty Transfer Fee page.
The New Jersey Mansion Tax (Graduated Percent Fee)
As a supplemental fee to the RTF, New Jersey imposes a Graduated Percent Fee — commonly called the Mansion Tax — on deeds where the consideration exceeds $1,000,000. This applies to Class 2 residential, certain farm, Class 4A commercial (non-industrial/apartment), and Class 4C cooperative unit transfers. The seller is statutorily responsible for this fee.
| Total Consideration | Rate |
|---|---|
| Over $1,000,000 up to $2,000,000 | 1% |
| Over $2,000,000 up to $2,500,000 | 2% |
| Over $2,500,000 up to $3,000,000 | 2.5% |
| Over $3,000,000 up to $3,500,000 | 3% |
| Over $3,500,000 | 3.5% |
Certain exemptions apply and must be documented on Form RTF-1EE, annexed to the deed. See the NJ Division of Taxation for current exemption details.
Title Insurance in New Jersey
| Policy Type | Who Typically Pays | Purpose |
|---|---|---|
| Owner’s title insurance | Negotiable — varies by contract | Protects buyer from title defects, liens, encumbrances |
| Lender’s title insurance | Buyer | Protects the lender’s interest in the property |
Because customs vary by market and county, always confirm with your title company and attorney who is expected to pay for the owner’s title policy in your specific transaction.
The Attorney-Review Closing Process in New Jersey
Unlike Arizona’s escrow-based model, New Jersey is an attorney-review state. Once an offer is accepted, both buyer and seller attorneys typically have a standard 3-business-day attorney review period to approve, disapprove, or propose changes to the contract.
- Attorney review period: Typically 3 business days after an accepted offer
- Title search and survey: Ordered during the attorney review and mortgage contingency period
- Signing: Buyer, seller, and their attorneys typically coordinate closing, which may be conducted in person or via mail-away/remote signing
- Funding and recording: After documents are signed and funds confirmed, the lender funds the loan and the deed and mortgage are recorded with the county clerk
How to Reduce Your New Jersey Closing Costs
- Negotiate seller concessions: Ask the seller to pay some or all buyer closing costs, subject to loan-type limits (FHA/VA/conventional caps)
- Ask about NJHMFA assistance: NJHMFA’s Down Payment Assistance Program can cover down payment and some closing costs for eligible buyers
- Compare attorney fees: New Jersey attorney fees for closings are often flat-fee based and can vary between firms — ask for a quote upfront
- Compare lenders: Loan origination fees vary significantly; getting 3 Loan Estimates from different lenders is one of the most effective ways to reduce costs. This is where working with an experienced Brokered Mortgage Advisor can help you save time and money throughout your transaction, by shopping rates and costs with several different lenders before your loan package is submitted.
- Close near month-end: Minimizes prepaid daily interest charged at closing
