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Does Transfer Tax apply for constructing a new home on existing property? Ower remains same!

I own the property (home) for last six plus years. It has been rented out so far. Now I'm planning to costruct a new home on this lot (demolish the old one that is rented out). Therefore the owner is not going to change (i was the owner and will remain as owner). Do i have to pay the transfer tax? Property is in New Jersey.

Thanks,
Nimesh
  • October 25 2012 - Wayne
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Answers (2)

Best Answer

You are not selling your property so the answer is no.  It is remaining in your name.  You only pay transfer taxes when you sell your property.  If you are going to construcct a new house and sell it then you will have to pay transfer tax and only then.  Hope this helps
  • October 25 2012
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Profile picture for Frieda Triebel
Hi, Nemesh,

The Real Estate Transfer Tax applies when a home or property is sold, and thus a deed is transferred to a new owner.

Good luck with the reconstruction of your home.
  • October 25 2012
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