Sellers Residency Certificate Form PDF Details

The Seller's Residency Certification/Exemption form, identified by the GIT/REP-3 code, serves an important role in real estate transactions within New Jersey. This document, necessitated by C.55, P.L. 2004, provides a structured process for sellers to declare their residency status and confirm their compliance with state tax laws concerning the sale or transfer of property. It explicitly requires sellers to furnish personal and property specifics, including names, addresses, and details about the property being sold, such as its description, ownership percentage, and the closing date. Furthermore, the form presents a series of assurances that sellers must address, verifying their residency status and eligibility for specific tax exemptions or responsibilities. These assurances encompass a wide range of situations, from affirmations of the property being a principal residence to exceptions like transferring property without additional consideration or in connection with certain legal or financial circumstances. The form mandates thorough completion and truthful declarations, as it must be furnished to the buyer or the buyer's attorney at closing and is integral to the recording process by the county clerk. Failure to accurately complete or submit this form can impede the deed recording process, underscoring the form's critical role in property transactions in New Jersey. Its detailed instructions aim to ensure clarity and compliance, facilitating a smoother transaction process and adherence to state tax regulations.

QuestionAnswer
Form NameSellers Residency Certificate Form
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other namesresidency certification form, nj sellers residency certification, seller's residency certification nj, seller's residency

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GIT/REP-3

(5-12)

State of New Jersey

SELLER’S RESIDENCYCERTIFICATION/EXEMPTION

(C.55, P.L. 2004)

(Please Print or Type)

SELLER(S) INFORMATION (See Instructions, Page 2)

Names(s)

Current Resident Address:

Street:

City, Town, Post OfficeStateZip Code

PROPERTYINFORMATION (Brief Property Description)

Block(s)

Lot(s)

 

Qualifier

 

 

 

 

Street Address:

 

 

 

 

 

 

 

City, Town, Post Office

 

State

Zip Code

 

 

 

 

Seller’s Percentage of Ownership

Consideration

 

Closing Date

SELLER ASSURANCES (Check the Appropriate Box) (Boxes 2 through 10 apply to Residents and Non-residents)

1.I am a resident taxpayer (individual, estate, or trust) of the State of New Jersey pursuant to N.J.S.A. 54A:1-1 et seq. and will file a resident gross income tax return and pay any applicable taxes on any gain or income from the disposition of this property.

2.The real property being sold or transferred is used exclusively as my principal residence within the meaning of section 121 of the federal Internal Revenue Code of 1986, 26 U.S.C. s. 121.

3.I am a mortgagor conveying the mortgaged property to a mortgagee in foreclosure or in a transfer in lieu of foreclosure with no additional consideration.

4.Seller, transferor or transferee is an agency or authority of the United States of America, an agency or authority of the State of New Jersey, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association, or a private mortgage insurance company.

5.Seller is not an individual, estate or trust and as such not required to make an estimated payment pursuant to N.J.S.A.54A:1-1 et seq.

6.The total consideration for the property is $1,000 or less and as such, the seller is not required to make an estimated payment pursuant to N.J.S.A. 54A:5-1-1 et seq.

7.The gain from the sale will not be recognized for Federal income tax purposes under I.R.C. Section 721, 1031, 1033 or is a cemetery plot. (CIRCLE THE APPLICABLE SECTION). If such section does not ultimately apply to this transaction, the seller acknowledges the obligation to file a New Jersey income tax return for the year of the sale (see instructions).

No non-like kind property received.

8.Transfer by an executor or administrator of a decedent to a devisee or heir to effect distribution of the decedent’s estate in accordance with the provisions of the decedent’s will or the intestate laws of this state.

9.The property being sold is subject to a short sale instituted by the mortgagee, whereby the seller has agreed not to receive any proceeds from the sale and the mortgagee will receive all proceeds paying off an agreed amount of the mortgage.

10.The deed being recorded is a deed dated prior to the effective date of P.L. 2004, c. 55 (August 1, 2004), and was previously unrecorded.

SELLER(S) DECLARATION

The undersigned understands that this declaration and its contents may be disclosed or provided to the New Jersey Division of Taxation and that any false statement contained herein could be punished by fine, imprisonment, or both. I furthermore declare that I have examined this declaration and, to the best of my knowledge and belief, it is true, correct and complete. By checking this box I certify that the Power of Attorney to represent the seller(s) has been previously recorded or is being recorded simultaneously with the deed to which this form is attached.

__________________________________________

_____________________________________________________________________

Date

Signature

 

(Seller) Please indicate if Power of Attorney or Attorney in Fact

__________________________________________

_____________________________________________________________________

Date

Signature

(Seller) Please indicate if Power of Attorney or Attorney in Fact

Seller's Residency Certification/Exemption Instructions

This form is to be completed by individuals, estates, trusts or any other entity selling or transferring property in New Jersey not subject to the Gross Income Tax estimated payment requirements under C55, P.L. 2004.

Name(s): Name of seller(s). If more than one owner separate forms must be used except for husband & wife/civil union couples that file their income tax returns jointly.

Address: Seller(s) primary residence or place of business. Do not use the address of the property being sold. Unless a new residence (permanent place of abode, domicile) has been established in New Jersey and said new residence is listed under seller(s) information, the seller(s) is considered a nonresident. Part-year residents will be considered nonresidents.

Nonresident seller(s) will be required to make an estimated Gross Income Tax payment if they do not meet any of the seller(s) assurances.

Property Information: Information as listed on deed of property being sold.

Percentage of Ownership: If there is more than one owner list sellers % of ownership.

Consideration: "Consideration" means in the case of any deed, the actual amount of money and the monetary value of any other thing of value constituting the entire compensation paid or to be paid for the transfer of title to the lands, tenements or other realty, including the remaining amount of any prior mortgage to which the transfer is subject or which is assumed and agreed to be paid by the grantee and any other lien or encumbrance not paid, satisfied or removed in connection with the transfer of title. If there is more than one owner, indicate seller's portion of total consideration received. If the total consideration for the property is $1,000 or less complete the Seller’s Residency Certification/ Exemption form GIT/REP-3 and check box 6 under Seller’s Assurances.

Seller Assurances: If you meet one of the eight criteria listed you are not required to make a tax payment at this time. Check which box is appropriate to your situation. Note that boxes 2 through 10 apply to residents and non-residents.

Persons claiming an exemption under block #2 must be claiming an income/gain exclusion on their federal return for the property being sold within the meaning of §.121 of the Internal Revenue Code of 1986.

Non-resident taxpayers claiming an exemption under box #7 for IRC section 1031 and receiving non-like kind property (i.e. money, stocks, etc.) as well as like kind property (i.e. real estate) with the exchange, must fill out the GIT/REP-1, NON-RESIDENT SELLER’S TAX DECLARATION form showing the non-like kind amount, and remit an estimated tax payment on the Fair Market Value of the consideration received for the non-like kind property. If no non-like property was received please check the block indicating such.

Athird party (the accommodation party) for a deferred like-kind exchange must remit an estimated tax payment of 2% of the fair market value of the consideration received for the non-like kind property on behalf of the taxpayer if non-like property is received when the 1031 transaction is completed or remit 2% of the total consideration if the 1031 transaction is voided. Payment must be sent directly to the State of New Jersey, Revenue Processing Center, P.O. Box 222, Trenton, NJ 08646-0222. Please fill out GIT/REP-1 and NJ-1040-ES Voucher.

Complete a GIT/REP-3 AND GIT/REP-1. The GIT/REP-3 should show the value of the like kind exchange. The GIT/REP-1 should show the Fair Market Value of or consideration received for the non-like kind property (whichever is more).

Example: Mr. Smith exchanges rental property Awith a fair market value of $1.2 million for rental property B with a fair market value of $1.0 million and receives $200,000 in cash (non-like kind property). An estimated tax payment is required to be withheld on the $200,000 in consideration of non-like kind property for non-residents.

PROPERTYA

$1,200.000

PROPERTY B

$1,000,000

CASH

$

200,000

Consideration for estimated tax

 

 

payment for GIT/REP-1

$

200,000

Signature: Seller(s) must sign and date the declaration. If the seller's representative is signing the declaration either (1) a Power of Attorney executed by the seller(s) to the representative must be previously recorded or recorded simultaneously with the deed to which this form is attached, or (2) a letter signed by the seller(s) granting authority to the representative to sign this form must be attached.

All information requested on this form must be completed. Failure to complete the form in its entirety will result in the deed not being recorded.

This form must be completed at the time of closing and given to the buyer or the buyer's attorney.

The buyer or buyer's attorney must submit the original Seller's Residency Certification/Exemption (GIT/REP-3) to the county clerk at the time of recording the deed. Failure to submit the Seller's Residency Certification/Exemption (GIT/REP-3) or Nonresident Seller's Tax Declaration (GIT/REP-1) or a Nonresident Seller's Tax Prepayment Receipt (GIT/REP-2) will result in the deed not being recorded.

The county clerk will attach this form to the deed when recording the deed.

Additional information regarding the Gross Income Tax estimated payment requirements on the sale of real estate can be found on the Division of Taxation’s web page at www.state.nj.us/treasury/taxation.

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nj residency certification completion process shown (portion 1)

2. Right after performing this step, head on to the next stage and enter all required details in all these blanks - I am a mortgagor conveying the, additional consideration, Seller transferor or transferee, Jersey the Federal National, Seller is not an individual, The total consideration for the, pursuant to NJSA A et seq, The gain from the sale will not, plot CIRCLE THE APPLICABLE SECTION, No nonlike kind property received, Transfer by an executor or, with the provisions of the, The property being sold is, proceeds from the sale and the, and The deed being recorded is a.

I am a mortgagor conveying the, Seller is not an individual, and The property being sold is inside nj residency certification

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Guidelines on how to complete nj residency certification portion 3

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