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New Jersey Bargain and Sale Deed

In New Jersey, real property can be transferred from one party to another by executing a bargain and sale deed with covenant as to grantor's acts.

Bargain and sale deeds are generally used to transfer the grantor's entire interest in the property at the time of conveyance without any warranties of title. Unlike quitclaim deeds, bargain and sale deeds imply that the grantor holds an actual interest in the property being conveyed. Additionally, in New Jersey, a bargain and sale deed with covenant as to grantor's acts includes a promise from the grantor that he or she has not encumbered the property (N.J.S.A. 46:4-6).

A lawful bargain and sale deed with covenant as to grantor's acts deed includes the grantor's full name, mailing address, and marital status, and the grantee's full name, mailing address, marital status, and vesting. Vesting describes how the grantee holds title to the property. Generally, real property is owned in either sole ownership or in co-ownership.

For New Jersey residential property, the primary methods for holding title are tenancy in common, joint tenancy, and tenancy by entirety. A conveyance to two or more unmarried persons is presumed to create a tenancy in common, unless otherwise stated. A conveyance to a married couple creates a tenancy by entirety, unless otherwise stated (N.J.S.A. 46:3-17, 46:3-17.3).

As with any conveyance of realty, a bargain and sale deed with covenant as to grantor's acts requires a complete legal description of the parcel. Recite the prior deed reference to maintain a clear chain of title, and detail any restrictions associated with the property. The deed must meet all state and county standards of form and content for recorded documents.

Sign the deed in the presence of a notary public or other authorized official. For a valid transfer, record the deed at the recording office in the county where the property is located. Contact the same office to confirm accepted forms of payment.

Deeds transferring new construction as the term is defined in N.J.S.A. 46:15-5(1)(g) should contain the words "NEW CONSTRUCTION" in all caps on the first page (N.J.S.A. 46:15-6(2)(c)).

If the conveyance is exempt from transfer taxes, explain why on the face of the deed. See N.J.S.A. 46:15-10 for transfer tax exemptions. A completed Affidavit of Consideration is required for deeds claiming exemption or partial exemption.

The Gross Income Tax Form (GIT/REP) must be recorded with a deed when transferring real property in New Jersey. Ask the local assessor or recording office for help choosing the correct version of the GIT/REP.

This article is provided for informational purposes only and is not a substitute for legal advice. Contact an attorney with questions about using bargain and sale deeds, or for any other issues related to transfers of real property in New Jersey.

Deeds.com New Jersey Bargain and Sale Deed Forms Have Been Updated as Recently as Friday September 20, 2019

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New Jersey Bargain and Sale Deed Form