New Jersey Warranty Deed

Introduction

Key Things to Know

1. 1

   A New Jersey warranty deed uses the words warrant generally (N.J.S.A. 46:4-7) to promise to forever warrant and defend against all persons whomsoever. The state's everyday bargain and sale deed with covenant as to grantor's acts is only a special warranty.

2. 2

   New Jersey codifies the warranty words. A covenant that the grantor will warrant generally the property conveyed has the effect of a promise to forever warrant and defend the property against the claims and demands of all persons whomsoever (N.J.S.A. 46:4-7). That is the general warranty.

3. 3

   A special or limited warranty uses warrant specially and defends only against claims arising by, through, or under the grantor (N.J.S.A. 46:4-8). New Jersey does not use a grant deed; its standard instrument is the bargain and sale deed with covenant as to grantor's acts, which is a special warranty.

4. 4

   You record the signed, acknowledged deed with the county recording officer (the register of deeds and mortgages in the counties that have one, otherwise the county clerk) of the county where the property is located. New Jersey follows a race-notice priority rule, so recording promptly protects you against a later purchaser (N.J.S.A. 46:26A-12).

5. 5

   The grantor's signature must be acknowledged before an authorized officer, such as a notary, before the deed can be recorded (N.J.S.A. 46:14-2.1). New Jersey does not require subscribing witnesses for an acknowledged deed; a witness is only used under the alternative proof method.

6. 6

   New Jersey charges a Realty Transfer Fee that begins at 2.00 dollars for each 500 dollars of consideration and rises in brackets, and a statement of the true consideration must be made on the deed or in an appended affidavit (Form RTF-1) (N.J.S.A. 46:15-6). A higher schedule and a 1 percent additional fee can apply to larger transfers.

7. 7

   To record, the deed itself must be in English, bear each signature with the name printed beneath it, reference the lot and block number of the property, and state the grantee mailing address (N.J.S.A. 46:26A-3). A conveyance of the principal marital residence is taken subject to a non-owner spouse's right of joint possession unless that spouse releases it (N.J.S.A. 3B:28-3), so the spouse commonly signs.

New Jersey Requirements for Warranty Deed

• Title Guarantee and Codified Warranty Words

  A warranty deed guarantees clear title and defends the buyer against claims. New Jersey codifies the warranty words: a covenant that the grantor will warrant generally the property conveyed has the same effect as a promise to forever warrant and defend the property against the claims and demands of all persons whomsoever (N.J.S.A. 46:4-7). That is the general warranty, the strongest title protection.

• General vs Special Warranty; Bargain and Sale

  A special or limited warranty uses warrant specially and defends only against claims arising by, through, or under the grantor (N.J.S.A. 46:4-8). New Jersey does not use a grant deed; its standard instrument is the bargain and sale deed with covenant as to grantor's acts, a special warranty. The general warranty deed (N.J.S.A. 46:4-7) is available when the buyer wants full protection.

• Record with the County Recording Officer

  Record the signed, acknowledged deed with the county recording officer of the county where the real property is located; this is the register of deeds and mortgages in the counties that keep one and the county clerk in the others. New Jersey follows a race-notice priority rule, so a conveyance recorded first generally prevails over a later good-faith purchaser (N.J.S.A. 46:26A-12). Record promptly to protect your interest.

• Acknowledgment Before an Officer, No Witnesses

  Before recording, the grantor signature must be acknowledged before an authorized officer such as a notary (N.J.S.A. 46:14-2.1). New Jersey does not require subscribing witnesses for an acknowledged deed; a witness is only used under the alternative proof method when the maker does not personally acknowledge. A proper acknowledgment is the recording path.

• Realty Transfer Fee and Affidavit of Consideration

  New Jersey charges a Realty Transfer Fee that begins at 2.00 dollars for each 500 dollars of consideration and rises in brackets, with a steeper schedule and a 1 percent additional fee on certain transfers above 1,000,000 dollars. A statement of the true consideration must appear on the deed or in an appended Affidavit of Consideration, Form RTF-1 (N.J.S.A. 46:15-6). Listed exemptions require the proper affidavit.

• Legal Description, Lot and Block, Grantee Address

  To record, the deed must be in English, bear each signature with the name printed beneath it, reference the lot and block number of the property conveyed, and state the mailing address of the grantee (N.J.S.A. 46:26A-3). Include the full legal description, not just the street address. Errors in the legal description or in how the grantee takes title are a common and costly source of later problems, so confirm both against the current deed.

• Spousal Right of Joint Possession

  New Jersey abolished dower and curtesy for property acquired on or after May 28, 1980, so there is no classic spousal-joinder requirement to validly convey a solely owned parcel. However, a conveyance of the principal marital residence is taken subject to the non-owner spouse right of joint possession unless that spouse releases it (N.J.S.A. 3B:28-3), so the spouse commonly signs the deed to release the right.

• Choosing the Instrument

  Choose the deed to match the protection intended. A general warranty deed warrants title against all persons whomsoever, including claims that predate the grantor (N.J.S.A. 46:4-7). A bargain and sale deed with covenant as to grantor acts, the standard New Jersey instrument, warrants only against claims through the grantor (N.J.S.A. 46:4-8). A quitclaim gives no covenants (N.J.S.A. 46:5-1). The reason for the transfer usually points to the right one.