Affidavit Of Consideration For Use By Seller Template for the United States

An Affidavit of Consideration for Use by Seller is a sworn legal document that you complete as the seller in a real estate transaction to declare the true consideration (purchase price and value) received for your property. It serves as an official record for tax authorities and supports transparency in property transfers across the United States. In New Jersey it takes the standardized form known as the RTF-1, filed alongside the deed to calculate the Realty Transfer Fee, and other states use comparable seller affidavits under their own recording rules.

When do you need this document?

You need this affidavit whenever you sell real estate and the transaction requires recording with your county clerk or recorder's office. Most states mandate it to calculate transfer taxes, update property assessments, and maintain accurate public records. You'll typically complete it at closing, before the deed can be officially recorded. Title companies, closing agents, or the attorney handling the settlement often require the completed form as part of the standard closing package, especially when the sale involves significant value or when local jurisdictions have specific reporting requirements for property transfers.

What does the form contain?

The content of the affidavit is organized so a recording office can verify it quickly. It captures your full legal name and address, a complete legal description of the property, the consideration received, and any exemption being claimed. In New Jersey the RTF-1 sets out the amount, the fee due, and boxes to elect partial exemptions such as those for senior citizens, low-income sellers, or new construction. The affidavit title identifies the form as being for use by the grantor. A notary section confirms you signed under oath. Because the affidavit becomes part of the public record, the information you provide is accessible to future buyers, assessors, and other interested parties.

Who files the seller form versus the buyer form?

New Jersey uses two related forms, and it helps to know which applies to you. The Affidavit of Consideration for Use by Seller (RTF-1) is completed by the grantor, while the Affidavit of Consideration for Use by Buyer (RTF-1EE) is completed by the grantee for transactions such as a sale of real property for over $1,000,000 that triggers the mansion tax. Both are filed with the county recording office through the Division of Taxation framework.

How is the transfer fee calculated?

The amount owed is tied to the declared consideration, so the number you state directly drives what the recording office charges at filing. In New Jersey the fee is assessed on the full stated amount on a graduated scale, with a supplemental charge on higher-value transactions and a mansion tax on qualifying residential sales. Reporting the true figure on the form is what lets the county apply the correct rate and any exemption. If your transfer qualifies for a full or partial exemption, the affidavit is the document that records the basis for it.

How does an assumed mortgage or lien affect the consideration?

Consideration is more than the cash that changes hands. If the buyer takes over an existing mortgage or the balance of a loan against the property, that assumed mortgage counts toward the total you must declare. A lien remaining on the property, such as an unpaid tax lien or judgment lien that is assumed, is treated the same way and forms part of the reported amount. The same applies to other valuable consideration such as personal property transferred with the sale. Leaving an assumed mortgage or lien out of the figure understates the true value and can affect both the amount due and the accuracy of the public record.

Key legal considerations

The most critical aspect of this affidavit is the accuracy of your consideration statement. You must declare the full and actual amount paid, including cash, assumed mortgages, liens, personal property, and any other valuable consideration. For a fuller explanation of how value is measured, see the definition of sale consideration, and if your transfer involves multiple owners you may want to confirm how proceeds are allocated before signing. Understating the amount to reduce transfer taxes constitutes fraud and can result in severe penalties, including fines, tax assessments, and potential criminal charges. Your verification statement creates a legal obligation under penalty of perjury, meaning false statements can lead to prosecution. The document must include a complete legal description of the property, your full legal name and address, and proper notarization to be legally valid.

Does a partnership or commercial transfer change the form?

Yes. When the grantor is a partnership, LLC, corporation, or other entity rather than an individual, the New Jersey RTF-1 asks for the corporate or entity grantor details and the form must be signed by an authorized officer or partner. Commercial and multi-party transfers can also involve non-contractual transfers, intercompany conveyances, or assignments that carry their own consideration terms, so the reporting fields and any exemption basis should reflect how the deal is actually structured. For commercial real estate deals it's common to attach supporting schedules that break down the consideration and any assumed debt.

Filing and recording the deed

Once the affidavit is completed and notarized, it's submitted with the deed to the county recording office so the transfer can be entered into the deed record. You can prepare and download the form as a PDF (or an editable RTF file) to bring to closing, where the title company or closing agent files it with the corporate or individual grantor details, the consideration, and any exemption election. Keep a copy for your own records, since the recorded affidavit and deed become part of the permanent public record.

Where to check the current New Jersey form and rules?

Recording requirements and fee schedules are reviewed periodically, so before a 2026 closing it's worth confirming you have the current version of the form. A quick check of the New Jersey Division of Taxation resources will show the latest version, the rate table, and guidance on exemptions. Your county recording office and title company can also confirm which supporting affidavits they need for your specific New Jersey affidavit of consideration filing. For related closing paperwork, you can browse the GenieAI template library to find other documents that commonly sit alongside a deed transfer.

Does this affidavit vary by state?

Yes. The RTF-1 is New Jersey's standardized form, but other states run their own versions of a seller's consideration or transfer-tax affidavit under local recording rules. Some states collect a documentary stamp tax rather than a realty transfer fee, and thresholds, exemptions, and notary requirements differ. Checking your own state's recording office guidance, or a title company's local closing checklist, confirms which form and which reporting fields apply to your transaction.

Legal requirements in United States

Federal laws including the Internal Revenue Code require accurate reporting of property sale consideration for tax purposes, while the Foreign Investment in Real Property Tax Act (FIRPTA) may impose additional requirements if you're a foreign person. State-specific real estate laws vary significantly regarding transfer tax calculations, exemptions, and reporting thresholds, so you must meet your particular state's requirements. Most states require notarization according to their specific notary laws, which may include traditional in-person notarization or remote online notarization where permitted. The Statute of Frauds in your state mandates that real estate transactions include written documentation with proper signatures, making this affidavit an essential part of your property transfer. Local property tax laws also rely on your consideration declaration to update assessments and calculate future tax obligations, while title laws ensure that your affidavit supports clear title transfer to the new owner.