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 must complete as the seller in a real estate transaction to declare the true consideration (purchase price and value) received for your property. This document serves as an official record for tax authorities and helps ensure transparency in property transfers throughout 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 this document to calculate transfer taxes, update property assessments, and maintain accurate public records. You'll typically complete this affidavit at closing, before the deed can be officially recorded. Title companies or closing agents often require the completed form as part of the standard closing package, especially when the sale involves significant consideration 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 the seller's 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 consideration amount, the Realty Transfer Fee due, and boxes to elect partial exemptions such as those for senior citizens, low-income sellers, or new construction. A notary section confirms the seller 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.

Seller RTF-1 vs buyer RTF-1EE

New Jersey uses two related forms, and it helps to know which one you're filing. The Affidavit of Consideration for Use by Seller (RTF-1) is completed by the seller, while the Affidavit of Consideration for Use by Buyer (RTF-1EE) is completed by the buyer 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 fee is tied to the declared consideration, so the number you state directly drives what the recording office charges at filing. New Jersey's Realty Transfer Fee, for example, is assessed on the full stated consideration on a graduated scale, with a supplemental fee on higher-value transactions and a mansion tax on qualifying residential sales. Reporting the true consideration on the RTF-1 is what lets the county apply the correct fee and any exemption. If your transfer qualifies for a full or partial exemption, the affidavit is the document that records the basis for it.

Key legal considerations

The most critical aspect of this affidavit is the accuracy of your consideration statement. You must declare the full and actual consideration paid, including cash, assumed mortgages, 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 also want to review a partnership agreement to confirm how proceeds are allocated. Understating the consideration 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.

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.

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 comply with 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 component 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 buyer.