Property Ownership
A NJ 'land trust' (not to be confused with a conservation land trust) created for privacy in property ownership allows the beneficial owner to:
AAvoid all property taxes
BHold real estate anonymously through a trust, with the trustee holding legal title while the beneficiary's identity remains private✓ Correct
CTransfer property without recording a deed
DAvoid the NJ Realty Transfer Fee
Explanation
An Illinois-style or privacy land trust holds legal title to real property in the trustee's name, while the beneficiary (actual owner) maintains equitable interest. This can provide privacy from public records, though tax and RTF obligations still apply.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Math Concepts
State-Specific Concepts
Transfer Tax
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