GIT/REP-3 Page 2
(8-19) Seller’s Residency Certication/Exemption Instructions
Individuals, estates, trusts, or any other entity selling or transferring property in New Jersey must complete this form if they are not
subject to the Gross Income Tax estimated payment requirements under N.J.S.A. 54A:8-9. A nonresident seller is required to make
an estimated Income Tax payment if none of the Seller’s Assurances apply.
Name(s). Enter the name of the seller. If there is more than one seller, each must complete a separate form unless they are a
married/civil union couple that les their Income Tax returns jointly.
Address. Enter the seller’s primary residence or place of business. Do not use the address of the property being sold. The seller is
considered to be a nonresident unless a new residence (permanent place of abode, domicile) has been established in New Jersey
and the new residence is listed here. Part-year residents are considered nonresidents.
Property Information. Enter the information listed on the deed of the property being sold. Enter the seller’s percentage of
ownership, the total consideration for the transaction, the seller’s share of that consideration, and the closing date.
Consideration. “Consideration” means, in the case of any deed, the actual amount of money and the monetary value of any other
thing of value constituting the entire compensation paid or to be paid for the transfer of title to the lands, tenements, or other realty,
including the remaining amount of any prior mortgage to which the transfer is subject or which is assumed and agreed to be paid
by the grantee and any other lien or encumbrance not paid, satised, or removed in connection with the transfer of title. If there is
more than one owner, indicate the seller’s portion of the total consideration received. If the total consideration for the property is
$1,000 or less, the seller must check box 6 under Seller’s Assurances.
Seller’s Assurances. Check the appropriate box(es). If one or more of the Seller’s Assurances applies, the seller is not required to
make an estimated Income Tax payment at this time.
Any seller claiming the principal residence exemption (box 2) must also be claiming an income/gain exclusion for the property being
sold on their federal income tax return (26 U.S. Code section 121).
1031 like-kind exchange. A nonresident who completes the GIT/REP-3 and claims exemption for a 1031 transaction (box 7) must
show the value of the like-kind property received. If the transaction includes non-like kind property (i.e., money, stocks, etc.), the
seller must also compete the GIT/REP-1, Nonresident Seller’s Tax Declaration, show the greater of the consideration or the fair
market value of the non-like kind property received, and remit an estimated tax payment of 2% of that amount. If the transaction is
a deferred like-kind exchange and the seller receives non-like kind property, the qualied intermediary (QI) must remit an estimated
tax payment of 2% of the greater of the consideration or the fair market value of any non-like kind property when the 1031 transac-
tion is completed. If the deferred exchange is voided, the QI must complete a GIT/REP-1, Nonresident Seller’s Tax Declaration, and
remit an estimated tax payment of 2% of the total consideration with an NJ-1040-ES Voucher.
Example: Mr. Smith is a nonresident of New Jersey who exchanges rental property A with a fair market value of $1.2 million for
rental property B with a fair market value of $1.0 million and receives $200,000 in cash (non-like kind property). An estimated tax
payment is required on the $200,000 non-like kind property for nonresidents.
PROPERTY A $1,200,000
PROPERTY B $1,000,000
CASH $ $ 200,000
Estimated tax payment for GIT/REP-1 $ 4,000
Box 16 is only for sellers and their spouses/civil union partners if the sellers and/or their spouses/civil union partners are members
of the U.S. Armed Forces. Note: Stolen Valor is a crime in New Jersey pursuant to N.J.S.A. 38A:14-5.
Signature. The seller must sign and date the Seller’s Declaration. If the seller has appointed a representative who is signing the
Seller’s Declaration on their behalf, either the Power of Attorney executed by the seller must have been previously recorded or
recorded with the deed to which this form is attached, or a letter signed by the seller granting authority to the representative to sign
this form must be attached.
The seller must give the completed GIT/REP-3 to the settlement agent at closing. The county clerk will attach this form to the deed
when recording it. If the form is not completed in its entirety, or if the settlement agent does not submit the original form with the
deed, the county clerk will not record the deed.