Affidavit of Consideration: Requirements, Filing & Forms across jurisdictions

Affidavit of Consideration

A real estate transfer tax declaration, also called an Affidavit of Consideration or a Statement of Value, is a sworn document that states the price or fair market value of a transferred property. It is a core compliance instrument used to calculate transfer taxes, verify market accuracy, and maintain integrity in land registration.

Each transfer of ownership requires an exact declaration of consideration. Authorities at the state, provincial, county, and municipal levels use this declaration to determine the correct tax and recording fee and to ensure that public records reflect the true transaction value.

The form and title of the affidavit differ across jurisdictions. In New Jersey, it is the Affidavit of Consideration (RTF-1). In Pennsylvania, it is the Statement of Value. In Ontario, it is the Land Transfer Tax Affidavit. Regardless of the form name, the legal duty remains the same: declare the actual economic value of the property under oath. An inaccurate or incomplete declaration can result in civil penalties or, in jurisdictions such as New Jersey, criminal prosecution.

This guide outlines the legal and fiscal role of these affidavits, defines consideration under statute, and explains how various jurisdictions in the United States and Canada regulate, verify, and enforce compliance. It also addresses penalties, audit exposure, and procedural steps for lawful and precise filing, with references to downloadable jurisdiction-specific forms.

What You Will Learn:

• Purpose and Legal Function of the Affidavit of Consideration
• Definition and Scope of “Consideration” in Real Estate Law
• Jurisdictional Compliance in the United States and Canada
• Fair Market Value Rules and Exempt Transfers
• Penalties, Audits, and Compliance Risks

The Legal and Fiscal Authority of the Affidavit of Consideration

Authorities across the United States and Canada treat the Affidavit of Consideration as a statutory instrument that governs property transfer compliance. The affidavit converts private valuation into a verified public record for taxation and assessment. State, provincial, county, and municipal agencies use the affidavit to determine transfer taxes, confirm declared market value, and maintain consistency in evaluation.

Most jurisdictions require immediate filing, even when a transaction generates no taxable obligation or registration in the land registry. Each jurisdiction imposes specific compliance rules. Legislatures prescribe administrative fines for late submission and criminal charges for deliberate falsification, such as the fourth-degree offence in New Jersey.

Why the Affidavit of Consideration Matters

The Affidavit of Consideration is a statutory instrument that establishes the taxable value of property transfers across U.S. and Canadian jurisdictions. It provides a sworn record of the true economic value exchanged in a real estate transaction, forming the foundation for tax assessment, property valuation, and regulatory compliance. Whether a transaction involves a commercial sale, family transfer, or corporate reorganization, the affidavit operates as an official declaration of consideration required by law.

Its legal significance rests on three core functions: fiscal accountability, administrative efficiency, and evidentiary reliability.

• Fiscal accountability: The affidavit serves as the verified basis for calculating transfer taxes and recording fees. Tax authorities rely on the declared amount to assess correct tax liability and prevent underreporting.
• Administrative efficiency: Registry and land title offices require verified consideration before recording deeds or processing ownership changes. The affidavit provides uniform data that expedites registration and ensures valuation consistency.
• Evidentiary reliability: As a sworn declaration, the affidavit carries legal weight in administrative and judicial proceedings. False statements constitute perjury or statutory fraud, creating a strong deterrent against misrepresentation.

The affidavit also promotes accurate property valuation by supplying verified sale data used by assessors to determine fair market values and maintain equitable tax assessments. Additionally, it serves as an anti-fraud safeguard, deterring undervaluation schemes, money laundering, and tax evasion through the legal risk of penalties, fines, or imprisonment for false declarations.

Common Use-Cases for an Affidavit of Consideration

Affidavits of Consideration apply to a wide range of transactions where ownership or beneficial interest in real property changes hands. Common scenarios include:

• Standard Property Sales: In arm’s-length transactions, the affidavit records the purchase price, assumed mortgages, liens, and any additional consideration such as personal property included in the sale.
• Corporate Reorganizations and Trust Transfers: When property moves between related business entities or into/out of trusts, the affidavit documents ownership continuity, lawful purpose, and exemption eligibility under corporate or estate laws.
• Family and Spousal Transfers: Many jurisdictions exempt certain familial transfers from taxation. The affidavit verifies the relationship, states whether the transfer occurs under a separation agreement or will, and confirms any assumed debt or exemption criteria.
• Gift and Estate Transfers: For gifts or transfers on death, the affidavit establishes that no monetary consideration was paid, identifies the fair market value for tax or audit purposes, and confirms the voluntary or testamentary nature of the transfer.
• Refinancing or Reorganization Transactions: When property is reconveyed for financing or merger purposes without a true sale, the affidavit clarifies that the conveyance involves no taxable exchange of value.

Across all jurisdictions, the affidavit’s central purpose remains unchanged: to record the true consideration exchanged, maintain transparency in land registration, and uphold the fiscal and legal integrity of property transfer systems.

Core Function of the Affidavit of Consideration

The Affidavit of Consideration declares the price or value exchanged in a property transfer. It transforms valuation from a private contractual matter into a mandatory disclosure for public revenue and assessment authorities.

• Authorities calculate ad valorem transfer taxes, including the Realty Transfer Fee in New Jersey and the Documentary Stamp Tax in Florida, based on the declared value.
• Assessors compare the declared consideration to current market data to prevent undervaluation and ensure accurate reassessment after ownership changes.

Procedural Compliance Requirement

Jurisdictions impose filing deadlines and verification duties to preserve accuracy and tax integrity. Officials require a properly executed affidavit within the statutory period, even before deed registration.

• In Michigan, the transferee files the Property Transfer Affidavit with the local assessor within forty-five days of the transaction and includes the transfer date, purchase price, property identification number, and transaction type.
• Authorities impose penalties for late filing and may delay property reassessment until they receive a valid submission.

Jurisdictional Variation in Function and Risk

Each jurisdiction defines the Affidavit of Consideration differently, creating distinct compliance risks and audit exposure.

New York integrates several tax filings into a single instrument through the Real Property Transfer Report (Form TP-584 or RP-5217). The form satisfies the Real Estate Transfer Tax, Mortgage Tax, and personal income tax exemption requirements. A single omission can trigger multiple statutory violations.

Québec requires the Declaration of Transfer of Immovable Property for statistical reporting. Officials send the completed form to the Minister of Finance instead of recording it in the land register. The province uses the data to monitor market activity and to guide fiscal policy, which emphasizes accuracy and record integrity rather than direct revenue collection.

Confidentiality rules differ. Some authorities restrict access to tax offices only, while others treat the affidavit as public information. Practitioners must verify disclosure rules in each jurisdiction to manage privacy obligations and client risk.

Statutory Definition and Valuation Principles of Consideration

For transfer tax purposes, legislation defines consideration broadly. The definition extends beyond cash exchanged between parties and includes any form of economic value conferred by a transferee to a transferor. Legal practitioners must apply the statutory definition prescribed by the taxing authority, which may differ from the contractual terms expressed in the deed.

A. Statutory Scope of Consideration

Legislation in both the United States and Canada defines consideration to include not only monetary payments but also liabilities, exchanges, and other forms of value. These definitions ensure that authorities capture the full economic substance of a property transfer.

1. Inclusion of Assumed Debt

Tax statutes in most jurisdictions treat the assumption of debt as part of taxable consideration. A grantee who accepts a transfer subject to an existing mortgage or lien effectively provides economic value equivalent to the debt relieved from the grantor.

• Florida defines consideration to include any mortgage, lien, or encumbrance “whether assumed or not.”
• Washington law subjects a transfer to real estate excise tax when the grantee assumes the grantor’s debt, even if no cash is exchanged.

This inclusion ensures taxation reflects the full economic value of the transaction rather than the nominal cash exchanged.

2. Allocation of Consideration Components

Certain jurisdictions require precise allocation of all components contributing to the total consideration. Ontario’s Land Transfer Tax Affidavit (Form 013-0449) mandates separate disclosure for cash payments, assumed mortgages, vendor take-back mortgages, exchanged property, and chattels.

• Filers must complete every category, inserting “Nil” where a component does not apply.
• The detailed breakdown allows the Ministry of Finance to determine the taxable value of consideration accurately and prevents undervaluation.

3. Nominal Consideration

Common law recognizes nominal amounts such as one or ten dollars as sufficient to validate a contract. However, such recitals do not meet statutory transfer tax requirements. When a conveyance lists nominal consideration, authorities examine the transaction for underlying liabilities or encumbrances.

• Tax authorities often require disclosure of existing mortgages even when nominal consideration is cited.
• Transfers for nominal value undergo review under the Fair Market Value rule to verify whether the transaction qualifies as a gift or should be taxed based on market value.

B. The Fair Market Value Standard in Non-Arm’s-Length Transfers

When parties are related or act without independent bargaining, authorities disregard the stated consideration and impose tax based on Fair Market Value (FMV). The principle applies to family gifts, intra-corporate transfers, and transactions between affiliated entities.

• The Canada Revenue Agency and U.S. state tax departments possess the authority to reassess the taxable value if a transaction deviates from FMV.
• Failure to disclose FMV in related-party transfers may result in penalties for misrepresentation or intentional underreporting.

Authorities presume certain transactions to be sales if subsequent actions, such as refinancing within six months, indicate a transfer for value. The taxpayer must provide documentary evidence to rebut such presumptions and preserve any claimed exemption.

 Affidavit of Consideration Compliance Frameworks in the United States

Transfer tax compliance in the United States operates under state-level legislation. Each jurisdiction prescribes its own affidavit or declaration requirements, fee schedules, and enforcement provisions. While the statutory goal remains consistent—verifying consideration and securing accurate tax collection—the procedures, forms, and penalties vary sharply among states. This section outlines the principal frameworks governing the Affidavit of Consideration and related transfer tax filings in high-volume jurisdictions.

A. New Jersey (NJ): Realty Transfer Fee (RTF)

Tax Mechanism and Filing

New Jersey imposes a graduated Realty Transfer Fee on all real property conveyances. The rate increases with the amount of consideration, reaching up to 3.5 percent for transfers exceeding one million dollars. Officials calculate the fee using the amount declared in the deed or the attached Affidavit of Consideration (Form RTF-1). The obligation applies to most residential and commercial properties.

• The RTF requires exact disclosure of consideration to prevent underpayment.
• Filers must use the correct RTF form series and submit at recording.

Falsification and Criminal Liability

State law classifies intentional falsification of declared consideration as a fourth-degree crime under N.J.S.A. 46:15-9. Authorities prosecute such acts as criminal offences rather than administrative violations. The statute imposes liability on any party who knowingly misstates consideration, including grantors, legal counsel, and authorized agents.

B. Pennsylvania (PA): Realty Transfer Tax and Statement of Value (SOV)

Mandatory Filing Condition

Pennsylvania requires the Statement of Value for all deeds that omit consideration or claim exemption from the Realty Transfer Tax. Each filing must include an original and a duplicate copy submitted to the Department of Revenue.

• Deeds lacking a stated price must include the SOV.
• Exemption claims require a full statutory explanation on the form.

Assessment and Compliance

Officials assess tax liability using Common Level Ratio Factors to align reported consideration with market value. The Department of Revenue rejects incomplete forms and imposes penalties for misstatements or omissions.

C. Delaware (DE): Realty Transfer Tax and Affidavit of Gain and Value

State and County Filing Requirements

Delaware enforces the Realty Transfer Tax at both the state and local levels. The state requires Form 5402, the Realty Transfer Tax Return and Affidavit of Gain and Value, for every property transfer.

• Practitioners must file state, county, and often municipal affidavits simultaneously.
• New Castle County and the City of Wilmington impose additional forms for exemption or supplemental documentation.

Rate and Procedural Complexity

The state raised its transfer tax rate by one percent in August 2017, increasing the total effective rate to as high as 4 percent when combined with local obligations. Multi-tiered filing requirements increase administrative burden and audit exposure.

D. New York (NY): Real Property Transfer Report (RP-5217)

Multi-Functional Tax Reporting

New York uses the Real Property Transfer Report (Form RP-5217 or TP-584 series) to satisfy multiple statutory reporting obligations, including the Real Estate Transfer Tax, the Mortgage Tax, and certain income tax exemptions.

• One filing covers three tax regimes, heightening the effect of any error.
• The form’s unified compliance function requires precision in completion and execution.

Procedural and Technological Standards

The official RP-5217-PDF includes a scannable barcode that requires electronic preparation using Adobe Acrobat. County clerks reject handwritten or altered versions.

• New York City employs the Automated City Register Information System (ACRIS).
• Staten Island uses a separate RP-5217-NYC variant.

E. California (CA): Documentary Transfer Tax (DTT)

Affidavit and Declaration

California calculates its Documentary Transfer Tax based on the declared value of property conveyed. Each deed must contain a Documentary Transfer Tax declaration stating whether the tax is based on the full value or on the value less liens.

• The declaration must appear in the deed text and bear the grantor’s signature.
• The Documentary Transfer Tax Affidavit supports exemptions and clarifies the computation method.

Calculation Basis

Officials compute the DTT on either the total sale price or the net value after deduction of existing liens. Errors in computation or omission of liens trigger reassessment and penalties.

F. Florida (FL): Documentary Stamp Tax (DST)

Tax on Deeds

Florida imposes a Documentary Stamp Tax of seventy cents per one hundred dollars of consideration, rounded upward. The statutory definition of consideration includes all forms of value, including mortgage assumptions and other encumbrances.

• Miami-Dade County applies a lower base rate but adds a surtax on non-exempt properties.
• Transfers of single-family dwellings may qualify for a surtax exemption.

Tax on Indebtedness

The state levies a separate documentary stamp tax on mortgages and liens at thirty-five cents per one hundred dollars of secured debt.

• Filers must calculate and pay both taxes when recording a secured transfer.
• Late or incorrect filings can delay recording and incur interest.

G. Texas (TX): Statutory Distinction

Absence of State Transfer Tax

Texas imposes no state-level transfer tax, which eliminates the need for an Affidavit of Consideration.

Deed Recital Requirement

A valid deed must express the intent to convey title and state valuable consideration. Recording serves as public notice to subsequent bona fide purchasers.

• The deed itself constitutes the declaration of consideration.
• Minimal statutory requirements simplify compliance and reduce administrative costs.

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Jurisdiction	Form Name	Form Number
New Jersey	Affidavit of Consideration	RTF-1
Pennsylvania	Statement of Value	—
Delaware	Realty Transfer Tax Return and Affidavit of Gain and Value	5402
New York	Real Property Transfer Report	RP-5217 / RP-5217-PDF / RP-5217-NYC
New York	Combined Transfer and Mortgage Tax Report	TP-584
California	Documentary Transfer Tax Affidavit	DTTA

Canadian Land Transfer and Property Transfer Consideration Requirements

Land Transfer Tax (LTT) and Property Transfer Tax (PTT) fall under provincial and, in certain jurisdictions, municipal authority. Each province prescribes its own affidavit, declaration, and valuation procedures to verify the value of consideration and to enforce statutory assessment accuracy. Compliance depends on full disclosure, allocation of consideration, and adherence to filing timelines set by each governing body.

A. Ontario (ON): Provincial Land Transfer Tax

Core Instrument and Tax Trigger

Ontario enforces the Land Transfer Tax through the Land Transfer Tax Affidavit (Form 013-0449). The Ministry of Finance levies the tax on the value of consideration whenever ownership or beneficial interest in land changes, whether or not registration occurs.

• The affidavit applies to all transfers, including those completed through corporate reorganizations or trust arrangements.
• A change in beneficial ownership triggers liability even if the conveyance is unregistered.

Mandatory Allocation Detail

The form requires disclosure of every element comprising the total consideration. Filers must provide monetary and non-monetary details and insert “Nil” when a category does not apply.

• The allocation must identify cash payments, assumed or returned mortgages, property exchanged, and chattels.
• The Ministry calculates the tax from the full declared value, encompassing both real and tangible personal property.

B. Toronto (ON): Municipal Land Transfer Tax

Dual Filing Requirement

The City of Toronto applies a municipal Land Transfer Tax in addition to the provincial levy. Compliance requires the coordinated filing of both the Provincial Land Transfer Tax Affidavit and the Municipal Land Transfer Tax (MLTT) Affidavit, together with any rebate or exemption application.

• Reported consideration values must match across all filings to prevent audit discrepancies.
• Inconsistent declarations may suspend processing or trigger reassessment.

Exemption Documentation Standards

Applicants seeking exemptions, including the First-Time Home Buyer rebate, must submit comprehensive supporting documentation to Toronto Revenue Services.

• Required materials include the MLTT Affidavit, Supplementary Information Form, the registered conveyance, the Agreement of Purchase and Sale, the Statement of Adjustments, and proof of citizenship or permanent residency.
• Proof of occupancy within nine months of registration is mandatory to maintain exemption eligibility.

C. Québec (QC): Land Transfer Duties and Declaration of Immovable Property

Declarative and Statistical Function

Québec requires the Declaration of Transfer of Immovable Property (Form TP-584-V) for every property transfer. The declaration supports the Ministry of Finance in monitoring market activity and shaping fiscal policy.

• Officials collect the data for statistical purposes rather than direct tax assessment.
• The declaration remains separate from the land register, preserving its administrative purpose.

Procedural Filing and Income Tax Interface

The parties must submit the declaration within ninety days of transfer, regardless of exemption status. The form identifies the cadastral designation and the transaction type, such as sale, exchange, or contribution to a partnership.

• Transfers between separating spouses may create future capital gains liability for the transferee under provincial income tax law.
• Practitioners must document the transfer terms to ensure accurate tax treatment and compliance with family law provisions.

D. British Columbia (BC): Property Transfer Tax Declaration

Tax Basis and Filing Process

British Columbia calculates the Property Transfer Tax on the fair market value of the property at transfer. The Property Transfer Tax Declaration is filed electronically through the Land Title and Survey Authority (LTSA).

• Filers remit the tax payment directly to the Minister of Finance as part of the LTSA submission.
• The same filing process includes the Transparency Declaration and, when required, the Transparency Report.

E. Alberta (AB): Transfer of Land (Form 8)

Instrument and Application

Alberta’s system relies on the Transfer of Land (Form 8) under the Land Titles Act. The declaration verifies consideration and validates the conveyance for registration.

• Filers state the consideration amount in monetary terms or use “Nil” for gifts and “Estate” for testamentary transfers.
• The Registrar uses the declared value to confirm registration authenticity and to inform subsequent property valuation.

Official Forms Referenced

Province / Municipality	Form Name	Form Number or Designation	Primary Function
Ontario (Provincial)	Land Transfer Tax Affidavit	Form 013-0449	Declares total consideration for LTT assessment
Toronto (Municipal)	Municipal Land Transfer Tax Affidavit	(No number)	Declares and verifies consideration for MLTT; used with rebate/exemption applications
Québec	Declaration of Transfer of Immovable Property	Form TP-584-V	Reports transfer for fiscal and statistical purposes
British Columbia	Property Transfer Tax Declaration	(Electronic – LTSA system)	Declares fair market value and supports PTT calculation
Alberta	Transfer of Land	Form 8	Declares consideration for registration and assessment

Required Forms and Their Legal Function

Transfer taxation and affidavit compliance rely on statutory forms that formalize the declaration of consideration. Each jurisdiction issues its own instruments to record transaction value, verify exemption claims, and establish tax liability. Correct completion and filing of these forms determines both the enforceability of the conveyance and the validity of any claimed exemption.

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A. Purpose and Legal Effect of the Affidavit of Consideration

The Affidavit of Consideration serves as the central declaration in all real estate transfer transactions. The affiant swears to the total value exchanged, transforming private agreement terms into an official record used by taxing authorities.

• Filing the affidavit creates a sworn, evidentiary statement that supports the calculation of transfer taxes and recording fees.
• The affidavit provides the legal foundation for deed registration and confirms that the declared value represents the complete economic consideration.

B. Forms Used in the United States

Each state prescribes its own documentation to establish the taxable value of consideration and authorize recording. The principal instruments include:

• New Jersey – Affidavit of Consideration (Form RTF-1): Declares the full consideration for the Realty Transfer Fee and must accompany every deed submitted for recording.
• Pennsylvania – Statement of Value: Confirms consideration or exemption status under the Realty Transfer Tax and must be filed in duplicate with the Department of Revenue.
• Delaware – Realty Transfer Tax Return and Affidavit of Gain and Value (Form 5402): Records the sale price and gain for both state and county transfer tax purposes.
• New York – Real Property Transfer Report (Forms RP-5217 and RP-5217-NYC): Documents transaction details for the Real Estate Transfer Tax and supports eligibility for recording.
• New York – Combined Transfer and Mortgage Tax Report (Form TP-584): Consolidates the reporting of Real Estate Transfer Tax, Mortgage Tax, and related exemptions.
• California – Documentary Transfer Tax Affidavit (DTTA): Identifies the computation basis for the tax and confirms any claimed exemption; incorporated into the deed text.
• Florida – Documentary Stamp Tax Declaration: Appears directly on deeds and mortgage instruments to evidence payment of the documentary stamp tax on both consideration and indebtedness.
• Texas – Deed Recital: Serves as the declaration of consideration within the deed itself, as Texas imposes no separate transfer tax affidavit.

Each instrument functions as a sworn disclosure enabling tax authorities to calculate liability with legal finality. Recording officers reject deeds or instruments that lack a corresponding declaration of consideration.

C. Forms Used in Canada

Canadian provinces and certain municipalities employ formal affidavits or declarations to document both legal and beneficial ownership changes. The principal instruments include:

• Ontario – Land Transfer Tax Affidavit (Form 013-0449): Declares the total value of consideration, including cash payments, assumed mortgages, and non-monetary value; required for registration under the Land Transfer Tax Act.
• Toronto – Municipal Land Transfer Tax Affidavit: Declares the same value for the municipal levy and accompanies any rebate or exemption application filed with Toronto Revenue Services.
• Québec – Declaration of Transfer of Immovable Property (Form TP-584-V): Records details of the transaction for fiscal and statistical purposes; submitted to the Minister of Finance within ninety days of transfer.
• British Columbia – Property Transfer Tax Declaration: Filed electronically through the Land Title and Survey Authority (LTSA) to declare fair market value and remit the Property Transfer Tax.
• Alberta – Transfer of Land (Form 8): States the consideration amount, including “Nil” for gifts or “Estate” for testamentary transfers, and authenticates the conveyance under the Land Titles Act.

Each form compels disclosure of the complete transaction value and supports assessment, audit, and market transparency at the provincial level.

D. Procedural Integration and Compliance Sequence

The forms operate within a single procedural chain that connects declaration, taxation, and registration.

• The Affidavit of Consideration must accompany or precede the deed submission to establish the declared value before recording.
• Transfer tax returns, gain declarations, and municipal affidavits must mirror the value stated in the primary affidavit to maintain internal consistency.
• Provincial and state authorities compare all filings for accuracy; discrepancies can result in rejection, reassessment, or administrative penalties.

Proper sequencing and exact correspondence among all filed documents ensure that the conveyance satisfies statutory tax obligations and withstands subsequent audit review.

How to Complete and File an Affidavit of Consideration

Completing and filing an Affidavit of Consideration requires strict adherence to statutory form, execution, and filing procedure. Errors in sequence or content can render a transfer defective or trigger reassessment. The following framework provides the standard method used across most North American jurisdictions.

A. Preliminary Requirements

Before completing the affidavit, confirm the jurisdiction, form type, and governing statute.

• Obtain the latest prescribed form from the relevant registry or tax authority.
• Review whether the transaction qualifies for any exemption or reduced rate.
• Prepare all supporting documentation, including the deed, purchase agreement, mortgage details, and identification of parties.

B. Completion of the Affidavit

Each affidavit must contain full and accurate information regarding the property, parties, and consideration.

1. Identify the Correct Form

Use the official form designated by the jurisdiction (for example, RTF-1 in New Jersey or Form 013-0449 in Ontario). Outdated or altered forms are invalid.

1. Enter Property and Party Details

Record the legal names of the transferor and transferee, the full property address, and the legal description as registered.

1. Declare the Total Consideration

State the complete value of the transaction. Include cash payments, assumed debts, liens, and any other obligations forming part of the transfer value.

1. Explain Nominal or Nil Consideration

If the transaction involves minimal or no payment, specify the statutory reason, like a gift, estate distribution, or spousal transfer under a separation agreement.

1. Complete Exemption Declarations

Indicate any applicable exemptions by citing the governing statutory clause and attaching supporting documentation or statements as required.

1. Execute Under Oath

The affiant must sign the affidavit before a notary public, commissioner for oaths, or other authorized officer. The oath or affirmation must be administered appropriately and dated.

C. Filing and Registration

Filing integrates the affidavit with the conveyancing and taxation process.

• Attach the executed affidavit to the deed or transfer instrument.
• File both documents with the designated registry or recording office within the statutory timeframe.
• Pay all applicable transfer taxes and recording fees at the time of submission.
• Obtain a registry stamp or filing confirmation number to verify acceptance.

Jurisdictions may reject instruments that are incomplete, unsigned, or inconsistent with accompanying documents.

D. Record Retention and Verification

Maintain accurate and complete records to ensure compliance and facilitate future verification.

• Retain a certified copy of the affidavit and deed in the transaction file.
• Ensure that the declared consideration matches the purchase agreement, statement of adjustments, and closing documentation.
• Keep all financial records, including mortgage statements and exemption certifications, for the statutory retention period.

Consistent recordkeeping preserves the evidentiary integrity of the transfer and supports defense against reassessment or audit.

E. Practical Compliance Guidance

To ensure procedural and legal accuracy:

• Verify that all figures, exemptions, and signatures correspond across every filing document.
• Include assumed mortgages or encumbrances when they qualify as part of the consideration.
• Confirm exemption eligibility before claiming.
• Use only the latest version of all prescribed forms.
• Avoid undervaluation or incomplete disclosure; such acts constitute a statutory breach.
• Seek legal or conveyancing advice for transactions involving multiple parties, corporations, or trusts.

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Common Errors in Filing an Affidavit of Consideration

Administrative errors in affidavit preparation can invalidate registration, delay recording, or trigger audit review. The most frequent procedural defects include:

• Filing an incorrect or outdated form version issued by the jurisdiction.
• Omitting or misstating the total consideration or failing to disclose assumed debt.
• Asserting an exemption without meeting the statutory requirements or supplying supporting documentation.
• Submitting the affidavit separately from the deed or outside the prescribed filing sequence.
• Failing to execute the affidavit under oath or obtain proper notarization.
• Neglecting to retain a stamped or certified copy for the transaction record.
• Overlooking the graduated or surtax schedule applicable to high-value transfers.

Compliance requires disciplined documentation and precise adherence to filing protocol. Each affidavit operates as a sworn financial disclosure, and any error or omission can expose the parties to reassessment, penalties, or formal investigation.

Final Thoughts

The Affidavit of Consideration functions as the cornerstone of real estate transfer compliance across North America. It transforms private agreements into sworn public declarations that establish the economic substance of property transactions. Every affidavit—whether in the United States or Canada—serves the same core function: to verify the true value exchanged, support equitable taxation, and preserve the integrity of the public record.

Across both jurisdictions, the document carries evidentiary weight and legal enforceability. It ensures that transfer taxes reflect the actual value of consideration, prevents undervaluation or fraud, and provides verifiable data for property assessment and fiscal planning. Errors, omissions, or false statements may lead to administrative penalties, reassessment, or criminal liability.

United States vs. Canada: Jurisdictional Distinction

The United States governs affidavit compliance at the state and county levels, where each jurisdiction maintains its own statutory forms, filing procedures, and tax structures. For example, New Jersey enforces criminal penalties for falsified declarations under N.J.S.A. 46:15-9, while New York’s unified filing system (Forms RP-5217 and TP-584) integrates multiple tax obligations into a single compliance mechanism. U.S. systems emphasize tax enforcement and procedural precision.

By contrast, Canada operates through provincial and municipal frameworks. Provinces such as Ontario, Québec, and British Columbia require comprehensive transfer declarations, including Ontario’s Land Transfer Tax Affidavit (Form 013-0449) and Québec’s Declaration of Transfer of Immovable Property (Form TP-584-V), which serve dual roles: tax calculation and fiscal data collection for market analysis. The Canadian approach places equal emphasis on taxation and economic reporting.

• File the correct, jurisdiction-specific affidavit before or alongside the deed to establish the taxable value of consideration.
• Ensure the declared consideration includes all components: cash payments, assumed debt, liens, and non-monetary exchanges.
• Verify exemption eligibility before claiming; incomplete documentation can void exemption status.
• Maintain complete records—affidavit, deed, tax receipt, and supporting documents—for statutory retention periods.
• Treat each affidavit as a sworn legal instrument subject to perjury and fraud statutes.

While procedures differ between federal systems, the underlying legal principle is uniform: a valid property transfer requires an accurate, sworn declaration of consideration.

This duty underpins fiscal accountability, ensures public record integrity, and preserves the rule of law in all real property conveyances.

FAQs

1. What is an Affidavit of Consideration in real estate transactions?

An Affidavit of Consideration is a sworn statement declaring the monetary value (or equivalent value) exchanged when property is transferred. It’s used by tax and recording authorities to calculate transfer taxes or verify exemptions. The document ensures transparency and legal compliance in deed recording and tax assessment.

2. Who is required to complete and file the Affidavit of Consideration — the buyer or the seller?

This depends on the jurisdiction. For example, in New Jersey, the seller typically completes the “Affidavit of Consideration for Use by Seller (RTF-1),” while the buyer may also need to complete a separate affidavit if claiming exemptions. In other states or provinces, the transferee (buyer or grantee) may be responsible. Always verify local filing rules.

3. Do I need an Affidavit of Consideration if no money changes hands (e.g., gift or family transfer)?

Yes, usually. Even when the transfer is a gift or occurs between family members, most jurisdictions require an affidavit or declaration of nominal or “nil” consideration. This allows authorities to record the transfer and apply any exemptions (such as spousal or inheritance exemptions) correctly.

4. How does the Affidavit of Consideration affect transfer taxes and exemptions?

The amount of consideration declared directly determines the transfer tax or land transfer tax payable. If the affidavit understates the consideration, the transfer tax could be underpaid — triggering penalties or deficiency assessments. Conversely, if an exemption applies (e.g., inter-spousal, estate transfer, or charitable conveyance), the affidavit is the document that supports the claim. Inaccurate or missing affidavits may cause delays or denial of exemptions.

5. How do U.S. and Canadian requirements for the Affidavit of Consideration differ?

In the United States, affidavits of consideration are governed at the state or county level, with each jurisdiction prescribing its own forms and rules (e.g., NJ RTF-1, Delaware Affidavit of Value).
In Canada, the process is provincial, and the form names vary (e.g., Ontario’s Land Transfer Tax Affidavit or Québec’s Declaration of Transfer of Immovable Property). Canadian affidavits often double as tax declarations filed at the land registry, while U.S. ones are typically recorded with deeds.

6. Can I prepare and file an Affidavit of Consideration myself, or do I need a lawyer or notary?

In many jurisdictions, individuals can prepare and file the form themselves — but it must often be notarized or sworn before a notary public, commissioner of oaths, or similar official. For complex cases (corporate transfers, multi-party transactions, exempt transfers), consulting a real-estate attorney or conveyancer is highly recommended.

Sources

1. Property Sale Realty Transfer Fee – NJ Division of Taxation – NJ.gov
   https://www.nj.gov/treasury/taxation/realty.shtml
2. Documentary Stamp Tax – Florida Department of Revenue
   https://floridarevenue.com/taxes/taxesfees/Pages/doc_stamp.aspx
3. Instructions for Form TP-584 – New York State Department of Taxation and Finance (Tax.NY.gov)
   https://www.tax.ny.gov/pdf/current_forms/property/tp584i.pdf
4. Instructions to Download Form RP-5217-PDF, Real Property Transfer Report – New York State Department of Taxation and Finance (Tax.NY.gov)
   https://www.tax.ny.gov/pit/property/new-homebuyers/filing-rp5217.htm
5. Land Transfer Tax Affidavit (Form 013-0449) – Government of Ontario, Central Forms Repository
   https://forms.mgcs.gov.on.ca/en/dataset/013-0449
6. Municipal Land Transfer Tax (MLTT) Resources for Lawyers – City of Toronto
   https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/municipal-land-transfer-tax-mltt-resources-for-lawyers/
7. Declaration of Transfer of Immovable Property (Form TP-584-V) – Revenu Québec
   https://www.revenuquebec.ca/en/businesses/sector-specific-measures/transfer-of-an-immovable-special-duties/
8. Property Transfer Tax Declaration – Land Title and Survey Authority of British Columbia (LTSA)
   https://ltsa.ca/professionals/land-title-practice/land-title-forms/
9. Transfer of Land (Form 8) – Government of Alberta, Land Titles Office
   https://landregistry-beta.alberta.ca/customer-service/help/completing-land-titles-forms/transfer-of-land
10. 2024 New Jersey Revised Statutes Title 46:15-9 – Falsifying Consideration; Penalty – Justia Law (Government-Published Legal Code Access)
    https://law.justia.com/codes/new-jersey/title-46/section-46-15-9/