Inherited and estate homes
Selling a house during probate in New Jersey
The legal side of selling an estate home is usually more straightforward than families expect. Here is how it typically works in Monmouth and Ocean counties, so you know what to ask your attorney.
Probate in New Jersey
How the legal side usually works
Probate starts at the county Surrogate's Court. In Monmouth County that is in Freehold, and in Ocean County it is in Toms River. New Jersey requires a short waiting period after death, about 10 days, before a will can be probated. The executor named in the will then receives Letters Testamentary. If there is no will, the court appoints an administrator, who receives Letters of Administration.
The executor or administrator is the one who can sell the house. Our listing agreement and the sale contract are signed by that person, on behalf of the estate. Heirs who are not the executor stay informed, but they do not usually sign.
New Jersey has an inheritance tax, not an estate tax. The state estate tax was repealed for deaths in 2018 and later. Close family members generally owe no inheritance tax: spouses, civil union and domestic partners, children, stepchildren, grandchildren, parents and grandparents. Siblings, other relatives and friends may. Before a house can be sold, the estate usually needs a tax waiver from the New Jersey Division of Taxation, which the estate's attorney handles.
A house can often be listed while the paperwork is still in progress. We coordinate with the estate's attorney so the timing works and nothing holds up the closing.
We are real estate agents, not attorneys or tax advisors. This is general information to help you know what to ask. Your estate attorney and tax advisor should guide the legal and tax decisions for your family's situation.
Common questions
Questions about probate and taxes
Can we sell a house before probate is finished in New Jersey?
The house can usually be prepared and often listed while the estate is being settled, but the sale can only close once the executor or administrator has been appointed by the Surrogate's Court and the required tax waiver is in place. Your estate attorney will confirm the timing, and we coordinate the listing around it.
Who signs the paperwork to sell an inherited house?
The executor named in the will, or the administrator appointed by the court if there is no will, signs on behalf of the estate. If the house was already transferred into the heirs' names, all of the owners sign.
Is there inheritance tax on a house in New Jersey?
New Jersey has an inheritance tax but no longer has an estate tax for deaths in 2018 and later. Spouses, civil union and domestic partners, children, stepchildren, grandchildren, parents and grandparents generally pay no inheritance tax, while siblings, other relatives and friends may. The estate usually needs a state tax waiver before the house can be sold. Your estate attorney or tax advisor can tell you what applies.
Do we pay capital gains tax when we sell an inherited house?
Inherited property generally receives a new tax basis equal to its value at the date of death, which often means little or no capital gains tax when the house sells soon after. A tax advisor should confirm this for your situation, and we can provide a date of death value to help.
How long does it take to sell an inherited house?
It depends on where the estate is in probate and which option you choose. A direct as is sale can close in a few weeks once the paperwork is ready. A market listing usually takes longer, since buyers typically need a mortgage.
Free guide to download
Selling an Inherited Home in New Jersey
Everything on these pages in one printable guide: the first steps, probate and taxes, your options, special situations, common questions, a checklist, and a house record to fill in with codes, accounts and phone numbers. Free, no sign up.
Download the guide (PDF)More for families
Other guides that may help
- Getting the house readyThe first steps, the clean out, and which repairs are worth doing before you sell.
- Selling from out of stateWhat we handle so your family does not have to travel back and forth.
- Special situationsA parent in assisted living, a reverse mortgage, an adult community home, or heirs who disagree.
Talk it through
No pressure, just a plan
Tell us a little about the house and where things stand. We will call you back, usually the same day, and help you figure out the next step, even if that step is not selling.
Questions about where the estate stands? Call or text either of us.