Do All Heirs Have to Agree to Sell an Inherited House in New Jersey?

Not always. In New Jersey, an executor or administrator generally has the power to sell estate real property without every heir signing off, unless the will, the appointment or a court order limits that power, or the will leaves the house to a named person. That's the law on paper. In practice, a sale goes far better when every heir sees the same numbers and the same plan from the start.

I'm Dennis Mark Interdonato with The Dennis Mark Group. When I sell an estate home in Monmouth or Ocean County, there's usually one person who signs and several people who care a great deal about the result. Here's how the authority works, and how to keep a family on the same page while the house sells.

Can an executor sell the house without the beneficiaries' approval?

Generally, yes. New Jersey's fiduciary powers statute, N.J.S.A. 3B:14-23, says that every fiduciary, acting "in the exercise of good faith and reasonable discretion," has the power to sell estate property "at public or private sale, and on terms as in the opinion of the fiduciary shall be most advantageous to those interested therein." That power covers real property that belonged to the person who died.

There are limits written into the same statute:

• The will, the appointment or a court order can restrict it. The powers apply "in the absence of contrary or limiting provisions."
• A house the will leaves to a specific person is different. The sale power doesn't apply where the property is "specifically disposed of." If the will says "my house goes to my daughter," ask the attorney how the estate transfers it to her.
• Good faith is part of the deal. The power comes with a duty to use it reasonably, for the people who inherit.

The estate's attorney reads the will and the appointment and tells you which applies.

What if there are co-executors or co-administrators?

It happens often with siblings. The Ocean County Surrogate's planning guide explains that when several children have an equal right to serve as administrator, the others can renounce in favor of one, or they can be appointed as co-administrators. If there's more than one fiduciary, the attorney confirms who needs to sign the listing, the contract and the deed. Plan for it early, because a co-executor who lives out of state needs time to sign.

What if the house already passed to the heirs?

Sometimes the house leaves the estate before it's sold, for example when it's deeded to the heirs. The Ocean County guide explains that when two or more people who aren't spouses own real estate together, each owns an individual share as tenants in common, unless the deed says joint tenants with rights of survivorship. Then the heirs are co-owners rather than beneficiaries waiting on an executor, and the attorney will explain what a sale takes from there.

Do the heirs at least get notified?

Yes. The Ocean County guide says that once probate is complete, the personal representative has sixty days to notify the heirs at law, next of kin and beneficiaries that the application was made. And at the end, beneficiaries sign refunding bonds and releases, the documents that show they received their share.

What happens if the heirs can't agree?

The Monmouth County Surrogate's guide explains that when disagreements over an estate lead to court action, the matter goes to the Superior Court, Chancery Division, Probate Part, with the Surrogate handling the filings as Deputy Clerk. That's attorney territory, and it costs time and money most families would rather keep.

Before it gets anywhere near a courtroom, a family disagreement over an estate house usually isn't about who has the right to sign. It's about three questions:

1. What is the house worth? One heir remembers what the neighbor's house sold for. Another saw a number online.
2. Should we fix it up first? One heir wants to sell as-is this month. Another wants to renovate the kitchen.
3. Is anyone being kept in the dark? The heir who lives farthest away usually feels it first.

How do you keep every heir on the same page?

This is the part of an estate sale I'm built for:

• One number everyone sees. A market evaluation backed by recent sales and my own walk-through, shared with the executor, every heir and the attorney. Start with what the house is worth.
• Two plans on paper. Sell as-is, or make a few targeted updates first, with what each one should bring. I walk the house with a builder's eye, so the repair estimate isn't a guess. Then the estate decides.
• The same update for everybody. Written updates go out at every milestone, so the heir in Florida knows what the heir in Brick knows.
• No surprises. I tell people what they need to hear, not what they want to hear, including about price.

If one heir wants to keep the house, that's worth discussing before it's listed. See buying out a sibling's share of an inherited house. If one heir is living in it, read what to do when one heir lives in the inherited house.

Frequently Asked Questions

Can an executor sell a house without all beneficiaries approving in New Jersey?

Generally, yes, under N.J.S.A. 3B:14-23, unless the will, the appointment or a court order limits the power, or the will leaves the house to a named person. The executor still has to act in good faith, and the attorney confirms the details.

What if the will leaves the house to one person?

Then the statute's sale power doesn't apply to it, because it's specifically disposed of. Ask the estate's attorney how the house is transferred to that person, or how a sale would work if they want to sell.

What happens if the heirs can't agree on a price?

Start with a market evaluation everyone can see. If the disagreement turns into a court case, it goes to the Superior Court's Probate Part, so involve the attorney early.

Do the heirs get a say in the repairs?

The executor decides, but heirs who see both plans side by side, with numbers, tend to agree faster. That's why I bring two.

This is general information, not legal, tax or lending advice. The estate's attorney confirms who has authority to sell and what the will allows.

About the author

Dennis Mark Interdonato is a REALTOR® and Master CDRE® who leads The Dennis Mark Group at Keller Williams Realty Ocean Living in Point Pleasant, NJ, helping buyers and sellers throughout New Jersey make their next move, with Monmouth and Ocean County as home base. See how I handle estate and probate home sales.

Keep reading

• The free Estate & Probate Guide
• What happens to a house when someone dies without a will?
• How to sell an inherited house in New Jersey
• What will the home sell for?
• Have a question this didn't answer? Send it to Dennis Mark.