Selling an Estate Home in a 55+ Community in Ocean or Monmouth County

Selling an estate home in a 55+ community works like any estate sale on the legal side, with one more layer: the community's own rules, which decide who can buy and live there and what the association needs before closing. Get the estate's authority settled, get the community's documents early, and price the home against other homes in the same community.

I'm Dennis Mark Interdonato with The Dennis Mark Group at Keller Williams Realty Ocean Living. Ocean and Monmouth County have a long list of age-restricted communities, and my Adult Communities pages cover their homes, clubhouses, amenities and association fees town by town. Here's what changes when the estate home is in one of them.

What makes a community "55 and older" under federal law?

Federal fair housing rules let a community qualify as housing for older persons if it meets three tests in HUD's regulations:

• The 80 percent rule. At least 80 percent of its occupied units must be occupied by at least one person 55 or older (24 CFR 100.305).
• Published intent. It must publish and follow policies and procedures showing it operates as 55-and-older housing (24 CFR 100.306).
• Age verification. It must have procedures to verify occupants' ages, updated at least every two years, and those procedures may be part of a normal purchasing arrangement (24 CFR 100.307).

The same rule lets each community decide the age restriction, if any, for units not occupied by someone 55 or older, as long as it follows its published policies. That's why the community's own documents matter as much as the federal rule.

Can an heir move into a 55+ home they inherit?

It depends on the community's rules, not on the inheritance. Owning the home and being allowed to live in it can be two different things in an age-restricted community. Before anyone plans to move in, rent it out or hold onto it, ask the association for its written occupancy rules, and have the estate's attorney read them.

What does the association need when an estate sells?

Every community is different, so ask the management office early for:

1. The governing documents, including age and occupancy rules and any rules on showings and signs.
2. What it needs from a buyer, such as an application or age verification, and how long its review takes.
3. Fees at resale, if any, and who pays them under the community's rules.
4. The account status, so the estate knows whether monthly fees are current. Those fees keep coming while the home is for sale, like the property taxes.
5. Access for showings, inspections and the appraiser, if the community has a gate or a front desk.

The estate's attorney and the title company will want those answers before closing, so getting them up front saves time.

What if the home is a co-op?

Then the estate holds shares or a membership certificate rather than a deed, and the transfer steps are different. The NJ Division of Taxation's general information sheet, Form O-10-C, treats co-op shares separately from real estate for inheritance tax waivers. The estate's attorney and the co-op's board will tell you what they need.

Does the estate side work the same way?

Yes. Someone still needs authority to sign. The Ocean County Surrogate issues probate certificates on the 11th day after death and administration certificates, when there's no will, on the 6th day, and the Monmouth County Surrogate can't issue Letters Testamentary until the eleventh day. A house still needs the Division of Taxation's waiver to transfer in most cases, and the NJ Division of Taxation's Guide to Being an Executor says real estate transfers always require Form 0-1. See who pays NJ inheritance tax on a house for the classes and rates.

One thing that's often simpler: if the spouses owned the home as tenants by the entirety, the Ocean County Surrogate's guide says it becomes the survivor's sole property. My article on selling after a spouse dies covers that case.

How do you price and prepare a home in a 55+ community?

Against its neighbors. Buyers in these communities compare the same models, the same floor plans and the same fees side by side, so the most useful comparable sales are usually inside the community itself. Start with my home value tool, then let me walk the home.

I spent years building and remodeling New Jersey homes. An estate home in a 55+ community has often gone years without updates, and in a community full of the same models, condition is what sets one apart. I'll show you two plans, sell as-is or make a few targeted updates first, with what each should bring.

Then comes the launch. The first two weeks set the price, so the home goes live with photos, video and a plan built around the community's rules for showings.

Frequently Asked Questions

Who can buy a home in a 55+ community in New Jersey?

Anyone can buy where the community's rules allow it. Who can live there depends on the community's published age and occupancy policies, which HUD's rules require it to follow.

Do the monthly association fees stop when the owner dies?

No. Ask the association for the account status and ask the estate's attorney how the estate should keep fees and taxes current until the sale.

Does the association have to approve the buyer?

Some communities have an application or approval step, and HUD's rules require age verification procedures, which can be part of a purchase. Ask the management office what this community requires.

Do I need probate to sell a parent's home in a 55+ community?

If it was in the parent's name alone, generally yes. The Surrogate's Letters give the executor or administrator authority to sell.

This is general information, not legal, tax or lending advice. The estate's attorney should review the community's documents.

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. Read more about Dennis Mark.

Keep reading

• Estate sale or clean-out first?
• How to sell an inherited house in New Jersey
• The Estate & Probate Guide and how I handle estate home sales
• Have a question this didn't answer? Send it to Dennis Mark.