Detailed Answer
When a decedent’s real property sells in New Jersey, heirs often need to sign specific documents to direct the escrow agent or personal representative on how to distribute net proceeds. The required forms vary depending on whether the sale occurs in formal probate, by summary proceeding for a small estate, or outside probate.
1. Formal Probate Sale
- Court‐Approved Order Authorizing Sale: Under N.J.S.A. 3B:17-24 and 3B:17-25, the personal representative petitions the Superior Court to approve the sale. Heirs sign a Consent to Sale and Waiver of Objection to confirm they won’t challenge the transaction.
- Distribution Authorization Letter: Heirs execute a written direction to the escrow agent or title company (sometimes called an Escrow Disbursement Instruction) specifying each beneficiary’s share.
- Receipt and Release Form: After closing, each heir signs a Receipt and Release of Proceeds acknowledging payment and releasing any future claims against the estate.
2. Summary Proceedings for Small Estates
If the total personal property value (excluding real estate) falls below $20,000, New Jersey’s small‐estate statute applies. Although this procedure mostly covers personal property, heirs sometimes use it to collect cash from a sale of the decedent’s home if no formal probate is open.
- Affidavit of Entitlement (N.J.S.A. 3B:20-19): Each heir swears under oath that no formal probate is pending and that the sale proceeds belong to them. This affidavit directs the holder of funds (often a title company) to distribute proceeds directly to the heirs.
3. Sale Outside Probate (Joint Tenancy or Transfer on Death)
- Affidavit of Survivorship or Transfer on Death Declaration: When property held as joint tenants or with a valid Transfer on Death Deed passes automatically to the survivor, that person signs an Affidavit of Survivorship or similar declaration to collect sale proceeds without court involvement.
In all cases, title companies and escrow agents require a certified death certificate and a copy of any letters testamentary, small‐estate order, or recorded Transfer on Death Deed before releasing funds.
Helpful Hints
- Confirm whether the estate qualifies for small‐estate procedures under N.J.S.A. 3B:20-19 (visit https://www.njleg.state.nj.us for statute text).
- Check if the decedent’s will nominates a personal representative; if so, that person usually handles sale and distribution paperwork.
- Use the Court’s standardized “Consent to Sale” and “Receipt and Release” forms available on the New Jersey Courts website.
- Ensure all heirs use the same escrow distribution instruction form to avoid delays at closing.
- Consult a probate attorney if you’re unsure which route—formal probate, small estate, or nonprobate transfer—applies.