Short answer — the basic path of proceeds

If a house owned by your father is sold after his death, the sale proceeds flow first to whoever has legal authority over the property (an owner living on title, a surviving joint owner, a trustee, or a personal representative under probate). Before anyone gets distributed money, liens and valid debts (mortgage, taxes, contractor liens) typically get paid. Then estate administration costs and valid creditor claims are paid. Any remaining net proceeds go to the person or entity entitled to them under the deed, trust, will, or New Jersey intestacy rules.

Step-by-step: How to find exactly where the sale proceeds will go

1. Confirm who owns the house right now.

   Start with the county recorder or county clerk’s office where the property is located. Pull the deed and the chain of title. Look for words like “joint tenants with right of survivorship,” “tenants by the entirety,” or a transfer-on-death / beneficiary deed. If the house is owned in joint tenancy or tenants by the entirety, ownership may automatically pass to the surviving owner and the sale proceeds will go to that survivor rather than to the estate.

2. Check for a trust, beneficiary deed, or joint account.

   If the property is held in a living trust, the successor trustee controls sale and distribution under the trust terms and may avoid probate entirely. If a transfer-on-death/beneficiary deed exists (if applicable in the jurisdiction), the named beneficiary receives the property on the owner’s death. These instruments override intestacy and change where proceeds go.

3. If the house goes through probate, check the Surrogate’s Court files.

   When the estate is in probate, the personal representative (executor/administrator) has the legal duty to collect assets, pay debts, and distribute the remainder to beneficiaries. The Surrogate’s Court docket in the county where your father lived will show filings such as the petition for probate, letters testamentary or letters of administration (proof of authority), inventories, accountings, and a final distribution schedule. You can contact the county Surrogate or view public probate dockets to see what has been filed. New Jersey Courts: https://www.njcourts.gov/courts/surrogates.

4. Review the closing statement for any sale.

   When the house actually sells, the closing statement (often called a HUD-1 or Closing Disclosure) lists each payment out of the sales price: mortgage payoff, title and recording fees, real estate commissions, property taxes, municipal liens, mechanic’s liens, and escrow holdbacks. The net proceeds figure shows what remains. If the sale is handled by the personal representative, the closing statement and the estate accounting should show how that net was applied.

5. Find out whether creditors or taxes must be paid first.

   Under New Jersey estate administration practices, valid debts and liens must be satisfied before distributions to heirs or beneficiaries. That includes mortgage liens, property tax liens, and any successful creditor claims against the estate. The personal representative must follow statutory procedures for notice to creditors and for paying allowable claims.

6. Ask the personal representative for an accounting.

   If you are a beneficiary or an interested party, you can request (and in many cases demand) an accounting from the personal representative that documents receipts, expenses, debts paid, and distributions proposed. If the personal representative refuses or the accounting looks wrong, you may ask the Surrogate’s Court about filing objections or petitioning for instructions or removal.

7. Look up intestacy rules if there is no will.

   If your father left no will and the property did not pass automatically by title or trust, New Jersey’s intestate succession rules determine who inherits the net proceeds. These rules govern how estate assets divide among a surviving spouse, children, parents, siblings, and others. For guidance on the governing statute sections for administration of estates in New Jersey, see Title 3B (Administration of Estates) of the New Jersey statutes: https://www.njleg.state.nj.us/ (search Title 3B).

8. When to get an attorney involved.

   If you suspect the personal representative is mishandling funds, if accounting is incomplete, if there’s a title dispute, or if you need to enforce creditor or beneficiary rights, consult a New Jersey probate or real estate attorney. An attorney can help subpoena records, file objections in Surrogate’s Court, or bring actions to enforce or challenge distributions.

Common scenarios and what they mean for proceeds

• House held jointly with right of survivorship: Surviving joint owner takes ownership automatically; sale proceeds go to that survivor after liens.
• House in a trust: Trustee sells and distributes according to the trust terms; probate usually not involved.
• House owned solely by decedent and sold by personal representative: Sale proceeds go to the estate, debts and administration costs paid first, then distributed per will or intestacy rules.
• Pending mortgage or liens: The lender or lienholder will be paid from sale proceeds at closing unless a separate agreement exists.

How to practically confirm the flow of funds — a checklist you can use

1. Obtain the recorded deed and any recorded beneficiary or trust documents from the county clerk/registry.
2. Ask for a title search or purchase a title report to see liens and encumbrances.
3. Contact the named executor or trustee and request copies of any probate filings, letters of administration, trust documents, and the closing statement for any sale.
4. Visit the Surrogate’s Court docket in the county where your father lived to see probate filings or request public records from the Surrogate’s office. New Jersey Courts Surrogates information: https://www.njcourts.gov/courts/surrogates.
5. If you are a beneficiary, ask for an accounting in writing. If you are a creditor, file a claim if required by the Surrogate’s notice procedure.

Helpful hints

• Keep documents organized: deed, title report, will, trust, closing statements.
• Get the full closing statement — it shows exactly who was paid and why.
• Look up the county Surrogate’s rules online before visiting so you know what records are public and how to request them.
• If the personal representative says proceeds were distributed, ask for transaction evidence (bank statements or checks) tied to the estate account.
• Remember that even if a property sells quickly, distribution often waits until creditor claims and administrative costs are resolved.
• Be cautious dealing with estate funds — distributions made improperly can create personal liability for the personal representative.