How to sell a co-owned property in New Jersey to cover funeral and property tax expenses

Short answer: First identify how the property is owned. If all owners agree, you can list and sell the property and use the proceeds to pay funeral bills and property taxes. If an owner refuses or an owner is deceased and the interest is part of an estate, you may need a court process (partition or probate) to force a sale. Address outstanding mortgages and property tax liens before or at closing. This article explains the common paths under New Jersey law and practical next steps.

Detailed answer

1. Identify ownership type and who has the legal right to sell

Ownership type controls who can sell without court involvement:

• Joint tenants with right of survivorship: When one owner dies, the surviving joint tenant(s) usually own the whole property automatically and can sign to sell. Check the deed for “joint tenants” or “with right of survivorship.”
• Tenants in common: Each owner owns a divisible share. Any co-owner can sell their share, but selling a share does not usually let the buyer occupy or sell the whole property.
• Tenancy by the entirety (married couples): This is a special form in New Jersey that gives spouses full survivorship rights. Both spouses generally must agree to sell.
• Interest held by a decedent: If a deceased owner’s share became part of an estate, the executor or administrator handles the estate’s assets. Selling real estate through an estate can require court involvement or proof of executor authority during probate.

2. If all co‑owners agree

This is the fastest route:

1. Get a professional appraisal or broker market analysis to set price expectations.
2. Agree in writing on how net proceeds will be split and how closing costs, mortgage payoffs, and taxes will be handled.
3. List the property, accept an offer, and close. Use the sale proceeds to pay funeral bills, pay off any mortgage, and satisfy any unpaid property taxes or tax liens at or before closing.

3. If a co‑owner refuses to sell

When co‑owners cannot reach agreement, a co‑owner can file a partition action in New Jersey Superior Court to force a division or sale. A partition action asks the court to either physically divide the property (rare for houses) or order a sale and divide proceeds according to ownership shares. See New Jersey Courts for more on the partition process: NJ Courts — Partition actions.

4. If an owner is deceased

If the deceased owner’s share passed to heirs or to a probate estate, the executor (personal representative) or administrator handles estate assets. Executors often need authority granted by the probate court before selling estate real estate. For basics about probate and an executor’s duties, see the New Jersey Courts probate guide: NJ Courts — Wills & Probate.

5. Priority of funeral expenses and paying property taxes

Funeral bills are claims against a decedent’s estate. In practice, families sometimes pay funeral costs out of joint funds or by agreement among co‑owners. If the decedent’s estate lacks cash, an executor may need to sell estate assets to pay funeral expenses and administrative costs. Stay aware that government liens can attach for unpaid property taxes.

For information on property taxes, tax billing, and how to address unpaid taxes in New Jersey, consult the NJ Division of Taxation and your local county tax collector. The state treasury provides guidance here: NJ Division of Taxation.

6. Mortgage and tax liens that must be paid at closing

If the property has a mortgage, the lender’s payoff will be satisfied from sale proceeds at closing. Unpaid property taxes often create liens that must be cleared for a clean title. Before listing, get a title report or consult a closing attorney/title company so you know what liens must be paid.

7. Practical timeline and costs

• Agreeing and selling cooperatively: Typically 30–90 days from listing to closing, depending on market and mortgage payoff speed.
• Partition litigation: Can take many months to over a year and involves court fees and attorney costs. The court may order sale and deduct litigation costs from proceeds.
• Probate sales: Timeline varies with estate administration; some probate courts allow expedited processes, but expect several months if probate is required.

When to get a lawyer

Consider hiring an attorney if:

• Co‑owners disagree about selling or splitting proceeds.
• An owner is deceased and the estate lacks a clear personal representative.
• There are liens, tax delinquencies, or complex title questions.
• You face a possible partition lawsuit or need to file one.

Helpful Hints

• Gather key documents early: the deed, mortgage statements, property tax bills, any will, and contact information for all co‑owners and heirs.
• Confirm ownership on the recorded deed at the county clerk/registrar’s office or online recorder records.
• Check with the county tax collector to learn exact unpaid property tax amounts, interest, and deadlines.
• Get a title search and preliminary title report before accepting offers to identify liens or encumbrances.
• Consider an intermediary solution—short‑term loans or agreements among co‑owners—to pay urgent funeral bills while arranging sale.
• If time is tight for funeral payments, ask vendors if they will invoice the estate or accept delayed payment pending sale; get agreements in writing.
• Keep careful records of all payments and distributions from sale proceeds to avoid later disputes among co‑owners or heirs.

Useful New Jersey resources

• NJ Courts — Partition actions: https://www.njcourts.gov/selfhelp/partition.html
• NJ Courts — Wills & Probate: https://www.njcourts.gov/selfhelp/willsandprobate.html
• NJ Division of Taxation: https://www.state.nj.us/treasury/taxation/ (contact your county tax collector for local property tax details)

Next practical steps: 1) Determine how title is held by pulling the deed, 2) contact co‑owners to seek an agreement in writing, 3) get a title report and payoff figures for mortgages and taxes, and 4) consult a New Jersey real estate or probate attorney if you encounter refusal to sell, unclear probate authority, or liens that complicate closing.

Disclaimer: This article is educational only and does not constitute legal advice. For advice specific to your situation, consult a licensed New Jersey attorney.