New Jersey no longer has an estate tax for people who died in 2018 or later, but it still has an inheritance tax, and that tax shapes how an inherited house gets sold. Even when no tax is owed, a title company will usually want a waiver before the house can be transferred. Here is how it works.
Authority to sell comes from the Surrogate
In New Jersey, wills are probated through the County Surrogate's office. The executor named in the will receives letters testamentary. If there is no will, an administrator is appointed and receives letters of administration. Those letters give the executor or administrator authority to sign for the estate, and the title company will ask to see them. A house held as tenants by the entirety with a surviving spouse passes directly to the spouse and is handled differently.
Who owes inheritance tax
New Jersey sorts beneficiaries into classes. Class A beneficiaries, which include a spouse or civil union partner, children, stepchildren, grandchildren and parents, are exempt. Class C, which includes siblings and sons- and daughters-in-law, pays tax on amounts over $25,000. Class D, essentially everyone else, pays at higher rates from the first dollar. Charities and certain other organizations fall into Class E and are exempt. So whether tax is due depends entirely on who inherits the house.
Why a tax waiver matters
New Jersey real estate generally cannot be transferred out of an estate until the state is satisfied about inheritance tax, which is done by issuing a tax waiver. When every beneficiary is Class A and no tax is due, the executor, administrator or surviving joint tenant can file an Affidavit for Real Property Tax Waiver (Form L-9) instead of a full return, and the Division of Taxation issues the waiver. When any beneficiary is Class C or D, a full inheritance tax return (Form IT-R) is usually required, and the waiver follows once the tax is resolved. Title companies routinely require the waiver before closing, so start the paperwork early.
Selling costs to plan for
In New Jersey the seller pays the Realty Transfer Fee. As of July 10, 2025, sellers of residential property over $1 million also pay the Graduated Percent Fee, which used to be the buyer's mansion tax, at rates from 1% up to 3.5% depending on price. Most inherited houses in Ocean and Monmouth counties fall below that threshold, but it is worth checking. Property taxes are prorated at closing.
Selling an inherited house to us
We buy inherited houses in New Jersey as-is, including ones still full of belongings, and we work with the estate's attorney and title company on the letters and waiver timing. We buy throughout Lakewood, Ocean and Monmouth counties and the surrounding area. You choose the closing date.