By Thomas B. Wiggin, Partner
twiggin@hdrbb.com
201.649.8090
If you’ve ever had a listing tied to an estate—or a client who inherited property—you know how tricky these transactions can get. Whether you’re working a co-op sale in Manhattan or a single-family home in Montclair, estate-related deals come with legal requirements that can delay closings or cause contracts to fall apart.
This quick guide is built for residential brokers in both New York and New Jersey to help you flag potential issues early—and know when to bring in legal support.
Selling Property from an Estate: What’s Required Before You Can Close
In both NY and NJ, before an estate property can be legally sold, several documents need to be in place:
- Certified Death Certificate
- “Letters Testamentary” or “Letters of Administration”
- Issued by the Surrogate’s Court, these authorize the executor or administrator to sign a contract and sell the property.
- Affidavit of Debts and Domicile
- Required by co-op boards, title companies, or buyers—this helps confirm legal residency and that debts are being handled.
- Estate Undertaking and IRS Indemnity
- Confirms all debts, liens, and taxes have been paid or accounted for.
- State Tax Releases and Waivers
- New York: You will need the ET-117 before closing to clear the estate from any state tax obligations.
- New Jersey: While the process is often a bit simpler, title companies require the Executor or Administrator to represent and warrant that all debts have or will be paid.
If any of these steps are missing, you’re looking at delays—or worse, a lost deal.
You Can Help Your Clients Avoid Probate Altogether. Recommend a Trust
Here’s something both NJ and NY brokers can bring to the table: educating clients on the value of putting property into a trust.
- In both states, when real estate is held in a properly drafted revocable trust, it bypasses probate. That means:
- No waiting on the courts
- No need for Letters Testamentary or Letters of Administration
- The trustee can list and sell the property immediately
- In New Jersey, this can help families avoid the multi-step process of getting state tax waivers before closing.
- In New York, it’s especially helpful for owners—cutting through red tape and keeping deals moving.
All that’s required is transferring the deed (stock certificate or co-ops) along with appropriate transfer tax filings for the city, county and state.
How I Partner with Brokers in NY & NJ
I work with residential brokers across New York and New Jersey to keep estate-related sales on track—and to help your clients make smart decisions about how to hold title and plan ahead.
If you’re working on a deal involving an estate, or have clients thinking about long-term planning, I’m happy to consult—formally or behind the scenes—to keep things moving.