I don't know how ownership could be transferred if the deed wasn't changed. I think you need to consult a lawyer to determine whether ownership was legally transferred in 2002, and who were the actual owners of the house at the time of the sale in 2022. Until you have that information, we can't tell you how to report the sale on your tax return, or even whether you have to report it at all.
You omitted some important details, but none of this really matters until you clarify the ownership. Was your father's second wife still living when the house was sold in 2022? If not, when did she pass, and what was done with her share of the house when she passed? You may need to contact her executor or the lawyer who handled her estate.
And who are the "three"?
