3B:14-62 Abandonment of real property may be authorized
A fiduciary of or any person interested in an estate or a trust may apply to the court for a judgment or order directing the fiduciary to abandon any improved or unimproved real property that is an asset of the estate or trust and, which because of liens, encumbrances, the absence or lack of revenue, or for other reasons, does not have a value worth protecting, and that it is for the best interests of persons having an interest in the estate or trust that the real property be abandoned.
3B:14-63. Directions of court when abandonment ordered If the fiduciary is ordered to abandon real property:
a. The court may direct the fiduciary to refrain from
(1) Paying any arrearages of real property taxes and assessments and those thereafter assessed,
(2) Paying water rents or charges,
(3) Paying arrearages in mortgage principal and interest and those thereafter becoming due,
(4) Making repairs to or maintaining any improvements upon the real property,
(5) Keeping the real property or any improvements thereon insured against fire or other loss and liability or as the court may direct;
b. The court may direct that the fiduciary may, if a buyer can be found, convey the real property for a nominal consideration or no consideration so as to avoid liability arising to the fiduciary or to the estate or trust.
L.1981, c. 405, s. 3B:14-63, eff. May 1, 1982.3B:14-64. Order approving abandonment of real property by fiduciary and authorizing conveyance of title
Where it appears that a fiduciary in good faith and in the exercise of a reasonable discretion has abandoned real property by refraining from paying real property taxes, assessments, water rents or charges, mortgage principal and interest, making repairs or improvements to the property, and that because of the liens, encumbrances, the absence or lack of revenues or other reasons the real property did not have a value worth protecting and that it was advisable for the best interests of those interested in the estate or trust to abandon the real property, or that as a result of an abandonment, the fiduciary has been divested of title to or right of possession of the real property by foreclosure of a mortgage or the enforcement of any other lien or encumbrance, the court may ratify and approve the abandonment of the real property upon terms and conditions as it may deem proper. If the fiduciary still has title to the real property, the court may authorize the fiduciary to convey all right, title and interest therein for a nominal consideration or no consideration in order to avoid liability which might arise by reason of continued ownership of the property.
3B:14-65. Public liability after abandonment but before being divested of title
Whenever a fiduciary, trust or estate abandons any real property pursuant to this article, the fiduciary, trust or estate shall remain liable for injury or damage to persons or property arising out of the ownership of the real property notwithstanding the abandonment, until the fiduciary, trust or estate has divested itself or has been divested of title thereto.