New Jersey Statutes Appendix - Former Title 3A Administration of Estates Decedents and Others 3A § 34-9

In any proceedings for the sale of real estate under authority of this chapter, the court may ascertain the nature and amount of the encumbrances upon such real estate, including taxes, assessments and water rents chargeable against such real estate, and may direct the sale to be made free and clear of all encumbrances, and direct such encumbrances to be paid out of the proceeds of the sale.

If it shall appear to the satisfaction of the court that the income from the real estate sought to be sold has been insufficient to pay the taxes, assessments and water rents thereon, and that the person owning a vested estate in such real estate, whether a life tenant or otherwise, has borrowed money to pay such taxes, assessments or water rents, and that such debt remains unpaid at the time of the sale, the court may direct the debt to be paid out of the proceeds of the sale, if it appears to be equitable so to do.

No encumbrances, other than taxes, assessments or water rents, shall be affected or the lien thereof cut off by a sale under authority of this chapter, unless the owner thereof is made a party to the action for the sale.