3B:23-7 - Protection of purchaser from or lender to distributee - New Jersey Statutes

3B:23-7.  Protection of purchaser from or lender to distributee    If property distributed in kind or a security interest therein is acquired for value by a purchaser from or lender to a distributee who has received an instrument or deed of distribution from the personal representative, or is so acquired by a purchaser from or lender to a transferee from the distributee, the purchaser or lender takes title free of rights of any interested person in the estate and incurs no personal liability to the estate, or to any interested  person, whether or not the distribution was proper or supported by court order  or the authority of the personal representative was terminated before execution  of the instrument or deed.  This section protects a purchaser from or lender to  a distributee who, as personal representative, has executed a deed of distribution to himself, as well as a purchaser from or lender to any other distributee or his transferee.  To be protected under this provision, a purchaser or lender need not inquire whether a personal representative acted  properly in making the distribution in kind, even if the personal representative and the distributee are the same person, or whether the authority of the personal representative had terminated before the distribution.  Any recorded instrument described in this section on which a State documentary fee is noted pursuant to section 3 of P.L.1968, c. 49 (C. 46:15-7) shall be prima facie evidence that the transfer was made for value.

     L.1981, c. 405, s. 3B:23-7, eff. May 1, 1982.