A. For purposes of this section:
"Net proceeds" means the purchase price for the real estate, including money, deferred purchase money obligations, and other securities, remaining after the payment of the expenses of sale ordinarily paid by the seller in sales of such real estate and the discharge of indebtedness and encumbrances that the real estate is primarily liable for by law.
B. Any sale and conveyance of real estate that is an asset for the payment of a decedent's debts or lawful demands against his estate pursuant to § 64.2-532 made within one year after the death of the decedent is valid against creditors of such decedent, if such real estate is sold and conveyed pursuant to a decree of a court of competent jurisdiction in an action for partition, sale of lands of persons under a disability, or other judicial sale, and the net proceeds of sale are paid to a special commissioner appointed by the court.
C. The special commissioner shall hold the net proceeds paid to him in lieu of the real estate subject to the claims of the decedent's creditors in the same manner and to the same extent as such real estate would have been if not sold until at least one year after the death of the decedent. If no claim has been asserted against the net proceeds, the special commissioner shall distribute the net proceeds to those creditors entitled thereto in proportion to their interest in the real estate upon (i) the expiration of the one-year period or (ii) at any time within the one-year period upon posting bond with such surety as may be prescribed by the court to secure any claims against the real estate or net proceeds.
D. A purchaser of any real estate sold and conveyed in accordance with this section is not required to see to the application of the purchase money.
E. The special commissioner who receives and holds such net proceeds or refunding bond shall give such bond as required by the court appointing him.
Code 1950, § 64-173.1; 1968, c. 656, § 64.1-184; 1996, c. 65; 2012, c. 614.
Structure Code of Virginia
Title 64.2 - Wills, Trusts, and Fiduciaries
Chapter 5 - Personal Representatives and Administration of Estates
§ 64.2-500. Grant of administration with the will annexed
§ 64.2-501. Oath of executor or administrator with the will annexed
§ 64.2-502. Grant of administration of intestate estate
§ 64.2-503. Oath and bond of administrator of intestate estate
§ 64.2-504. Bond of executor or administrator
§ 64.2-505. When security not required
§ 64.2-506. When letters of administration and order for obtaining probate in due form are required
§ 64.2-507. Clerks to deliver statement of responsibilities
§ 64.2-510. Affidavit relating to real estate of intestate decedent
§ 64.2-511. Powers of executor before qualification
§ 64.2-513. Effect of death, resignation, or removal of sole executor
§ 64.2-514. Duty of every personal representative
§ 64.2-515. Duty of fiduciaries as to joint accounts
§ 64.2-516. Duties of fiduciaries as to certain obligations of the United States
§ 64.2-518. When personal representative may renew obligation of decedent
§ 64.2-520.1. Action for damages from legal malpractice concerning estate planning
§ 64.2-520.2. Reliance on certificate of qualification of a personal representative
§ 64.2-522. Personal representatives to pay over sale proceeds and rents to persons entitled
§ 64.2-523. Personal representative may execute deed pursuant to written contract of decedent
§ 64.2-524. Validation of certain conveyances by foreign executor
§ 64.2-525. Debtor's appointment as executor
§ 64.2-526. What personal estate to be sold; use of proceeds
§ 64.2-527. Estate held for another's life; inclusion in personal estate
§ 64.2-528. Order in which debts and demands of decedents to be paid
§ 64.2-530. Lien acquired during lifetime of decedent not affected
§ 64.2-531. Nonexoneration; payment of lien if granted by agent
§ 64.2-532. Real estate of decedent as assets for payment of debts
§ 64.2-533. Administration of assets for payment of debts
§ 64.2-537. Action to enforce claim of less than $100; notice
§ 64.2-538. Lien acquired during lifetime of decedent not affected
§ 64.2-540. Apportionment required
§ 64.2-541. Recovery by executor when part of estate not in his possession
§ 64.2-542. Transfers not required until tax ascertained or security given
§ 64.2-543. Contrary provisions of will or other instrument to govern
§ 64.2-544. Construction of direction to pay all taxes imposed on account of testator's death
§ 64.2-545. Transfer of assets to administrator de bonis non; administration of assets
§ 64.2-546. Action against representative of executor for waste
§ 64.2-547. Revival of judgment by administrator de bonis non
§ 64.2-548. Action against surety of personal representative; procedure
§ 64.2-549. Liability of personal representative or his surety
§ 64.2-550. Proceedings for receiving proof of debts by commissioners of accounts
§ 64.2-551. Account of debts by commissioners of accounts
§ 64.2-552. How claims filed before commissioners of accounts; tolling of limitations period
§ 64.2-553. When court to order payment of debts
§ 64.2-554. When distribution may be required; refunding bond
§ 64.2-555. When fiduciaries are protected by refunding bonds
§ 64.2-557. Form for notice to show cause under § 64.2-556
§ 64.2-558. Distribution to persons standing in loco parentis to certain beneficiaries