Chap. 350.—An ACT to amend and reenact Section 5397 of the Code of Virginia,
relating to when heir or devisee liable for value of real estate; when pur-
chasers not liable; when sale within year valid against creditors; and to
extinguish any rights of creditors in certain sales heretofore made. [H 426]

Approved March 31, 1948

Be it enacted by the General Assembly of Virginia:

1. That section fifty-three hundred ninety-seven of the Code of
Virginia be amended and reenacted as follows:

Section 5397. When heir or devisee liable for value of real estate;
when purchasers not liable ; when sale within year valid against creditors.
—Any heir or devisee who shall sell and convey any real estate, which
by this chapter is made assets, shall be liable to those entitled to be paid
out of the said assets, for the value thereof, with interest ; in such case, the
estate conveyed shall not be liable if the conveyance was bona fide, and
at the time of such conveyance no suit shall have been commenced for
the administration of the said assets nor any reports have been filed as
aforesaid of the debts and demands of those entitled. But no alienation
of such estate, made by an heir or devisee, within one year after the
death of the testator or intestate, shall be valid against creditors of such
testator or intestate, although no such suit shall have been commenced
or report of debts and demands filed within said year, except that any
alienation of such estate made within one year after the death of the
testator or intestate shall be valid against creditors of such testator or
intestate, if such estate be sold and conveyed under and pursuant to
decrees of a court of competent jurisdiction in a proper suit for partition,
sale of lands of persons under disability, or other judicial sale, and the
net proceeds of sale thereof be paid to a Special Commissioner appointed
by the court for the purpose.

The net proceeds of sale shall be the purchase price for such estate
including money, deferred purchase money obligations, and other securi-
ties, remaining after the payment of the expenses of sale ordinarily
paid by the vendor in sales of such estates and the discharge of such
indebtedness and encumbrances for which, by law, such estate is pri-
marily liable.
The net proceeds so paid shall be held by the Special Commissioner
appointed by the court for the purpose, in lieu and in place of such estate
subject to the claims of creditors of the testator or intestate in the same
manner and to like extent in every respect as such estate would have been
if not sold, for a period ending no sooner than one year after the death
of the testator or intestate, at which time, if no claim shall have been
made or asserted against the net proceeds, they shall be distributed by the
Special Commissioner to those entitled thereto in proportion to the inter-
est of each in such estate; provided that as to any sale made in conformity
with the provisions of this section as amended a purchaser of any land
so sold shall not be required to see to the application of the purchase
money.

The Special Commissioner who receives and holds such net pro-
ceeds shall give such bond as may be required by the court appointing
him.