The proceeds received under the preceding provisions of this article or under Article 9 (§ 8.01-81 et seq.) of this chapter, from the sale or division of real estate of a person under a disability or so much thereof as may remain at such person's death, if such person continue until death incapable from any cause of making a will, shall pass to those who would have been entitled to the land if it had not been sold or divided.
§ 8.01-77.What proceeds of sale to pass as real estate.
Chapter 3. Actions · Article 8. Actions for the Sale, Lease, Exchange, Redemption and Other Disposition of · Last amended 1977 · Last verified July 16, 2026
In one sentenceSection 8.01-77 preserves the character of unspent sale or division proceeds belonging to a person under a disability as real estate, so that whatever remains at that person’s death passes to the people who would have inherited the land itself, provided the person never regained capacity to make a will.
Full Text of § 8.01-77
Plain-English Summary
This section applies a form of equitable conversion in reverse. Ordinarily, once land is sold or divided, the proceeds become personal property. But when the land belonged to a person under a disability and was sold or divided under this article or under the partition provisions of Article 9, this section keeps that conversion from stripping the property of its identity as real estate for inheritance purposes.
The rule turns on capacity at death. If the person under a disability remains incapable, from any cause, of making a will all the way until death, whatever proceeds remain pass to the people who would have taken the land itself had it never been sold or divided — not to whoever the law would otherwise treat as entitled to personal property.
Frequently Asked Questions
What happens to leftover sale proceeds if the disabled person dies still incapable of making a will?
They pass to the people who would have been entitled to the land had it never been sold or divided — the proceeds keep the character of real estate rather than converting to personal property for inheritance purposes.
Does this section apply to proceeds from a partition sale?
Yes. It covers proceeds from the sale or division of real estate under the preceding provisions of Article 8 or under Article 9’s partition provisions.
What if the person under a disability regains capacity before death?
The section’s protection depends on the person remaining incapable of making a will “until such person’s death.” If capacity is regained, this special rule for passing proceeds as real estate no longer applies.
Does this rule cover the full sale price, or only what’s left?
Only “so much thereof as may remain” at the person’s death — whatever proceeds have not already been spent or distributed.
Why does it matter whether the proceeds pass as real estate or personal property?
The people entitled to inherit real estate and the people entitled to inherit personal property are not always the same under the law of descent and distribution; this section makes sure the disabled person’s heirs to the land are not cut out because the land was converted to money.
Amendment History
Code 1950, § 8-689; 1952, c. 360; 1968, c. 66; 1977, c. 617.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
Also known as: equitable conversion virginia proceeds of sale8.01-77 virginiaproceeds pass as real estate virginia disabled personinheritance of sale proceeds incapable of making will virginia