If the party by or for whom the land is claimed in the suit be a person under a disability, such value shall be deemed to be real estate, and be disposed of as the court may consider proper for the benefit of the persons interested therein.
§ 8.01-177.When such value to be deemed real estate.
Chapter 3. Actions · Article 15. Improvements · Last amended 1977 · Last verified July 16, 2026
In one sentenceIf the person who claims the land in the suit is under a legal disability, the value the defendant pays for a relinquished estate is treated as real estate itself and disposed of as the court thinks best serves the interested parties.
Full Text of § 8.01-177
Plain-English Summary
Section 8.01-177 protects a plaintiff who cannot manage funds personally — someone under a disability, such as a minor or a person under an incapacity recognized by law — when the estate has been relinquished under Sections 8.01-175 and 8.01-176 in exchange for a payment. Rather than that payment being treated as ordinary cash the disabled party could spend or lose control of, the statute deems the value to be real estate.
Treating the payment as real estate rather than personal funds changes how it must be handled. Real estate belonging to a person under a disability carries its own protections and oversight under Virginia law, and Section 8.01-177 leaves it to the court to dispose of that value as it considers proper for the benefit of everyone with an interest in it — the disabled party and anyone claiming through that person.
Frequently Asked Questions
When does Section 8.01-177 apply?
When the party claiming the land in the suit is under a disability.
What does it mean that the payment is “deemed to be real estate”?
It is treated legally as real property rather than as ordinary money, carrying the protections that apply to real estate owned by a person under a disability.
Who decides how that value gets disposed of?
The court, as it considers proper for the benefit of the persons interested.
Why treat the payment as real estate instead of cash?
To give it the added protections that apply to real property owned by someone under a disability, rather than leaving it as unrestricted funds.
Does this section apply outside the relinquishment procedure in Section 8.01-175?
No, it addresses the value ascertained and paid under the relinquishment procedure in Sections 8.01-175 and 8.01-176.
Amendment History
Code 1950, § 8-855; 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: virginia disability real estate proceeds protection8.01-177 value deemed real estateminor incapacitated party land sale proceeds virginiacourt disposition of relinquished estate valueprotecting disabled plaintiff land payment virginia