In such case as is mentioned in § 8.01-365, when no bond is given for the forthcoming of the property, the court may, before a decision of the rights of the parties, make an order for the sale of the property, or any part thereof, on such terms as the court may deem advisable, and for the proper application of the proceeds. The court may make such orders and enter such judgment as to costs and all other matters as may be just and proper.
§ 8.01-366.Sale of property when no forthcoming bond is given.
Chapter 12. Interpleader; Claims of Third Parties to Property Distrained or Levied On, · Article 2. Claims of Third Parties to Property Distrained or Levied On · Last amended 1977 · Last verified July 16, 2026
In one sentenceLets the court order an early sale of disputed, levied property before it even decides who owns it, whenever no bond has been posted to keep the property available, so the proceeds can be held and properly applied once the ownership question is resolved.
Full Text of § 8.01-366
Plain-English Summary
Disputed property does not always wait well for a court’s ruling, especially if nobody has posted a bond to keep it available. When that happens in a case under § 8.01-365, this section lets the court order a sale before it settles who owns the property, on whatever terms the court finds advisable, so the proceeds can be properly held and eventually distributed.
The court keeps broad authority over the process, including the power to enter judgment on costs and any other matter that fairness requires, even while the ownership question remains open.
Frequently Asked Questions
When can the court order an early sale of levied property under this section?
When no bond is given for the forthcoming of the property in a case under § 8.01-365, before the court has decided the rights of the parties.
Why would a court sell property before ruling on ownership?
So the court can apply the proceeds properly once the parties’ rights are decided, rather than leaving the property itself in limbo.
Can the court set its own terms for the sale?
Yes, on such terms as the court may deem advisable.
Does the court retain authority over costs in this situation?
Yes. The court may make such orders and enter such judgment as to costs and all other matters as may be just and proper.
What section does this early-sale provision depend on?
Section 8.01-365, which sets up the third-party claim procedure this sale mechanism operates within.
Amendment History
Code 1950, § 8-228; 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
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