When property, the sale of which is indemnified, sells for more than enough to satisfy the execution, attachment, or distress warrant under which it is taken, the surplus shall be paid by the officer into the court where the indemnifying bond is required to be returned, or as such court may direct. The court wherein the surplus is held may make such order for the disposition thereof, either temporarily until the question as to the title of the property sold is determined, or absolutely, as in respect to the rights of those interested may seem to it proper.
§ 8.01-373.When property sells for more than claim, how surplus paid.
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 sentenceDirects that when indemnified property sells for more than needed to satisfy the underlying execution, attachment, or distress warrant, the officer pays the leftover money into the court where the indemnifying bond is required to be returned, which then controls the surplus either provisionally or once the parties’ rights are settled.
Full Text of § 8.01-373
Plain-English Summary
When levied property sells for more than the underlying debt requires, that leftover money still needs somewhere to go, and this section provides the answer. The officer pays the surplus into the court where the indemnifying bond is required to be returned under § 8.01-368, or wherever else the court directs.
The court holding that surplus is not required to disburse it right away. It can order the money held temporarily while the title dispute over the property continues, or it can make an absolute disposition once the parties’ respective rights are settled — whichever approach the interests of those involved call for.
Frequently Asked Questions
What happens to sale proceeds beyond what is needed to satisfy the debt?
The surplus is paid by the officer into the court where the indemnifying bond is required to be returned, or as such court may direct.
Can the court hold the surplus temporarily rather than disburse it right away?
Yes. The court may order its disposition temporarily until the question of title is determined, or absolutely, as respects the rights of those interested.
Which sales does this section cover?
Sales of property whose sale is indemnified that sells for more than enough to satisfy the execution, attachment, or distress warrant under which it was taken.
Who decides how the surplus is ultimately divided?
The court, based on its assessment of the rights of the parties interested.
Where does the surplus get deposited?
Into the court where the indemnifying bond is required to be returned under § 8.01-368, or as that court directs.
Amendment History
Code 1950, § 8-235; 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 surplus proceeds levied property saleexcess sale proceeds execution virginia