72-3-907. Purchases from distributees protected.
72-3-907. Purchases from distributees protected. (1) If property distributed in kind or a security interest in that property is acquired for value by a purchaser from or lender to a distributee who has received an instrument or deed of distribution from the personal representative or is so acquired by a purchaser from or lender to a transferee from the distributee, the purchaser or lender takes title free of rights of any interested person in the estate and incurs no personal liability to the estate or to any interested person, whether or not the distribution was proper or supported by court order or the authority of the personal representative was terminated before execution of the instrument or deed.
(2) This section protects a purchaser from or lender to a distributee who, as personal representative, has executed a deed of distribution to the personal representative distributee, as well as a purchaser from or lender to any other distributee or the distributee's transferee. To be protected under this provision, a purchaser or lender need not inquire as to whether a personal representative acted properly in making the distribution in kind, even if the personal representative and the distributee are the same person, or whether the authority of the personal representative had terminated before the distribution. Any recorded instrument described in this section is prima facie evidence that the transfer was made for value.
(3) For purposes of this section, the term "purchaser" includes any lessee or other person acquiring any interest in the property for value.
History: En. 91A-3-910 by Sec. 1, Ch. 365, L. 1974; R.C.M. 1947, 91A-3-910; amd. Sec. 9, Ch. 52, L. 1981; amd. Sec. 2377, Ch. 56, L. 2009.