Short answer. Yes. The rule states that the real estate remains charged with a liability to creditors, heirs or other persons for the full two-year period after distribution, notwithstanding any transfers of real estate that may have been made. Selling it does not clear the charge.
What the law says
Such bond and such real estate shall remain charged with a liability to creditors, heirs, or other persons for the full period of two years after such distribution, notwithstanding any transfers of real estate that may have been made.
Rule 74, Section 4 — Liability of distributees and estate. Read the full provision →
The liability follows the land
This is the sentence that surprises people. The rule provides that the bond and the real estate remain charged with a liability to creditors, heirs, or other persons for the full period of two years after the distribution, and then adds notwithstanding any transfers of real estate that may have been made. The charge is therefore attached to the property itself for that period. Heirs who sell quickly after an extrajudicial settlement do not shed the exposure by converting the land into cash, and a buyer does not necessarily take free of the claim.
Why this matters most to buyers
Anyone buying land that has recently passed through an extrajudicial settlement is buying inside a window during which the property remains answerable to unpaid creditors and to heirs who were left out. That is a genuine and identifiable risk rather than a theoretical one, and it has a fixed duration. The sensible steps are to establish when the settlement and distribution actually occurred, work out how much of the two years has run, and price or structure the transaction accordingly rather than discovering the position afterwards.
What an omitted heir or creditor can do
Within the same two years, a person unduly deprived of a lawful participation in the estate may compel the settlement of the estate in the courts. Where the claim is for an outstanding debt or for a participation payable in money, the court may after hearing settle the amount and order how much and in what manner each distributee shall contribute, and may issue execution if circumstances require against the bond provided in the preceding section or against the real estate belonging to the deceased, or both.
After the two years
The provision fixes its own limit. The charge on the bond and on the real estate runs for the full period of two years after distribution, so once that period has passed this particular route closes. That does not mean every conceivable claim is extinguished, since other rules and other periods may govern different kinds of claims. But the specific protection this section gives creditors and omitted heirs, and the specific risk it creates for a buyer, are both bounded by those two years.