                                 CODE OF VIRGINIA

LIEN FOR ASSESSMENTS; FORECLOSURE (§ 55.1-1966)

A. The unit owners&#8217; association shall have a lien on each condominium unit
for unpaid assessments levied against that condominium unit in accordance with
the provisions of this chapter and all lawful provisions of the condominium
instruments. The lien, once perfected, shall be prior to all other liens and
encumbrances except (i) real estate tax liens on that condominium unit, (ii)
liens and encumbrances recorded prior to the recordation of the declaration, and
(iii) sums unpaid on any first mortgages or first deeds of trust recorded prior
to the perfection of such lien for assessments and securing institutional
lenders. The provisions of this subsection shall not affect the priority of
mechanics&#8217; and materialmen&#8217;s liens.

B. Notwithstanding any other provision of this section, or any other provision
of law requiring documents to be recorded in the miscellaneous lien books or the
deed books in the clerk&#8217;s office of any court, on or after July 1, 1974,
all memoranda of liens arising under this section shall, in the discretion of
the clerk, be recorded in the miscellaneous lien books or the deed books in such
clerk&#8217;s office. Any such memorandum shall be indexed in the general index
to deeds, and such general index shall identify the lien as a lien for
condominium assessments.

C. In order to perfect the lien given by this section, the unit owners&#8217;
association shall file a memorandum verified by the oath of the principal
officer of the unit owners&#8217; association, or such other officer as the
condominium instruments may specify, before the expiration of 90 days from the
time the first such assessment became due and payable. The memorandum shall be
filed in the clerk&#8217;s office of the circuit court in the county or city in
which such condominium is situated. The memorandum shall contain the following:

   1. A description of the condominium unit in accordance with the provisions of
   &#xA7; 55.1-1909.

   2. The name or names of the persons constituting the unit owners of that
   condominium unit.

   3. The amount of unpaid assessments currently due or past due together with
   the date when each fell due.

   4. The date of issuance of the memorandum.
   				The clerk in whose office such memorandum is filed shall record and index
   the memorandum as provided in subsection B, in the names of the persons
   identified in such memorandum as well as in the name of the unit owners&#8217;
   association. The cost of recording such memorandum shall be taxed against the
   person found liable in any judgment enforcing such lien.

D. Any lien perfected pursuant to this section may be enforced by filing a civil
action to conduct a judicial foreclosure in the circuit court in the county or
city where the condominium is or a nonjudicial foreclosure pursuant to
subsections I and J. No foreclosure of any lien perfected under this section
shall be initiated after 120 months from the time when the memorandum of lien
was recorded. The filing of a civil action to enforce any such lien by
foreclosure through judicial means or issuance of notice of nonjudicial
foreclosure under subdivision J 1 shall be regarded as the institution of an
action under this section. Nothing in this subsection shall extend the time
within which any such lien may be perfected.

E. The judgment in an action brought pursuant to this section shall include
reimbursement for costs and attorney fees of the prevailing party. If the unit
owners&#8217; association prevails, such unit owners&#8217; association may also
recover interest at the legal rate for the sums secured by the lien from the
time each such sum became due and payable.

F. When payment or satisfaction is made of a debt secured by the lien perfected
pursuant to subsection C, such lien shall be released in accordance with the
provisions of &#xA7; 55.1-339. Any lien that is not so released shall subject
the lien creditor to the penalty set forth in subdivision B 1 of &#xA7;
55.1-339. For the purposes of that section, the principal officer of the unit
owners&#8217; association, or such other officer as the condominium instruments
may specify, shall be deemed the duly authorized agent of the lien creditor.

G. Nothing in this section shall be construed to prohibit actions at law to
recover sums for which subsection A creates a lien, maintainable pursuant to
&#xA7; 55.1-1915.

H. Any unit owner or purchaser of a condominium unit, having executed a contract
for the disposition of such condominium unit, shall be entitled upon request to
a recordable statement setting forth the amount of unpaid assessments currently
levied against that unit. Such request shall be in writing, directed to the
principal officer of the unit owners&#8217; association or to such other officer
as the condominium instruments may specify. Failure to furnish or make available
such a statement within 10 days of the receipt of such request shall extinguish
the lien created by subsection A as to the condominium unit involved. Such
statement shall be binding on the unit owners&#8217; association, the executive
board, and every unit owner. Payment of a fee not exceeding $10 may be required
as a prerequisite to the issuance of such a statement if the condominium
instruments so provide.

I. The unit owners&#8217; association may conduct a judicial or nonjudicial
foreclosure sale upon a unit against which the unit owners&#8217; association
has perfected one or more liens pursuant to this section if the total sums
secured are in excess of $5,000, exclusive of attorney fees and costs. For
purposes of this section, the unit owners&#8217; association shall have the
power both to sell and convey the unit and shall be deemed the unit
owner&#8217;s statutory agent for the purpose of transferring title to the unit.

J. A nonjudicial foreclosure sale shall be conducted in compliance with the
following:

   1. The unit owners&#8217; association shall give notice to the unit owner
   prior to advertisement required by subdivision 4. The notice shall specify (i)
   the debt secured by the perfected lien; (ii) the action required to satisfy
   the debt secured by the perfected lien; (iii) the date, not less than 60 days
   from the date the notice is given to the unit owner, by which the debt secured
   by the lien must be satisfied; and (iv) that failure to satisfy the debt
   secured by the lien on or before the date specified in the notice may result
   in the sale of the unit. The notice shall further inform the unit owner of the
   right to bring a court action in the circuit court of the county or city where
   the condominium is located to assert the nonexistence of a debt or any other
   defense of the unit owner to the sale.

   2. After expiration of the 60-day notice period provided in subdivision 1, the
   unit owners&#8217; association may appoint a trustee to conduct the sale. The
   appointment of the trustee shall be filed in the clerk&#8217;s office of the
   circuit court in the county or city in which the condominium is located. The
   clerk in whose office such appointment is filed shall record and index the
   appointment as provided in subsection C, in the names of the persons
   identified therein as well as in the name of the unit owners&#8217;
   association. The unit owners&#8217; association, at its option, may from time
   to time remove the trustee and appoint a successor trustee.

   3. If the unit owner meets the conditions specified in this subdivision prior
   to the date of the foreclosure sale, the unit owner shall have the right to
   have enforcement of the perfected lien discontinued prior to the sale of the
   unit. Those conditions are that the unit owner (a) satisfy the debt secured by
   lien that is the subject of the nonjudicial foreclosure sale and (b) pays all
   expenses and costs incurred in perfecting and enforcing the lien, including
   advertising costs and reasonable attorney fees.

   4. In addition to the advertisement required by subdivision 5, the unit
   owners&#8217; association shall give written notice of the time, date, and
   place of any proposed sale in execution of the lien, and shall include the
   name, address, and telephone number of the trustee, by personal delivery or by
   mail to (i) the present owner of the condominium unit to be sold at his last
   known address as such owner and address appear in the records of the unit
   owners&#8217; association, (ii) any lienholder who holds a note against the
   condominium unit secured by a deed of trust recorded at least 30 days prior to
   the proposed sale and whose address is recorded with the deed of trust, and
   (iii) any assignee of such a note secured by a deed of trust provided the
   assignment and address of the assignee are likewise recorded at least 30 days
   prior to the proposed sale. Mailing a copy of the advertisement or the notice
   containing the same information to the owner by certified or registered mail
   no less than 14 days prior to such sale and to the lienholders and their
   assigns, at the addresses noted in the memorandum of lien, by ordinary mail no
   less than 14 days prior to such sale shall be a sufficient compliance with the
   requirement of notice.

   5. The advertisement of sale by the unit owners&#8217; association shall be in
   a newspaper having a general circulation in the locality in which the
   condominium unit to be sold, or any portion of such unit, is located pursuant
   to the following provisions:
   				a. The unit owners&#8217; association shall advertise once a week for four
   successive weeks; however, if the condominium unit or some portion of such
   unit is located in a city or in a county immediately contiguous to a city,
   publication of the advertisement five different days, which may be consecutive
   days, shall be deemed adequate. The sale shall be held on any day following
   the day of the last advertisement that is no earlier than eight days following
   the first advertisement nor more than 30 days following the last
   advertisement.
   				b. Such advertisement shall be placed in that section of the newspaper
   where legal notices appear or where the type of property being sold is
   generally advertised for sale. The advertisement of sale, in addition to such
   other matters as the unit owners&#8217; association finds appropriate, shall
   set forth a description of the condominium unit to be sold, which description
   need not be as extensive as that contained in the deed of trust but shall
   identify the condominium unit by street address, if any, or, if none, shall
   give the general location of the condominium unit with reference to streets,
   routes, or known landmarks. Where available, tax map identification may be
   used but is not required. The advertisement shall also include the date, time,
   place, and terms of sale and the name of the unit owners&#8217; association.
   The advertisement shall set forth the name, address, and telephone number of
   the representative, agent, or attorney who may be able to respond to inquiries
   concerning the sale.
   				c. In addition to the advertisement required by subdivisions a and b, the
   unit owners&#8217; association may give such other further and different
   advertisement as the association finds appropriate.

   6. In the event of postponement of a sale, which postponement shall be at the
   discretion of the unit owners&#8217; association, advertisement of such
   postponed sale shall be in the same manner as the original advertisement of
   sale.

   7. Failure to comply with the requirements for advertisement contained in this
   section shall, upon petition, render a sale of the condominium unit voidable
   by the court.

   8. In the event of a sale, the unit owners&#8217; association shall have the
   following powers and duties:
   				a. Written one-price bids may be made and shall be received by the trustee
   from the unit owners&#8217; association or any person for entry by
   announcement at the sale. Any person other than the trustee may bid at the
   foreclosure sale, including a person who has submitted a written one-price
   bid. Upon request to the trustee, any other bidder in attendance at a
   foreclosure sale shall be permitted to inspect written bids. Unless otherwise
   provided in the condominium instruments, the unit owners&#8217; association
   may bid to purchase the unit at a foreclosure sale. The unit owners&#8217;
   association may own, lease, encumber, exchange, sell, or convey the unit.
   Whenever the written bid of the unit owners&#8217; association is the highest
   bid submitted at the sale, such written bid shall be filed by the trustee with
   his account of sale required under subdivision 10 of this subsection and
   &#xA7; 64.2-1309. The written bid submitted pursuant to this subsection may be
   prepared by the unit owners&#8217; association or its agent or attorney.
   				b. The unit owners&#8217; association may require of any bidder at any
   sale a cash deposit of as much as 10 percent of the sale price before his bid
   is received, which shall be refunded to him if the condominium unit is not
   sold to him. The deposit of the successful bidder shall be applied to his
   credit at settlement, or if such bidder fails to complete his purchase
   promptly, the deposit shall be applied to pay the costs and expenses of the
   sale, and the balance, if any, shall be retained by the unit owners&#8217;
   association in connection with that sale.
   				c. The unit owners&#8217; association shall receive and receipt for the
   proceeds of sale, no purchaser being required to see to the application of the
   proceeds, and apply the same in the following order: first, to the reasonable
   expenses of sale, including reasonable attorney fees; second, to the
   satisfaction of all taxes, levies, and assessments, with costs and interest;
   third, to the satisfaction of the lien for the unit owners&#8217; assessments;
   fourth, to the satisfaction in the order of priority of any remaining inferior
   claims of record; and fifth, to pay the residue of the proceeds to the unit
   owner or his assigns, provided, however, that the association as to such
   residue shall not be bound by any inheritance, devise, conveyance, assignment,
   or lien of or upon the unit owner&#8217;s equity, without actual notice of
   such encumbrance prior to distribution.

   9. The trustee shall deliver to the purchaser a trustee&#8217;s deed conveying
   the unit with special warranty of title. The trustee shall not be required to
   take possession of the condominium unit prior to the sale or to deliver
   possession of the unit to the purchaser at the sale.

   10. The trustee shall file an accounting of the sale with the commissioner of
   accounts pursuant to &#xA7; 64.2-1309 and every account of a sale shall be
   recorded pursuant to &#xA7; 64.2-1310. In addition, the accounting shall be
   made available for inspection and copying pursuant to &#xA7; 55.1-1945 upon
   the written request of the prior unit owner, current unit owner, or any holder
   of a recorded lien against the unit at the time of the sale. The unit
   owners&#8217; association shall maintain a copy of the accounting for at least
   12 months following the foreclosure sale.

   11. If the sale of a unit is made pursuant to this subsection and the
   accounting is made by the trustee, the title of the purchaser at such sale
   shall not be disturbed unless within 12 months from the confirmation of the
   accounting by the commissioner of accounts, the sale is set aside by the court
   or an appeal is filed in the Court of Appeals or granted by the Supreme Court
   and an order is entered requiring such sale to be set aside.

HISTORY: 1974, c. 416, § 55-79.84; 1975, c. 415; 1991, c. 497; 1992, c. 72;
1997, cc. 760, 766; 2000, c. 906; 2004, cc. 778, 779, 786; 2019, c. 712; 2021,
Sp. Sess. I, c. 489; 2024, cc. 55, 349.