                                 CODE OF VIRGINIA

POWERS AND DUTIES OF TRUSTEE IN EVENT OF SALE UNDER OR SATISFACTION OF DEED OF
TRUST (§ 55.1-324)

A. In the event of sale under a deed of trust, the trustee shall have the
following powers and duties in addition to all others:

   1. Written one-price bids may be made and shall be received by the trustee
   from the beneficiary or any other person for entry by announcement of the
   trustee 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. Whenever the
   written bid of the beneficiary is the highest bid submitted at the sale, such
   document shall be filed by the trustee with his account of sale required under
   &#xA7; 64.2-1309. The written bid submitted pursuant to this subsection may be
   prepared by the beneficiary, its agent, or its attorney.

   2. The trustee may require of any bidder at any sale a cash deposit of as much
   as 10 percent of the sale price, unless the deed of trust specifies a higher
   or lower maximum, which may be done by the words &#8220;bidder&#8217;s deposit
   of not more than ______ dollars may be required&#8221; or similar words,
   before his bid is received, which shall be refunded to the bidder unless the
   property is sold to him, otherwise to be applied to his credit in settlement
   or, should he fail to complete his purchase promptly, to be applied to pay the
   costs and expense of sale and the balance, if any, to be retained by the
   trustee as his compensation in connection with that sale.

   3. The trustee shall receive and receipt for the proceeds of sale, account for
   the same to the commissioner of accounts pursuant to &#xA7; 64.2-1309 and
   apply the same, first, to discharge the expenses of executing the trust,
   including a reasonable commission to the trustee; secondly, to discharge all
   taxes, levies, and assessments, with costs and interest if they have priority
   over the lien of the deed of trust, including the due pro rata thereof for the
   current year; thirdly, to discharge in the order of their priority, if any,
   the remaining debts and obligations secured by the deed, and any liens of
   record inferior to the deed of trust under which sale is made, with lawful
   interest; and, fourthly, the residue of the proceeds shall be paid to the
   grantor or his assigns, provided, however, that the trustee as to such residue
   shall not be bound by any inheritance, devise, conveyance, assignment, or lien
   of or upon the grantor&#8217;s equity, without actual notice thereof prior to
   distribution, and provided further that such order of priorities shall not be
   changed or varied by the deed of trust. The trustee&#8217;s deed shall show
   the trustee&#8217;s mailing address.

B. Upon discharge, other than by sale by the trustee, of all debts, duties, and
obligations imposed by the deed upon the grantor, including any expenses
incurred preparatory to sale, then upon the grantor&#8217;s request the trustee
shall execute and deliver a good and sufficient deed of release at the
grantor&#8217;s own proper costs and charges.

HISTORY: 1979, c. 12, § 55-59.4; 1997, c. 842; 1998, c. 610; 2010, c. 417;
2019, c. 712.