                                 CODE OF VIRGINIA

RELEASES MADE BY COURT; COSTS AND ATTORNEY FEES (§ 55.1-344)

A. Any person who owns or has any interest in real estate or personal property
on which an encumbrance as described in &#xA7; 55.1-339 exists may, after 20
days&#8217; notice to the person entitled to such encumbrance, apply to the
circuit court of the county or city in which such encumbrance is recorded to
have the same released or discharged. Upon proof that the encumbrance has been
paid or discharged or upon a finding by the court that more than 15 years have
elapsed since the maturity of the lien or encumbrance, raising a presumption of
payment that is not rebutted at the hearing, such court shall order the clerk to
record a certificate of satisfaction or a certificate of partial satisfaction
that, when so recorded, shall operate as a release of such encumbrance.
			All releases made prior to June 24, 1944, by any court under this section
upon such presumption of payment so arising and not rebutted shall be validated.

B. If the court finds that the person entitled to such encumbrance cannot with
due diligence be located, and that notice has been given such person in the
manner provided by &#xA7; 8.01-319 or 55.1-348, or that tender has been made of
the sum due thereon but has been refused for any reason by the party to whom
due, the court may in its discretion order the sum due to be paid into court, to
be there held as provided by law, and to be paid upon demand to the person
entitled thereto. The court shall order the same to be recorded as provided in
subsection A, and such certificate of satisfaction or certificate of partial
satisfaction shall operate as a release of the encumbrance.

C. Upon a finding by the court that the holder of a mortgage or deed of trust
that has been fully paid or discharged has unjustifiably and without good cause
failed or refused to release such mortgage or deed of trust, the court may order
that costs and reasonable attorney fees be paid to the petitioning party. This
subsection shall not preclude a separate action by the petitioning party for
actual damages sustained by reason of such failure or refusal to release the
encumbrance.

HISTORY: Code 1919, § 6456; 1926, p. 81; 1930, p. 70; 1932, p. 121; 1944, p.
199; Code 1950, § 55-66.5; 1956, c. 426; 1975, c. 469; 1987, c. 604; 1992, c.
532; 1999, c. 66; 2006, c. 907; 2019, c. 712.