                                 CODE OF VIRGINIA

HOW PROCEEDINGS INSTITUTED; PARTIES; PROCEDURE GENERALLY; TITLE ACQUIRED;
DISPOSITION OF SURPLUS PROCEEDS OF SALE (§ 58.1-3967)

Proceedings under this article for the appointment of a special commissioner
under § 58.1-3970.1 or the sale of real estate on which county, city, or town
taxes are delinquent shall be by a complaint, filed in the circuit court of the
county or city in which such real estate is located, to subject the real estate
to the lien for such delinquent taxes.
		Except as modified by statute, such proceedings shall be conducted in
accordance with any requirements arising from statute or case law for a
creditor&#8217;s equitable claim to effect the sale of real estate to enforce a
judgment lien. Any person or entity with an interest in such real estate,
including a lienor, a person with a claim of title, or the beneficiary and
trustees under a deed of trust, shall be named as a party defendant.
		Any party served by publication may petition to have the case reheard pursuant
to § 8.01-322, but only for good cause shown, and only within 90 days of entry
of the confirmation of sale.
		After filing of suit and a lis pendens, any party who thereafter acquires an
interest in the delinquent real estate, including a lienor or party with a claim
of title, shall not be deemed a necessary party, but shall be permitted to
intervene in the proceedings to file his claim. Failure to file such a claim
shall bar any such claim. The title conveyed to the purchaser at the judicial
sale shall be held to bar any disabilities of parties defendant, and shall be
free of all claims of any creditor, person, or entity, including those claims of
beneficiaries under any deed of trust or mortgage, provided that such creditor,
person, or entity was made a party defendant.
		In proceedings under this article, the character of the title acquired by the
purchaser of such real estate at such sale shall be governed by the principles
and rules applicable to the titles of purchases at judicial sales of real estate
generally; however nothing herein shall be construed to affect any easements
recorded prior to the date of sale.
		The former owner and his heirs, devisees, successors, or assigns of any real
estate sold under this article shall be entitled to the surplus received from
such sale in excess of the taxes, penalties, interest, reasonable attorney fees,
costs, and any liens chargeable thereon. The burden shall be on the claimant to
prove such entitlement. If no claim for payment of the indebtedness secured by
any lien chargeable thereon is made by an unknown beneficiary of such lien, or
if no claim for such surplus is made by such former owner or his heirs,
devisees, successors, or assigns within two years after the date of confirmation
of such sale, then such amount secured by the lien of the unknown beneficiary,
surplus, or both, as applicable, shall be paid by the clerk of the court in
which such suit was instituted to the county, city, or town that received
proceeds from the sale of the real estate. If a county and a town receive
proceeds from the same sale, then such surplus shall be divided between the
county and town pro rata based on the relative amount of proceeds received by
each. The circuit court holding excess proceeds under this section may refer the
matter to a commissioner in chancery who shall examine and report to the court
to whom such extra proceeds should be paid. Upon request of the former owner,
his heirs, devisees, successors, or assigns, or unknown beneficiary of any real
estate sold under this article, and after a showing of a prior entitlement
thereto, the governing body of any county, city, or town that has received such
surplus funds may grant relief, by ordinance, to such former owner, heir,
devisee, successor, assign, or unknown beneficiary and pay over such amount as
the governing body may deem appropriate to such former owner, heir, devisee,
successor, assign, or unknown beneficiary.

HISTORY: Code 1950, § 58-1117.3; 1973, c. 467; 1984, c. 675; 1990, cc. 831,
918; 1992, c. 854; 1993, cc. 51, 372; 1994, cc. 295, 884; 1996, c. 710; 1997, c.
327; 1999, cc. 403, 869; 2000, c. 756; 2001, c. 37; 2004, c. 645; 2006, c. 616;
2009, c. 682; 2025, c. 267.