                                 CODE OF VIRGINIA

NONJUDICIAL SALE OF TAX DELINQUENT REAL PROPERTIES OF MINIMAL SIZE AND VALUE (§
58.1-3975)

A. Notwithstanding any other provision of this title, the treasurer or other
officer responsible for collecting taxes may sell, at public auction, any parcel
of real property that is assessed at $15,000 or less, provided that the taxes on
such parcel are delinquent on December 31 following the third anniversary of the
date on which such taxes have become due.

B. The treasurer or other officer responsible for collecting taxes may in
addition sell, at public auction, any parcel of real property that is assessed
at more than $15,000 but no more than $30,000, provided that the taxes on such
parcel are delinquent on December 31 following the third anniversary of the date
on which such taxes have become due, it is not subject to a recorded mortgage or
deed of trust lien, and such parcel:

   1. Is unimproved and measures no more than 43,560 square feet (1.0 acre);

   2. Is unimproved and is determined to be unsuitable for building due to the
   size, shape, zoning, floodway, or other environmental designations of the
   parcel made by the locality&#8217;s zoning administrator or other official
   designated by the locality to administer its zoning ordinance and carry out
   the duties set forth in subdivision A 4 of &#xA7; 15.2-2286;

   3. Has a structure on it that has been condemned by the local building
   official pursuant to applicable law or ordinance;

   4. Has been declared by the locality a nuisance as that term is defined in
   &#xA7; 15.2-900;

   5. Contains a derelict building as that term is defined in &#xA7; 15.2-907.1;
   or

   6. Has been declared by the locality to be blighted as that term is defined in
   &#xA7; 36-3.
   				For purposes of determining the area of any parcel, the area or acreage
   found in the locality&#8217;s land book shall be determinative.

C. The treasurer or other duly authorized official responsible for collecting
taxes may in addition sell, at public auction, any parcel of real property that
is assessed at more than $30,000 but no more than $40,000, provided that the
taxes on such parcel are delinquent on December 31 following the third
anniversary of the date on which such taxes have become due, such parcel is not
subject to a recorded mortgage or deed of trust lien, such parcel is within an
area designated by the local governing body as an urban redevelopment or
revitalization zone, and such parcel is unimproved and measures no more than
21,825 square feet (0.5 acre). For purposes of determining the area of any
parcel, the area or acreage found in the locality&#8217;s land book shall be
determinative.

D. At least 30 days prior to conducting a sale under this section, the treasurer
or other officer responsible for collecting taxes shall:

   1. Send notice by certified or registered mail to the record owner or owners
   of such property and anyone appearing to have an interest in the property at
   their last known address as contained in the records of the treasurer or other
   officer responsible for collecting taxes; and

   2. Post notice of such sale at the property location, if such property has
   frontage on any public or private street, and at the circuit courthouse of the
   locality.

E. The treasurer or other officer responsible for collecting taxes shall also
cause a notice of sale to be published in the legal classified section of a
newspaper of general circulation in the locality in which the property is
located at least seven days prior to the sale; however, if the annual taxes
assessed on the property are less than $500, such notice may be placed, in lieu
of publication, on the treasurer&#8217;s or local government&#8217;s website
beginning at least seven days prior to sale and through the date of sale. The
pro rata costs of posting notice, publication, and mailing shall become a part
of the tax and shall be collected if payment is made in redemption of such real
property.

F. The treasurer or other officer responsible for collecting taxes may advertise
and sell multiple parcels at the same time and place pursuant to one notice of
sale.

G. The treasurer or other officer responsible for collecting taxes may enter
into an agreement with the owner of such parcel for payment over time.

H. The owner of any property, or other interested party, may redeem it at any
time prior to the date of the sale by paying all accumulated taxes, penalties,
interest, and costs thereon, including reasonable attorney fees. Partial payment
of delinquent taxes, penalties, interest, or costs shall be insufficient to
redeem the property and shall not operate to suspend, invalidate, or nullify any
sale brought pursuant to this section.

I. At the time of sale, the treasurer or other officer responsible for
collecting taxes shall sell to the highest bidder at public auction each parcel
that has not been redeemed by the owner. Such sale shall be free and clear of
the locality&#8217;s tax lien, but shall not affect easements or other rights of
record recorded prior to the date of sale or liens recorded prior to the date of
sale unless the treasurer has given the lienholder written notice of the sale at
least 30 days prior to the sale, at the lienholder&#8217;s address of record and
through his registered agent, if any. The treasurer or other officer responsible
for collecting taxes shall tender a special warranty deed pursuant to this
section to effectuate the conveyance of the parcel to the highest bidder.

J. If the sale proceeds are insufficient to pay the amounts owed in full, the
treasurer or other officer responsible for collecting taxes may remove the
unpaid taxes from the books and mark the same as satisfied. The sale proceeds
shall be applied first to the costs of sale, then to the taxes, penalty,
interest, and fees due on the parcel, and thereafter to any other taxes or other
charges owed by the former owner to the jurisdiction.

K. Any excess proceeds shall remain the property of the former owner, subject to
claims of creditors, and shall be kept by the treasurer or other officer
responsible for collecting taxes in an interest-bearing escrow account. If any
petition for excess proceeds is made to the treasurer or other officer
responsible for collecting taxes under this section, the treasurer or officer
holding the funds shall forward the funds to the locality&#8217;s circuit court
clerk to be interpleaded along with a copy of the claim for excess proceeds. A
copy of such transmission shall be forwarded to the claimant. The burden of
scheduling a hearing with the circuit court on the claim shall be that of the
claimant and shall be made within two years of the date of the sale of the
property that generated the excess funds. In the event that funds remain with
the court two years after the date of the sale, the locality may petition to
have the funds distributed to the locality&#8217;s general fund. If no claim for
payment of excess proceeds is made within two years after the date of sale, the
treasurer or other responsible officer shall deposit the excess proceeds in the
jurisdiction&#8217;s general fund.

L. If the sale does not produce a successful bidder, the treasurer or other
responsible officer shall add the costs of sale incurred by the jurisdiction to
the delinquent real estate account.

HISTORY: 2004, c. 100; 2006, c. 616; 2014, c. 28; 2015, c. 59; 2017, c. 437;
2020, c. 257; 2023, cc. 506, 507; 2024, c. 636; 2025, c. 376.