Property Tax Liens In Virginia
One of the methods available to collect delinquent real estate taxes under the Code of Virginia is the judicial sale process.
This is also referred to as a bill in equity, where delinquent real estate parcels are sold.
Depending on the property, the judicial sale process can take several months to approximately 18 months. The owner of the property can redeem the property at any time during the process prior to the sale by paying all taxes, penalties.
In Virginia, you are purchasing the actual property. You will be paying a fair market value for the real estate. There is no method in Virginia to simply purchase a tax lien or tax deed from the State or County. You will be actually buying the property from a special commissioner.
Therefore, you are not going to find bargain basement prices in Virginia. Under Virginia law the property must be sold for fair market value.
Since there are independent cities in Virginia, tax sales may be held by independent cities as well as counties. The property sells for the amount of the highest bid. The court orders the property sold free of liens and encumbrances.
The tax sale dates vary among the various counties and municipalities but generally the tax sales are conducted in a public outcry auction.
You will have to make a deposit prior to bidding in most cases on the day of the auction in the form of cash or cashier’s check.
You will receive a Special Warranty Deed, subject to any easements and covenants of record, and any rights of persons in possession.
Title insurance is available to purchasers at their expense, and subject to all requirements for issuance.
Interested parties may go upon the UNIMPROVED real estate only for the purpose of making an inspection.
The purchaser gets a special warranty deed. Virginia’s larger cities and counties have tax assessment data and tax sale information online.
Most counties hold tax sales annually. In addition, the City of Richmond’s tax delinquent sale properties are available year round.