58.1-3965 - When land may be sold for delinquent taxes; notice of sale; owner's right of redemption.

§ 58.1-3965. When land may be sold for delinquent taxes; notice of sale;owner's right of redemption.

A. When any taxes on any real estate in a locality are delinquent on December31 following the second anniversary of the date on which such taxes havebecome due, or, in the case of real property upon which is situated (i) anystructure that has been condemned by the local building official pursuant toapplicable law or ordinance; (ii) any nuisance as that term is defined in §15.2-900; (iii) any derelict building as that term is defined in §15.2-907.1; or (iv) any property that has been declared to be blighted asthat term is defined in § 36-49.1:1, the first anniversary of the date onwhich such taxes have become due, such real estate may be sold for thepurpose of collecting all delinquent taxes on such property.

Upon a finding by the court, on real estate with an assessed value of$100,000 or less in any locality, that (i) any taxes on such real estate aredelinquent on December 31 following the first anniversary of the date onwhich such taxes have become due or (ii) there is a lien on such real estatepursuant to § 15.2-900, 15.2-906, 15.2-907, 15.2-907.1, 15.2-908.1, or36-49.1:1, which lien remains unpaid on December 31 following the firstanniversary of the date on which such lien was recorded, the property shallbe deemed subject to sale by public auction pursuant to proper notice underthis subsection.

The officer charged with the duty of collecting taxes for the localitywherein the real property lies shall, at least 30 days prior to institutingany judicial proceeding pursuant to this section, send a notice to (i) thelast known address of the property owner as such owner and address appear inthe records of the treasurer, (ii) the property address if the propertyaddress is different from the owner's address and if the real estate islisted with the post office by a numbered and named street address and (iii)the last known address of any trustee under any deed of trust, mortgageeunder any mortgage and any other lien creditor, if such trustee, mortgagee orlien creditor is not otherwise made a party defendant under § 58.1-3967,advising such property owner, trustee, mortgagee or other lien creditor ofthe delinquency and the officer's intention to take action. Such officershall also cause to be published at least once a list of real estate whichwill be offered for sale under the provisions of this article in a newspaperof general circulation in the locality, at least 30 days prior to the date onwhich judicial proceedings under the provisions of this article are to becommenced.

The pro rata cost of such publication shall become a part of the tax andtogether with all other costs, including reasonable attorneys' fees set bythe court and the costs of any title examination conducted in order to complywith the notice requirements imposed by this section, shall be collected ifpayment is made by the owner in redemption of the real property describedtherein whether or not court proceedings have been initiated. A noticesubstantially in the following form shall be sufficient:

Notice

Judicial Sale of Real Property

On ............ (date) .......... proceedings will be commenced under the authority of § 58.1-3965 et seq. of the Code of Virginia to sell the following parcels for payment of delinquent taxes:

(description of properties)

B. The owner of any property listed may redeem it at any time before the dateof the sale by paying all accumulated taxes, penalties, reasonable attorneys'fees, interest and costs thereon, including the pro rata cost of publicationhereunder. Partial payment of delinquent taxes, penalties, reasonableattorneys' fees, interest or costs shall not be sufficient to redeem theproperty, and shall not operate to suspend, invalidate or make moot anyaction for judicial sale brought pursuant to this article.

C. Notwithstanding the provisions of subsection B and of § 58.1-3954, thetreasurer or other officer responsible for collecting taxes may suspend anyaction for sale of the property commenced pursuant to this article uponentering into an agreement with the owner of the real property for thepayment of all delinquent amounts in installments over a period which isreasonable under the circumstances, but in no event shall exceed 24 months.Any such agreement shall be secured by the lien of the locality pursuant to §58.1-3340.

D. During the pendency of any installment agreement permitted undersubsection C, any proceeding for a sale previously commenced shall not abate,but shall be continued on the docket of the court in which such action ispending. It shall be the duty of the treasurer or other officer responsiblefor collecting taxes to promptly notify the clerk of such court whenobligations arising under such an installment agreement have been fullysatisfied. Upon the receipt of such notice, the clerk shall cause the actionto be stricken from the docket.

E. In the event the owner of the property or other responsible persondefaults upon obligations arising under an installment agreement permitted bysubsection C, or during the term of any installment agreement, defaults onany current obligation as it becomes due, such agreement shall be voidable bythe treasurer or other officer responsible for collecting taxes upon 15 days'written notice to the signatories of such agreement irrespective of theamount remaining due. Any action for the sale previously commenced pursuantto this article may proceed without any requirement that the notice oradvertisement required by subsection A, which had previously been made withrespect to such property, be repeated. No owner of property which has beenthe subject of a defaulted installment agreement shall be eligible to enterinto a second installment agreement with respect to the same property withinthree years of such default.

F. Any corporate, partnership or limited liability officer, as those termsare defined in § 58.1-1813, who willfully fails to pay any tax being enforcedby this section, shall, in addition to other penalties provided by law, beliable to a penalty of the amount of the tax not paid, to be assessed andcollected in the same manner as such taxes are assessed and collected.

(Code 1950, § 58-1117.1; 1973, c. 467; 1982, c. 669; 1983, cc. 37, 345; 1984,c. 675; 1988, c. 306; 1994, c. 884; 1995, c. 547; 1996, cc. 323, 710; 1997,c. 724; 1999, c. 674; 2002, c. 64; 2003, c. 168; 2004, c. 968; 2009, cc. 181,551.)