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2010 SESSION
Be it enacted by the General Assembly of Virginia:
1. That §§ 55-59.4 and 58.1-3340 of the Code of Virginia are amended and reenacted as follows:
§ 55-59.4. Powers and duties of trustee in event of sale under or satisfaction of deed of trust.
A. In the event of sale under a deed of trust, the trustee shall have the following powers and duties in addition to all others:
1. Written one-price bids may be made and shall be received by the trustee from the beneficiary or any other person for entry by announcement of the trustee at the sale. Any person other than the trustee may bid at the foreclosure sale, including a person who has submitted a written one-price bid. Upon request to the trustee or trustees, any other bidder in attendance at a foreclosure sale shall be permitted to inspect written bids. Whenever the written bid of the beneficiary is the highest bid submitted at the sale, such document shall be filed by the trustee with his account of sale required under § 26-15. The written bid submitted pursuant to this subsection may be prepared by the beneficiary, its agent or attorney.
2. The trustee may require of any bidder at any sale a cash deposit of as much as ten per centum of the sale price (unless the deed of trust specifies a higher or lower maximum, which may be done by the words "bidder's deposit of not more than ... dollars may be required," or words of like purport), before his bid is received, which shall be refunded to the bidder unless the property is sold to him, otherwise to be applied to his credit in settlement or, should he fail to complete his purchase promptly, to be applied to pay the costs and expense of sale and the balance, if any, to be retained by the trustee as his compensation in connection with that sale.
3. The trustee shall receive and receipt for the proceeds of
sale, no purchaser being required to see to the application of the proceeds,
account for the same to the commissioner of accounts pursuant to § 26-15 and
apply the same, first, to discharge the expenses of executing the trust,
including a reasonable commission to the trustee; secondly, to discharge all
taxes, levies, and assessments, with costs and interest if they have priority
over the lien of the deed of trust, including the due pro rata thereof for the
current year; thirdly, to discharge in the order of their priority, if any, the
remaining debts and obligations secured by the deed, and any liens of record
inferior to the deed of trust under which sale is made, with lawful interest;
and, fourthly, the residue of the proceeds shall be paid to the grantor or his
assigns; provided, however, that the trustee as to such residue shall not be
bound by any inheritance, devise, conveyance, assignment or lien of or upon the
grantor's equity, without actual notice thereof prior to distribution; provided
further that such order of priorities shall not be changed or varied by the
deed of trust. The trustee's deed shall show the trustee's mailing address.
B. Upon discharge (other than by sale by the trustee) of all debts, duties and obligations imposed by the deed upon the grantor, including any expenses incurred preparatory to sale, then upon the grantor's request the trustee shall execute and deliver a good and sufficient deed of release at the grantor's own proper costs and charges.
§ 58.1-3340. Lien on real estate for taxes and levies assessed thereon; responsibility of purchaser or trustee at sale; lien on rents.
There shall be a lien on real estate for the payment of taxes
and levies assessed thereon prior to any other lien or encumbrance. The lien
shall continue to be such prior lien until actual payment shall have been made
to the proper officer of the taxing authority. The purchaser at a sale, or
trustee in the event of a foreclosure sale, shall cause the proceeds to be
applied to the payment of all taxes and levies assessed on real estate, the
provisions of § 55-59.4 notwithstanding. In the case of the purchase of a
portion of a tract of land, the purchaser shall cause the proceeds to be
applied to the payment of taxes and levies assessed on the entire tract,
prorated in accordance with the relationship that the purchase price bears to
the most recent assessed value of the entire tract. If the cost per acre of the
purchased parcel is less than the assessed value per acre of the entire tract,
or if, in the reasonable opinion of the local commissioner of the revenue or
other assessing officer, the purchase price is less than the fair market value
of the purchased parcel, the local commissioner of the revenue or other
assessing officer may require that an appraisal, prepared by a state-certified
or state-licensed appraiser, of the purchased parcel be provided, and in such
event the proration shall be made in accordance with the relationship that the
greater of (i) the appraised value of the purchased parcel or (ii) the purchase
price bears to the most recent assessed value of the entire tract. In the event
a proration is necessary, the purchaser's portion of such tract of land shall
be relieved of such lien to the extent the proceeds exceed the purchaser's pro
rata share of taxes. It shall be the responsibility of the treasurer or other
proper officer of the taxing authority to cause the release of the lien. The
seller's liability for taxes and levies shall be effectively prorated
contractually. The words "taxes" and "levies" as used in
this section include the penalties and interest accruing on such taxes and
levies in pursuance of law. The lien imposed hereby shall, in addition to
existing remedies for the collection of taxes and levies, be enforceable by
suit in equity under the provisions of Article 4 (§ 58.1-3965 et seq.) of
Chapter 39.
There shall be a further lien upon the rents of such real estate whether the same be in money or in kind, for taxes of the current year.