Sale Type: | Judicial tax sale: a court-supervised public auction, and the buyer receives a deed through the court process |
Interest Rate: | Not earned by buyers; Virginia does not sell tax lien certificates |
Bid Method: | Oral bidding at a public auction run by a court-appointed special commissioner; deposit and payment terms are in the sale notice |
Owner can redeem any time before the sale by paying all taxes, penalties, interest, attorney fees and costs; after confirmation, only a limited 90-day rehearing for parties served by publication | |
Sale Date(s): | Set by each county or city; no statewide schedule |
State Statute(s): | Va. Code Title 58.1, Chapter 39, Article 4 (§§ 58.1-3965 through 58.1-3975) |
Not a standard option; ask the county or city treasurer | |
State Website: | law.lis.virginia.gov (statutes); check the local treasurer and circuit court for sale notices |
How Virginia Tax Sales Work
Virginia is a tax deed state. It does not sell tax lien certificates, so there is no redemption interest for an investor to earn. Instead, when real estate taxes go unpaid, the county, city or town holds a lien on the property. If the taxes stay unpaid, the locality can ask the circuit court to order the property sold. The buyer at that sale receives the property through a deed, not a certificate.
Tax lien vs. tax deed: a tax lien investment means buying the debt and earning interest if the owner pays. A tax deed purchase means buying the property itself. Virginia works the second way.
How the Court-Ordered Sale Works
For most parcels, the process runs through the courts, not just the treasurer’s office. In general:
The locality’s attorney files a case in circuit court against the property and the parties with an interest in it.
Those parties are notified, by publication when they cannot be found.
The court orders a sale, and a court-appointed special commissioner conducts it as a public auction to the highest bidder.
The court then reviews and confirms the sale, and the buyer receives a deed.
Sales are often held on the courthouse steps, and the notice sets the deposit, payment terms and closing deadline. Read the sale notice and the court order before you bid. The terms can differ by locality and by case.
Can the Owner Redeem?
Yes, but only before the sale. The owner, or the owner’s heirs or assigns, can stop the sale by paying all delinquent taxesProperty taxes that remain unpaid past the due date, which may result in penalties, interest, and eventually a tax lien being placed on the property., penalties, interest, reasonable attorney fees and costs, including the cost of publishing notices. A partial payment is generally not enough.
Once the court confirms the sale, there is no ordinary post-sale redemption period like the ones in many tax lien states. The statutes we reviewed allow a limited rehearing: a party who was served only by publication can ask the court to reopen the case for good cause, and only within 90 days of confirmation. A federal tax lien on the property can also carry a separate federal redemption right. Have an attorney review any parcel with a federal lien.
What You Receive: The Deed and the Title
Virginia treats the sale as a judicial sale. The title passes through the court process, and it is generally free of the claims of parties who were properly named in the case, including mortgage and deed of trust holders. Easements recorded before the sale are not affected.
Two cautions:
Title is only as clean as the court case. A missed party or a defect in notice can create problems later.
The buyer is usually responsible for confirming what is actually being conveyed, including taxes and any liens that were not part of the case.
Surplus Money and the Former Owner
If the property sells for more than the taxes, penalties, interest, fees, costs and liens, the former owner and the owner’s heirs or assigns can claim the surplus. If no one claims it within two years of confirmation, it goes to the locality. For buyers, this is one reason sales that look cheap can still carry legal exposure: the former owner has rights to what the sale brings in above the debt.
Smaller Parcels: The Treasurer’s Sale
Virginia also allows a simpler, non-court sale for certain properties of minimal size and value. The treasurer sells at a public auction after published notice, and the buyer receives a special warranty deed. The sale clears the locality’s tax lien, but it does not clear recorded easements or liens recorded before the sale unless the lienholder received at least 30 days’ notice. The owner or an interested party can still pay the debt before the sale. Because this route has fewer built-in protections, title research matters even more.
What This Means for Investors
Virginia is a property-purchase market, not an interest-earning one. That changes how you think about it:
No fixed return. Nothing here pays a set percentage. Your outcome depends on what you pay and what the property is worth.
Costs beyond the bid. Title work, legal fees, back taxes not covered by the sale, and any cleanup or repairs can add up.
Locality-by-locality rules. Each county and city sets its own schedule and procedures, and some sell few properties in a given year.
The locality can also buy. Virginia law lets the locality itself purchase at the sale, which affects what is available.
Older guides, including earlier versions of this page, described the treasurer starting foreclosure on a fixed December 31 date and a deed mailed about a month after the sale. For most parcels, Virginia’s process runs through the circuit court instead, so do not rely on that older description.
What Investors Should Check
Before bidding at a Virginia tax sale:
Get the sale notice and the court order from the locality’s attorney, treasurer or circuit court clerk.
Order a title searchAn examination of public records to verify a property's legal ownership and identify any liens, encumbrances, or other claims that may affect the title. to find liens, easements, and any federal tax lien.
Confirm the deposit, payment terms and closing deadline in writing.
Inspect the property from the outside and check zoning, access and occupancy.
Compare the likely total cost to the property’s real market value. Our guide on how to evaluate tax lien properties at auction covers the same due diligenceThe research and investigation process an investor conducts before purchasing a tax lien or tax deed to evaluate the property and assess risk. steps.
Check our tax lien states vs. tax deed states map to see how Virginia compares with other states.
All investing involves risk. Outcomes depend on due diligence, and results vary. This page is general education only and is not legal, tax or financial advice. Talk to a licensed Virginia attorney before you buy.
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