Virginia Code

Va. Code Ann. § 58.1-3967 (2026)

How proceedings instituted; parties; procedure generally; title acquired; disposition of surplus proceeds of sale

✓ current as of May 2026

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Proceedings under this article for the appointment of a special commissioner under § 58.1-3970.1 or the sale of real estate on which county, city, or town taxes are delinquent shall be by a complaint, filed in the circuit court of the county or city in which such real estate is located, to subject the real estate to the lien for such delinquent taxes.

Except as modified by statute, such proceedings shall be conducted in accordance with any requirements arising from statute or case law for a creditor's equitable claim to effect the sale of real estate to enforce a judgment lien. Any person or entity with an interest in such real estate, including a lienor, a person with a claim of title, or the beneficiary and trustees under a deed of trust, shall be named as a party defendant.

Any party served by publication may petition to have the case reheard pursuant to § 8.01-322, but only for good cause shown, and only within 90 days of entry of the confirmation of sale.

After filing of suit and a lis pendens, any party who thereafter acquires an interest in the delinquent real estate, including a lienor or party with a claim of title, shall not be deemed a necessary party, but shall be permitted to intervene in the proceedings to file his claim. Failure to file such a claim shall bar any such claim. The title conveyed to the purchaser at the judicial sale shall be held to bar any disabilities of parties defendant, and shall be free of all claims of any creditor, person, or entity, including those claims of beneficiaries under any deed of trust or mortgage, provided that such creditor, person, or entity was made a party defendant.

In proceedings under this article, the character of the title acquired by the purchaser of such real estate at such sale shall be governed by the principles and rules applicable to the titles of purchases at judicial sales of real estate generally; however nothing herein shall be construed to affect any easements recorded prior to the date of sale.

The former owner and his heirs, devisees, successors, or assigns of any real estate sold under this article shall be entitled to the surplus received from such sale in excess of the taxes, penalties, interest, reasonable attorney fees, costs, and any liens chargeable thereon. The burden shall be on the claimant to prove such entitlement. If no claim for payment of the indebtedness secured by any lien chargeable thereon is made by an unknown beneficiary of such lien, or if no claim for such surplus is made by such former owner or his heirs, devisees, successors, or assigns within two years after the date of confirmation of such sale, then such amount secured by the lien of the unknown beneficiary, surplus, or both, as applicable, shall be paid by the clerk of the court in which such suit was instituted to the county, city, or town that received proceeds from the sale of the real estate. If a county and a town receive proceeds from the same sale, then such surplus shall be divided between the county and town pro rata based on the relative amount of proceeds received by each. The circuit court holding excess proceeds under this section may refer the matter to a commissioner in chancery who shall examine and report to the court to whom such extra proceeds should be paid. Upon request of the former owner, his heirs, devisees, successors, or assigns, or unknown beneficiary of any real estate sold under this article, and after a showing of a prior entitlement thereto, the governing body of any county, city, or town that has received such surplus funds may grant relief, by ordinance, to such former owner, heir, devisee, successor, assign, or unknown beneficiary and pay over such amount as the governing body may deem appropriate to such former owner, heir, devisee, successor, assign, or unknown beneficiary.

Code 1950, § 58-1117.3; 1973, c. 467; 1984, c. 675; 1990, cc. 831, 918; 1992, c. 854; 1993, cc. 51, 372; 1994, cc. 295, 884; 1996, c. 710; 1997, c. 327; 1999, cc. 403, 869; 2000, c. 756; 2001, c. 37; 2004, c. 645; 2006, c. 616; 2009, c. 682; 2025, c. 267.

Notes of Decisions

Cited in 14 cases (6 in the last 5 years), 1990–2026 · leading case: Washington v. Cnty. of King William (In Re Washington), 232 B.R. 340 (Bankr. E.D. Va. 1999).

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Washington v. Cnty. of King William (In Re Washington), 232 B.R. 340 (Bankr. E.D. Va. 1999). · cites it 4× “Va.Code Ann. § 58.1-3967, which provides procedures for a delinquent tax sale of real estate, states the following: *345 Such proceedings shall be held in accordance with the requirements, statutory or arising at common law, relative to effecting the sale of real estate by a…”

Refund Recov. Spec., LLC v. City of Norfolk, Va., a Mun. Corp. by & through its Treas., Duan Hester (Va. Ct. App. 2026). · cites it 90× “Va. Code §58.1-3967 as applied in the Order effects an unconstitutional taking from the heirs of the former owners of the subject property.”

McKeithen v. City of Richmond (Va. 2023). · cites it 52× “Although the sale proceeds wholly satisfied the City’s tax lien, the circuit court held that Code § 58.1-3967 required it to award a portion of the surplus sale proceeds to the City rather than an unsatisfied junior lienor.”

CVE, LLC v. Refund Recovery Specialists, LLC (Va. Ct. App. 2025). · cites it 21× “2 CVE filed this motion on December 8, 2023—two days before the expiration of a two-year limitations period for asserting claims to surplus funds (Code § 58.1-3967), yet several months after the deed of trust expired on February 12, 2023 (Code § 8.”

Emmanuel Worship Ctr. v. City of Petersburg (Va. 2022). · cites it 6× “Code § 58.1-3967 sets forth how these proceedings are instituted, who the necessary parties are, and what should be done with any surplus.”

Loudoun Cnty. v. Riley, 31 Va. Cir. 338 (Loudoun Cir. Ct. 1993). · cites it 12× “Chamblin This suit to sell land for delinquent real estate taxes is before the Court on the exceptions of the County of Loudoun to the Report of the Commissioner in Chancery filed May 25, 1993, concerning the distribution under Section 58.1-3967 of the surplus received from the…”

Stafford Cnty. v. River Ridge Estates, Inc., 24 Va. Cir. 462 (Stafford Cir. Ct. 1991). · cites it 8× “In accordance with the directions of a Decree of Reference entered January 3, 1989, the Commissioner, relying upon the provisions of § 58.1-3967 3 and upon the fact that the County seeks payments for property taxes incurred both pre and post dissolution, has reported that the…”

Questions Submitted by: The Honorable Kendal Sacchieri, Oklahoma State Senate, Dist. 43, 2025 OK AG 10 (Okla. Att’y Gen. 2025). · cites it 2× “§ 361.610(4) (one year); N.M. Stat. Ann. § 7-38-71(C) (two years); N.”

CVAS 2, LLC v. City of Fredericksburg (Va. 2015). · cites it 2× “" Code § 58.1-3967 (emphasis added). 2 "There shall be one form of civil case, known as a civil action.”

Brodrick C. Aratoon v. Cheryl Roberts (Va. Ct. App. 2015). · cites it 2× “1-215 (condemnation proceedings); Code § 58.1-3967 (delinquent tax lands sale proceedings); Code § 64.”

Roanoke Cnty. v. Torry, 85 Va. Cir. 357 (Roanoke County Cir. Ct. 2012). · cites it 2× “” § 58.1-3967. This type of civil action is very similar to a creditor’s bill in equity, but, because of its statutory requirements, it has some unique features not found in an ordinary creditor’s bill.”

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