Residential or commercial property and Conveyances" Subtitle IV. Common Interest Communities" Chapter 18. Residential Or Commercial Property Owners' Association Act" Article 3. Operation and Management of Association" § 55.1-1833. Lien for assessments; foreclosure

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§ 55.1-1833. Lien for evaluations; foreclosure.

A. The association will have a lien, as soon as refined, on every lot for overdue evaluations levied against that lot in accordance with the arrangements of this chapter and all lawful arrangements of the declaration. The lien, once perfected, will be prior to all other subsequent liens and encumbrances except (i) real estate tax liens on that lot, (ii) liens and encumbrances recorded prior to the recordation of the declaration, and (iii) sums overdue on and owing under any mortgage or deed of trust recorded prior to the perfection of such lien. The arrangements of this subsection will not impact the concern of mechanics' and materialmen's liens. Notice of a memorandum of lien to a holder of a credit limit deed of trust under § 55.1-318 shall be given up the exact same style as if the association's lien were a judgment.

B. The association, in order to best the lien provided by this area, will file, before the expiration of 12 months from the time the very first such evaluation ended up being due and payable in the clerk's office of the circuit court in the county or city in which such development is positioned, a memorandum, validated by the oath of the principal officer of the association or such other officer or officers as the declaration may specify, which includes the following:

1. The name of the development;

2. A description of the lot;

3. The name or names of the individuals constituting the owners of that lot;

4. The amount of unsettled assessments presently due or overdue relative to such lot together with the date when each fell due;

5. The date of issuance of the memorandum;

6. The name of the association and the name and current address of the individual to contact to schedule payment or release of the lien; and

7. A statement that the association is acquiring a lien in accordance with the arrangements of the Residential or commercial property Owners' Association Act as set forth in Chapter 18 ( § 55.1-1800 et seq.) of Title 55.1.

It will be the task of the clerk in whose office such memorandum is submitted as offered in this area to record and index the like offered in subsection D, in the names of the individuals recognized in such memorandum as well as in the name of the association. The expense of recording and launching the memorandum shall be taxed against the individual discovered accountable in any judgment or order enforcing such lien.

C. Prior to filing a memorandum of lien, a written notification shall be sent out to the residential or commercial property owner by licensed mail, at the residential or commercial property owner's last recognized address, notifying the residential or commercial property owner that a memorandum of lien will be submitted in the circuit notary's office of the suitable county or city. The notice shall be sent a minimum of 10 days before the real filing date of the memorandum of lien.

D. Notwithstanding any other arrangement of this area or any other provision of law requiring files to be recorded in the miscellaneous lien books or the deed books in the clerk's workplace of any court, on or after July 1, 1989, all memoranda of liens developing under this area will be taped in the deed books in the clerk's office. Any memorandum will be indexed in the basic index to deeds, and the basic index shall determine the lien as a lien for lot assessments.

E. Any lien perfected pursuant to subsection B may be enforced by submitting a civil action to carry out a judicial foreclosure in the circuit court in the county or city where the lot is situated or by nonjudicial foreclosure pursuant to subsections I and J. No foreclosure of any lien refined under this area will be started after 120 months from the time when the memorandum of lien was tape-recorded. The filing of a civil action to enforce any such lien by foreclosure through judicial methods or issuance of notification of nonjudicial foreclosure under subdivision J 1 will be considered as the organization of an action under this section. Nothing in this subsection shall extend the time within which any such lien may be refined.

F. The judgment or order in an action brought pursuant to this area shall consist of repayment for costs and sensible attorney fees of the prevailing celebration. If the association prevails, it may likewise recuperate interest at the legal rate for the amounts protected by the lien from the time each such amount ended up being due and payable.

G. When payment or satisfaction is made of a financial obligation protected by any lien perfected pursuant to subsection B, such lien shall be launched in accordance with the arrangements of § 55.1-339. Any lien that is not so released shall subject the lien lender to the charge stated in subdivision B 1 of § 55.1-339. For the functions of § 55.1-339, the principal officer of the association, or any other officer or officers as the declaration may specify, will be considered the appropriately authorized representative of the lien creditor.

H. Nothing in this section will be construed to forbid actions at law to recover sums for which subsection A creates a lien, maintainable pursuant to § 55.1-1828.

I. The association might perform a judicial or nonjudicial foreclosure sale upon a lot versus which the association has perfected several liens pursuant to this area if the overall amounts protected remain in excess of $5,000, exclusive of lawyer fees and expenses. For purposes of this area, the association shall have the power both to offer and convey the lot and will be considered the lot owner's statutory representative for the purpose of transferring title to the lot.

J. A nonjudicial foreclosure sale will be performed in compliance with the following:

1. The association will offer notification to the lot owner prior to advertisement required by neighborhood 4. The notice shall specify (i) the financial obligation secured by the refined lien; (ii) the action required to please the debt secured by the perfected lien; (iii) the date, not less than 60 days from the date the notification is offered to the lot owner, by which the financial obligation secured by the lien needs to be pleased; and (iv) that failure to please the debt secured by the lien on or before the date specified in the notice may lead to the sale of the lot. The notification will even more inform the lot owner of the right to bring a court action in the circuit court of the county or city where the lot is located to assert the nonexistence of a financial obligation or any other defense of the lot owner to the sale.

2. After expiration of the 60-day notice period specified in subdivision 1, the association may select a trustee to carry out the sale. The appointment of the trustee will be filed in the clerk's office of the circuit court in the county or city in which such development is situated. It will be the responsibility of the clerk in whose office such visit is filed to tape and index the very same as provided in subsection D, in the names of the individuals identified in such consultation as well as in the name of the association. The association, at its option, may from time to time remove the trustee and appoint a follower trustee.

3. If the lot owner fulfills the conditions defined in this neighborhood prior to the date of the foreclosure sale, the lot owner will can have enforcement of the perfected lien terminated prior to the sale of the lot. Those conditions are that the lot owner (i) satisfy the financial obligation protected by lien that is the topic of the nonjudicial foreclosure sale and (ii) pay all costs and costs sustained in improving and imposing the lien, consisting of marketing expenses and sensible attorney charges.

4. In addition to the ad needed by subdivision 5, the association will give written notification of the time, date, and place of any suggested sale in execution of the lien, consisting of the name, address, and phone number of the trustee, by hand delivery or by mail to (i) the present owner of the residential or commercial property to be sold at his last known address as such owner and address appear in the records of the association, (ii) any lienholder who holds a note against the residential or commercial property secured by a deed of trust recorded at least thirty days prior to the proposed sale and whose address is recorded with the deed of trust, and (iii) any assignee of such a note secured by a deed of trust, provided that the assignment and address of the assignee are also recorded at least thirty days prior to the proposed sale. Mailing a copy of the ad or the notification consisting of the exact same info to the owner by accredited or signed up mail no less than 14 days prior to such sale and to lienholders and their assigns, at the addresses kept in mind in the memorandum of lien, by United States mail, postage prepaid, no less than 2 week prior to such sale, will be an enough compliance with the requirement of notification.

5. The advertisement of sale by the association will be in a paper having a general circulation in the county or city in which the residential or commercial property to be offered, or any part of such residential or commercial property, is located pursuant to the list below provisions:

a. The association will market when a week for 4 successive weeks; nevertheless, if the residential or commercial property or some portion of such residential or commercial property lies in a city or in a county right away contiguous to a city, publication of the ad on 5 various days, which may be successive days, shall be considered sufficient. The sale shall be held on any day following the day of the last ad that is no earlier than eight days following the first advertisement nor more than 1 month following the last ad.

b. Such ad shall be put in that area of the paper where legal notices appear or where the type of residential or commercial property being offered is typically advertised for sale. The advertisement of sale, in addition to such other matters as the association finds suitable, shall state a description of the residential or commercial property to be offered, which description need not be as comprehensive as which contained in the deed of trust however shall recognize the residential or commercial property by street address, if any, or, if none, shall offer the basic location of the residential or commercial property with referral to streets, paths, or known landmarks. Where readily available, tax map recognition may be utilized however is not required. The ad will likewise include the date, time, place, and terms of sale and the name of the association. It shall set forth the name, address, and telephone number of the representative, agent, or lawyer who may be able to react to questions worrying the sale.

c. In addition to the advertisement required by subdivisions a and b, the association may even more advertise as the association finds proper.

6. In the event of postponement of sale, which post ponement shall be at the discretion of the association, ad of such delayed sale shall remain in the very same manner as the initial ad of sale.

7. Failure to abide by the requirements for advertisement contained in this section shall, upon petition, render a sale of the residential or commercial property voidable by the court.

8. The association shall have the following powers and duties upon a sale:

a. Written one-price quotes might be made and will be received by the trustee from the association or any person for entry by statement at the sale. Anyone aside from the trustee may bid at the foreclosure sale, consisting of a person who has actually sent a written one-price bid. Upon demand to the trustee, any other bidder in attendance at a foreclosure sale will be allowed to examine written quotes. Unless otherwise provided in the declaration, the association may bid to purchase the lot at a foreclosure sale. The association may own, lease, encumber, exchange, sell, or convey the lot. Whenever the written quote of the association is the greatest bid submitted at the sale, such written quote shall be submitted by the trustee with his account of sale needed under subdivision J 10 and § 64.2-1309. The written bid submitted pursuant to this subsection might be prepared by the association, its representative, or its lawyer.

b. The association might need any bidder at any sale to publish a money deposit of as much as 10 percent of the list price before his quote is received, which shall be refunded to him if the residential or commercial property is not sold to him. The deposit of the successful bidder shall be applied to his credit at settlement, or, if such bidder fails to complete his purchase quickly, the deposit shall be used to pay the costs and costs of the sale, and the balance, if any, will be maintained by the association in connection with that sale.

c. The association will get and invoice for the proceeds of sale, no purchaser being needed to see to the application of the profits, and use the very same in the following order: first, to the sensible expenses of sale, including attorney fees; second, to the fulfillment of all taxes, levies, and assessments, with costs and interest; third, to the satisfaction of the lien for the owners' evaluations; fourth, to the fulfillment in the order of concern of any staying inferior claims of record; and 5th, to pay the residue of the profits to the owner or his appoints, supplied, nevertheless, that, regarding the payment of such residue, the association will not be bound by any inheritance, design, conveyance, assignment, or lien of or upon the owner's equity, without real notification thereof prior to circulation.

9. The trustee will deliver to the purchaser a trustee's deed conveying the lot with unique service warranty of title. The trustee will not be required to take ownership of the residential or commercial property prior to the sale of such residential or commercial property or to deliver ownership of the lot to the purchaser at the sale.

10. The trustee will file an accounting of the sale with the commissioner of accounts pursuant to § 64.2-1309, and every account of a sale will be recorded pursuant to § 64.2-1310. In addition, the accounting shall be made offered for evaluation and copying pursuant to § 55.1-1815 upon the composed demand of the previous lot owner, the current lot owner, or any holder of a tape-recorded lien against the lot at the time of the sale. The association will keep a copy of the accounting for at least 12 months following the foreclosure sale.

11. If the sale of a lot is made pursuant to subsection I and the accounting is made by the trustee, the title of the purchaser at such sale will not be interrupted unless within 12 months from the verification of the accounting by the commissioner of accounts the sale is set aside by the court or an appeal is submitted in the Court of Appeals or approved by the Supreme Court and an order is gotten in needing such sale to be reserved.

1989, c. 679, § 55-516; 1991, c. 667; 1997, cc. 760, 766; 2000, c. 905; 2004, cc. 778, 779, 786; 2019, c. 712; 2021, Sp. Sess. I, c.