It Shall Set Forth The Name

Residential or 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 evaluations; foreclosure




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§ 55.1-1833. Lien for evaluations; foreclosure.


A. The association shall have a lien, as soon as refined, on every lot for unpaid evaluations imposed against that lot in accordance with the provisions of this chapter and all lawful provisions of the statement. The lien, as soon as improved, will be prior to all other subsequent liens and encumbrances other than (i) property tax liens on that lot, (ii) liens and encumbrances tape-recorded prior to the recordation of the statement, and (iii) sums unsettled on and owing under any mortgage or deed of trust taped prior to the perfection of such lien. The provisions of this subsection shall not affect the concern of mechanics' and materialmen's liens. Notice of a memorandum of lien to a holder of a credit line deed of trust under § 55.1-318 shall be provided in the same style as if the association's lien were a judgment.


B. The association, in order to best the lien offered by this area, will submit, before the expiration of 12 months from the time the very first such assessment became due and payable in the clerk's office of the circuit court in the county or city in which such advancement is situated, a memorandum, validated by the oath of the principal officer of the association or such other officer or officers as the statement may specify, which includes the following:


1. The name of the advancement;


2. A description of the lot;


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


4. The quantity of unsettled assessments currently due or unpaid 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 present address of the individual to get in touch with to schedule payment or release of the lien; and


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


It will be the responsibility of the clerk in whose workplace such memorandum is filed as offered in this section to record and index the same as supplied in subsection D, in the names of the individuals determined in such memorandum as well as in the name of the association. The cost of recording and launching the memorandum shall be taxed against the person found liable in any judgment or order imposing such lien.


C. Prior to filing a memorandum of lien, a composed notice will be sent 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 workplace of the suitable county or city. The notice shall be sent at least 10 days before the real filing date of the memorandum of lien.


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


E. Any lien improved pursuant to subsection B might be implemented by filing a civil action to perform a judicial foreclosure in the circuit court in the county or city where the lot lies or by nonjudicial foreclosure pursuant to subsections I and J. No foreclosure of any lien perfected under this section shall be initiated after 120 months from the time when the memorandum of lien was 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 neighborhood J 1 shall be considered the organization of an action under this area. Nothing in this subsection shall extend the time within which any such lien might be refined.


F. The judgment or order in an action brought pursuant to this section will include compensation for expenses and affordable attorney fees of the dominating party. If the association dominates, it may likewise recuperate interest at the legal rate for the sums protected by the lien from the time each such sum became due and payable.


G. When payment or complete satisfaction is made of a debt secured by any lien improved pursuant to subsection B, such lien will be released in accordance with the provisions of § 55.1-339. Any lien that is not so launched will subject the lien creditor to the charge set forth in subdivision B 1 of § 55.1-339. For the purposes of § 55.1-339, the principal officer of the association, or any other officer or officers as the declaration may define, will be deemed the duly licensed representative of the lien lender.


H. Nothing in this section shall be construed to restrict actions at law to recuperate amounts for which subsection A develops a lien, maintainable pursuant to § 55.1-1828.


I. The association might conduct a judicial or nonjudicial foreclosure sale upon a lot versus which the association has perfected one or more liens pursuant to this area if the overall amounts protected remain in excess of $5,000, exclusive of lawyer charges and expenses. For purposes of this area, the association will have the power both to offer and communicate the lot and will be deemed the lot owner's statutory agent for the purpose of moving title to the lot.


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


1. The association shall provide notification to the lot owner prior to advertisement needed by neighborhood 4. The notice will specify (i) the financial obligation protected by the refined lien; (ii) the action required to satisfy the debt secured by the improved lien; (iii) the date, not less than 60 days from the date the notice is offered to the lot owner, by which the debt protected by the lien should be satisfied; and (iv) that failure to satisfy the debt secured by the lien on or before the date specified in the notice might lead to the sale of the lot. The notice 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 lies 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 duration specified in subdivision 1, the association may select a trustee to conduct the sale. The visit of the trustee shall be filed in the clerk's workplace of the circuit court in the county or city in which such development is located. It shall be the duty of the clerk in whose office such appointment is submitted to record and index the very same as provided in subsection D, in the names of the individuals identified in such consultation in addition to in the name of the association. The association, at its alternative, might from time to time remove the trustee and designate a successor trustee.


3. If the lot owner fulfills the conditions specified in this subdivision prior to the date of the foreclosure sale, the lot owner shall have the right to have enforcement of the refined 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 subject of the nonjudicial foreclosure sale and (ii) pay all costs and costs incurred in refining and imposing the lien, including marketing costs and sensible attorney costs.


4. In addition to the advertisement required by subdivision 5, the association shall give written notification of the time, date, and place of any proposed sale in execution of the lien, including 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 offered 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 protected by a deed of trust recorded a minimum of 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 project and address of the assignee are also taped at least 1 month prior to the proposed sale. Mailing a copy of the advertisement or the notification including the same details to the owner by licensed or registered mail no less than 14 days prior to such sale and to lienholders and their designates, at the addresses noted in the memorandum of lien, by United States mail, postage prepaid, no less than 14 days prior to such sale, shall be an enough compliance with the requirement of notice.


5. The ad of sale by the association shall remain in a paper having a basic blood circulation in the county or city in which the residential or commercial property to be offered, or any portion of such residential or commercial property, lies pursuant to the list below provisions:


a. The association will market once a week for four succeeding weeks; nevertheless, if the residential or commercial property or some part of such residential or commercial property is situated in a city or in a county immediately contiguous to a city, publication of the advertisement on 5 different days, which might be consecutive days, will be deemed appropriate. The sale will be held on any day following the day of the last ad that is no earlier than 8 days following the first ad nor more than one month following the last advertisement.


b. Such advertisement will be placed in that area of the paper where legal notices appear or where the type of residential or commercial property being sold is typically marketed for sale. The ad of sale, in addition to such other matters as the association finds appropriate, shall set forth 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 but shall identify the residential or commercial property by street address, if any, or, if none, will offer the general location of the residential or commercial property with recommendation to streets, routes, or known landmarks. Where available, tax map recognition may be used but is not required. The advertisement shall likewise consist of 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 attorney who might be able to react to inquiries concerning the sale.


c. In addition to the ad needed by neighborhoods a and b, the association may further market as the association discovers suitable.


6. In case of post ponement of sale, which postponement shall be at the discretion of the association, advertisement of such delayed sale shall be in the very same way as the initial advertisement of sale.


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


8. The association will have the following powers and responsibilities upon a sale:


a. Written one-price bids may be made and shall be gotten by the trustee from the association or anyone for entry by announcement at the sale. Any individual aside from the trustee may bid at the foreclosure sale, consisting of an individual who has sent a composed one-price bid. Upon request to the trustee, any other bidder in presence at a foreclosure sale will be permitted to inspect written bids. Unless otherwise supplied in the statement, the association might bid to purchase the lot at a foreclosure sale. The association might own, rent, encumber, exchange, sell, or communicate the lot. Whenever the written bid of the association is the greatest bid sent at the sale, such composed bid shall be filed by the trustee with his account of sale needed under neighborhood J 10 and § 64.2-1309. The composed quote submitted pursuant to this subsection may be prepared by the association, its agent, or its lawyer.


b. The association may need any bidder at any sale to post a cash deposit of as much as 10 percent of the sale cost before his quote is gotten, 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 stops working to finish his purchase quickly, the deposit shall be used to pay the costs and expenditures of the sale, and the balance, if any, shall be kept by the association in connection with that sale.


c. The association will receive and receipt for the earnings of sale, no buyer being needed to see to the application of the proceeds, and apply the same in the following order: initially, to the sensible costs of sale, consisting of lawyer fees; second, to the satisfaction of all taxes, levies, and assessments, with costs and interest; 3rd, to the fulfillment of the lien for the owners' assessments; fourth, to the complete satisfaction in the order of concern of any staying inferior claims of record; and 5th, to pay the residue of the proceeds to the owner or his appoints, offered, however, 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 actual notification thereof prior to distribution.


9. The trustee shall deliver to the purchaser a trustee's deed conveying the lot with unique guarantee of title. The trustee shall not be needed to seize the residential or commercial property prior to the sale of such residential or commercial property or to provide belongings of the lot to the buyer 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 shall be recorded pursuant to § 64.2-1310. In addition, the accounting will be made offered for evaluation and copying pursuant to § 55.1-1815 upon the composed demand of the prior lot owner, the present lot owner, or any holder of a tape-recorded lien versus the lot at the time of the sale. The association shall preserve 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 shall not be disrupted 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 granted by the Supreme Court and an order is entered needing such sale to be set aside.


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.