Misconception #1:     People can obtain ownership of real estate by simply paying the past due real estate taxes. 

This is incorrect.  An individual cannot obtain ownership of a property simply by paying the past due real estate taxes.  “Tax deeds” do not exist in Virginia law.  

Misconception #2:     Purchasers can expect to buy real estate at tax sale for a small fraction of properties’ actual values. 

This is incorrect.  Each property is appraised by a licensed real estate appraiser before it is offered for sale and the Circuit Court determines the fair market value prior to sale. The Court expects properties to sell for at least fair market value.

Misconception #3:     Purchasers, after they acquire a property in a tax sale, have to pay all of the lien creditors listed on the County’s title report.

This is incorrect.  Properties are sold free and clear of all liens included in the tax sale complaint, including the real estate tax lien, even if the sales proceeds are insufficient to pay the past due real estate taxes in full.

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