Judicial Tax Sales are detailed proceedings.  Most take many months to complete; some take years.  Generally speaking, below are the steps necessary to complete a tax sale.   

• At least 30 days prior to filing a complaint with the Fauquier County Circuit Court asking for permission to sell a property, the Treasurer must provide notice to the taxpayer that if the taxes are not paid, then a lawsuit will be filed in Circuit Court, seeking permission to sell the property to pay the real estate taxes.  This notice is called the “Treasurer’s Notice”.  In addition to mailing the Treasurer’s Notice, the Treasurer publishes it in the local newspaper for one week.

• If the taxes aren’t paid in full or a payment arrangement is not reached between the Treasurer and the taxpayer by the 31st day following the Treasurer’s Notice, then a lawsuit seeking permission to sell the property is filed in the Circuit Court. 

• Once the Court determines that all of the owners and lien creditors are properly notified of the lawsuit and determines the fair market value of the parcel, then the Circuit Court appoints a special commissioner of sale to sell the property.

• The special commissioner advertises the sale in a variety of ways, including by advertising in the local newspaper and online here (link forthcoming).

• Auctions are held on the front steps of the Fauquier County Circuit Court, located at 40 Culpeper Street, Warrenton, Virginia.

• All sale proceeds are paid via cashier’s check made payable to “Clerk, Fauquier County Circuit Court”.  Cash is not accepted.

• Once the special commissioner of sale has an offer to present to the Circuit Court, she prepares a report for the Court regarding the sale and a hearing is scheduled with the Circuit Court to ask the Court to confirm the sale.

• If the sale is confirmed by the Circuit Court, the Court directs the special commissioner of sale to complete the sale by collecting the balance of the sale proceeds and transmitting them to the Clerk of the, Fauquier County Circuit Court, preparing and executing a special warranty deed to the property, and by preparing a report accounting for the sale proceeds and requested disbursements.

• Special commissioner then files a motion, requesting that the Court enter an order directing disbursement of the sale proceeds.

• If the Court enters the disbursement order, then the Clerk of the, Fauquier County Circuit Court distributes the proceeds according to that order.  The proceeds are distributed in the following order:

1. To Fauquier County for the real estate taxes, fees, litigation costs of pursuing the tax sale, including Fauquier County’s attorney's fees and any fees due to the guardian ad litem who is an attorney appointed by the Court to represent parties unknown and parties under a disability;
2. To the incorporated town where the property is located, if any, for the delinquent real estate taxes and pro rata share of current taxes;
3. To any lien creditors, the amount they’re due in the order of priority as determined by the Circuit Court.  Examples of lien creditors include mortgage lenders, judgment lien creditors, and state and federal tax authorities.  In some instances, one property owner paid real estate taxes or other carrying costs for the property without contribution from the other property owners.  In that instance and with sufficient proof from the owner, the Court will often order that owner be reimbursed for the carrying costs he/she paid before distributing the excess proceeds of sale to any of the owners; and
4. Once all of the above are paid and if there are any excess proceeds, the owners may claim their share of the excess proceeds of sale by making a claim to the Clerk of the Fauquier County Circuit Court as directed in the Court's final distribution order. 
5. If the owners of the property do not make a claim for the excess proceeds of sale within two years of the date that the Circuit Court confirms the sale of the property, then Fauquier County makes a claim to the Court, asking that the excess proceeds of sale be paid to Fauquier County.

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