It Shall Set Forth The Name

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 evaluations; foreclosure

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§ 55.1-1833. Lien for assessments; foreclosure.

A. The association will have a lien, when perfected, on every lot for unsettled assessments levied against that lot in accordance with the provisions of this chapter and all legal arrangements of the statement. The lien, as soon as improved, shall be prior to all other subsequent liens and encumbrances other than (i) property tax liens on that lot, (ii) liens and encumbrances recorded prior to the recordation of the declaration, and (iii) amounts unpaid on and owing under any mortgage or deed of trust tape-recorded prior to the excellence of such lien. The provisions of this subsection shall not impact the top priority of mechanics' and materialmen's liens. Notice of a memorandum of lien to a holder of a line of credit deed of trust under § 55.1-318 shall be given up the very same fashion as if the association's lien were a judgment.

B. The association, in order to ideal the lien offered by this section, will submit, before the expiration of 12 months from the time the very first such assessment ended up being due and payable in the clerk's workplace of the circuit court in the county or city in which such development is situated, a memorandum, verified by the oath of the primary officer of the association or such other officer or officers as the statement might specify, which consists of 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 amount of overdue evaluations currently 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 existing address of the individual to get in touch with to arrange for payment or release of the lien; and

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

It will be the duty of the clerk in whose office such memorandum is submitted as provided in this section to record and index the same as provided in subsection D, in the names of the individuals determined in such memorandum along with in the name of the association. The expense of recording and releasing the memorandum shall be taxed against the individual found accountable in any judgment or order imposing such lien.

C. Prior to submitting a memorandum of lien, a written notification will be sent to the residential or commercial property owner by certified mail, at the residential or commercial property owner's last known address, informing the residential or commercial property owner that a memorandum of lien will be submitted in the circuit notary's office of the appropriate county or city. The notification will be sent at least 10 days before the real filing date of the memorandum of lien.

D. Notwithstanding any other arrangement of this section or any other provision of law requiring files to be recorded in the miscellaneous lien books or the deed books in the clerk's office of any court, on or after July 1, 1989, all memoranda of liens arising under this area shall be tape-recorded 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 evaluations.

E. Any lien refined pursuant to subsection B might be implemented by submitting a civil action to conduct 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 refined under this area shall be initiated after 120 months from the time when the memorandum of lien was tape-recorded. The filing of a civil action to implement any such lien by foreclosure through judicial methods or issuance of notice of nonjudicial foreclosure under neighborhood J 1 shall be considered the organization of an action under this section. Nothing in this subsection shall extend the time within which any such lien may be perfected.

F. The judgment or order in an action brought pursuant to this section shall consist of reimbursement for expenses and affordable attorney costs of the dominating party. If the association dominates, it may also recuperate interest at the legal rate for the amounts secured by the lien from the time each such sum ended up being due and payable.

G. When payment or satisfaction is made from a financial obligation secured by any lien improved pursuant to subsection B, such lien will be launched in accordance with the provisions of § 55.1-339. Any lien that is not so released will subject the lien lender to the penalty stated 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 statement may define, will be considered the appropriately licensed agent of the lien financial institution.

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

I. The association might conduct a judicial or nonjudicial foreclosure sale upon a lot against which the association has perfected one or more liens pursuant to this area if the overall amounts protected remain in excess of $5,000, unique of attorney charges and expenses. For functions of this section, the association shall have the power both to offer and communicate the lot and shall be considered the lot owner's statutory agent for the function of transferring title to the lot.

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

1. The association will provide notification to the lot owner prior to ad required by subdivision 4. The notification will specify (i) the financial obligation secured by the improved lien; (ii) the action required to satisfy the financial obligation secured by the improved lien; (iii) the date, not less than 60 days from the date the notification is given to the lot owner, by which the financial obligation protected by the lien must be satisfied; and (iv) that failure to please the debt secured by the lien on or before the date specified in the notification may lead to the sale of the lot. The notification will further 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 situated to assert the nonexistence of a debt or any other defense of the lot owner to the sale.

2. After expiration of the 60-day notification duration specified in subdivision 1, the association may select a trustee to perform the sale. The consultation of the trustee will be filed in the clerk's workplace of the circuit court in the county or city in which such advancement is positioned. It shall be the task of the clerk in whose workplace such visit is submitted to tape and index the same as provided in subsection D, in the names of the individuals identified in such visit along with in the name of the association. The association, at its option, might from time to time remove the trustee and designate a successor trustee.

3. If the lot owner meets the conditions defined in this neighborhood prior to the date of the foreclosure sale, the lot owner will deserve to have enforcement of the refined lien ceased prior to the sale of the lot. Those conditions are that the lot owner (i) please the debt secured by lien that is the subject of the nonjudicial foreclosure sale and (ii) pay all expenditures and costs sustained in perfecting and implementing the lien, including advertising costs and sensible lawyer fees.

4. In addition to the ad required by neighborhood 5, the association will provide written notification of the time, date, and location of any suggested sale in execution of the lien, consisting of the name, address, and telephone number of the trustee, by hand delivery or by mail to (i) today owner of the residential or commercial property to be sold at his last recognized 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 at least one month prior to the proposed sale and whose address is tape-recorded with the deed of trust, and (iii) any assignee of such a note protected by a deed of trust, supplied that the assignment and address of the assignee are likewise tape-recorded at least one month prior to the proposed sale. Mailing a copy of the ad or the notice containing the very same details to the owner by accredited or registered mail no less than 2 week prior to such sale and to lienholders and their designates, 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 a sufficient compliance with the requirement of notification.

5. The ad of sale by the association will remain in a paper having a general flow in the county or city in which the residential or commercial property to be sold, or any portion of such residential or commercial property, is located pursuant to the list below provisions:

a. The association shall promote once 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 adjoining to a city, publication of the ad on five different days, which may be consecutive days, shall be deemed appropriate. The sale shall be held on any day following the day of the last ad that is no earlier than 8 days following the very first advertisement nor more than 30 days following the last ad.

b. Such ad will be positioned because section of the paper where legal notifications appear or where the type of residential or commercial property being offered is normally marketed for sale. The ad of sale, in addition to such other matters as the association discovers proper, will set forth a description of the residential or commercial property to be offered, which description need not be as extensive as which contained in the deed of trust however will recognize the residential or commercial property by street address, if any, or, if none, shall provide the general location of the residential or commercial property with reference to streets, paths, or known landmarks. Where offered, tax map identification might be used but is not needed. The advertisement shall likewise consist of the date, time, place, and regards to sale and the name of the association. It shall state the name, address, and telephone number of the representative, agent, or lawyer who may have the ability to react to inquiries concerning the sale.

c. In addition to the ad needed by subdivisions a and b, the association may even more market as the association finds appropriate.

6. In case of post ponement of sale, which post ponement shall be at the discretion of the association, advertisement of such delayed sale will be in the same manner as the initial ad of sale.

7. Failure to adhere to the requirements for advertisement contained in this area 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 duties upon a sale:

a. Written one-price quotes might be made and shall be received by the trustee from the association or anyone for entry by announcement at the sale. Anyone besides the trustee may bid at the foreclosure sale, including a person who has submitted a composed one-price quote. Upon request to the trustee, any other bidder in presence at a foreclosure sale shall be permitted to examine written quotes. Unless otherwise supplied in the statement, the association might bid to purchase the lot at a foreclosure sale. The association may own, rent, encumber, exchange, sell, or communicate the lot. Whenever the composed quote of the association is the highest quote submitted at the sale, such written bid will be filed by the trustee with his account of sale required under neighborhood J 10 and § 64.2-1309. The written quote sent pursuant to this subsection might be prepared by the association, its agent, or its attorney.

b. The association might require any bidder at any sale to publish a cash deposit of as much as 10 percent of the sale price before his quote is received, which shall be reimbursed to him if the residential or commercial property is not sold to him. The deposit of the effective bidder shall be used to his credit at settlement, or, if such bidder fails to finish his purchase immediately, the deposit shall be used to pay the costs and costs of the sale, and the balance, if any, shall be retained by the association in connection with that sale.

c. The association shall receive and receipt for the profits of sale, no buyer being required to see to the application of the proceeds, and apply the same in the following order: first, to the reasonable expenditures of sale, including attorney fees; second, to the satisfaction of all taxes, levies, and assessments, with expenses and interest; 3rd, to the fulfillment of the lien for the owners' evaluations; 4th, to the complete satisfaction in the order of concern of any remaining inferior claims of record; and fifth, to pay the residue of the earnings to the owner or his assigns, offered, however, that, as to the payment of such residue, the association will not be bound by any inheritance, devise, conveyance, assignment, or lien of or upon the owner's equity, without real notice thereof prior to circulation.

9. The trustee shall provide to the buyer a trustee's deed conveying the lot with unique service warranty of title. The trustee will 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 shall file an accounting of the sale with the commissioner of accounts pursuant to § 64.2-1309, and every account of a sale shall be taped pursuant to § 64.2-1310. In addition, the accounting will be offered for inspection and copying pursuant to § 55.1-1815 upon the composed request of the prior lot owner, the existing lot owner, or any holder of a recorded lien versus the lot at the time of the sale. The association will preserve a copy of the accounting for a minimum of 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 disturbed unless within 12 months from the confirmation of the accounting by the commissioner of accounts the sale is set aside by the court or an appeal is filed in the Court of Appeals or approved by the Supreme Court and an order is entered requiring such sale to be reserved.