§ 8.01-98.Sales of land when purchase price insufficient to pay taxes, etc.

Section 8.01-98 addresses what happens when a court-ordered land sale cannot raise enough money to pay off every delinquent tax, levy, and assessment against the property. If the court finds that the real estate cannot be sold for enough to satisfy those liens in full, but the purchase price offered is adequate and reasonable under the circumstances, the court still confirms the sale rather than holding out for a higher bid that may never come.

Once confirmed, the court decrees how the proceeds get divided: first the costs of the court proceeding come off the top, and what remains is paid out pro rata to the taxes, levies, and assessments owed to the Commonwealth or any political subdivision. Because the liens are being paid proportionally rather than in full, the court’s decree is then certified to the treasurer who holds the delinquent tax books. That treasurer marks the lien satisfied on the delinquent-lands list, even though the underlying debt was not paid in full — clearing the record so the sale can close and title can pass.