How Charlottesville, Virginia, Conducts Tax Sales

Charlottesville’s tax sales give investors a chance to buy properties when owners fail to pay property taxes. The city follows a legal process to auction off these properties, offering real estate opportunities at competitive prices. Understanding how the process works can help you make smart investment decisions.

Why Charlottesville Holds Tax Sales

Charlottesville enforces strict tax deadlines to ensure property owners stay current with their taxes.

• Owners must pay real estate taxes twice a year—on June 5th and December 5th.
• If owners miss payments, the city adds a 10% penalty and charges 10% annual interest.
• If taxes remain unpaid for three years, the city takes legal action and prepares the property for auction.

Check the auction calendar for upcoming sales.

How the Tax Sale Process Works

Charlottesville follows a step-by-step process to conduct tax sales. The city selects delinquent properties, notifies owners, gets court approval, and auctions off the properties.

Here’s how the process works:

1. Legal Action Begins – The city files a case in court to approve the auction.
2. Auction Notice & Property Listings – The city announces available properties and gives owners a final chance to pay.
3. Public Auction – Bidders compete in a live auction, and the highest bid wins.
4. Payment Requirements – Buyers must meet deposit and full payment deadlines.
5. Finalizing the Sale – The court confirms the sale, and buyers receive the deed.

1. Legal Action Begins

Charlottesville reviews unpaid tax records and selects properties eligible for sale.

• The Special Commissioner files a case in court to get approval.
• A judge issues an order, allowing the city to proceed with the auction.

2. Auction Notice & Property Listings

The city ensures the public knows about upcoming tax sales.

• A list of available properties is published online and in newspapers.
• Property owners receive a final notice with a deadline to pay their unpaid taxes.
• If owners do not pay, the property moves forward to auction.

3. Public Auction

Charlottesville conducts live, in-person auctions for tax-delinquent properties.

• Auction Location – Albemarle County Circuit Courthouse, 501 E. Jefferson Street, Charlottesville, VA.
• In-Person Attendance Required – Bidders must be present to participate.
• Highest Bid Wins – The property goes to the highest bidder.
• Legal Paperwork – Winning bidders must sign an Offer of Purchase and Notice of Confirmation Hearing immediately.

4. Payment Requirements

Winning bidders must make payments on time to secure their property.

• Deposit Due on Auction Day – Buyers must pay a percentage of the winning bid upfront.
• Full Payment Deadline – The court sets a deadline (usually 10 days) for the remaining balance.
• Missed Payments – If a buyer fails to pay on time, the property may go to the next highest bidder.

5. Finalizing the Sale

The city must complete legal procedures before transferring ownership.

• The court reviews and confirms each sale.
• Once the buyer pays in full, the Special Commissioner transfers the property deed.
• Buyers must cover additional costs, including deed recording fees and future property taxes.

Things to Consider Before Bidding

Tax sale properties come with risks and buyer responsibilities.

1. Properties Are Sold As-Is

The city does not inspect properties or offer guarantees.

• No Refunds – Buyers must accept the property in its current condition.
• Research Before Bidding – Some properties may have structural issues or need repairs.

2. Title and Liens

Charlottesville tax sales clear previous tax debts and liens, but buyers should still do their research.

• Check Property Records – Confirm ownership details before bidding.
• Consult a Lawyer – A real estate attorney can help verify the title.

3. Legal and Financial Responsibilities

Winning bidders must handle legal and financial obligations after the sale.

• Deed Recording Fees – Buyers must pay to record the deed with the county.
• Future Property Taxes – Buyers must keep up with future tax payments to avoid losing the property.
• Legal Assistance – A lawyer can help navigate title concerns and legal paperwork.

Useful Links & Resources

• Learn How to Profit from Virginia Real Estate Auctions 
• Let’s talk about Tax Deeds and how you can profit from them!
• Discover Tax Deeds and how you can find property for as little as $50! 

Don’t Miss Out!

Check the Auction calendar and get ready for the next tax sale. These auctions offer great investment opportunities, but preparation is key. If you are in need of expert guidance, you can book a consultation or explore our free resources for tips on making informed tax sale investments

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