How Montgomery County Conducts Tax Sales: A Simple Guide

Introduction

Montgomery County, Virginia, sells tax-delinquent properties through public auctions to recover unpaid property taxes. These sales allow buyers to purchase real estate at competitive prices. Unlike traditional property sales, tax auctions follow a strict legal process.

Auction dates change, so always check the Auction Calendar for scheduled auctions.

How the Tax Sale Process Works

Identifying Properties for Sale

• The Treasurer’s Office tracks properties with unpaid real estate taxes.
• If owners fail to pay after multiple notices, the county takes legal action.
• Property owners receive final warning letters before their property is listed for sale.

Auction Announcement and Public Notice

• Montgomery County schedules tax sales as needed throughout the year.
• The county posts auction details on its official website and in local newspapers.
• Notices include property details, auction procedures, and bidder deadlines.

Simulcast Auction Format

• The county runs a Timed-to-Live Simulcast auction, combining online and in-person bidding.
• In-person bidding happens at the Montgomery County Government Center.
• Online bidders participate in real time through the auctioneer’s platform.

How to Register and Bid

Registering for the Auction

• Buyers must register before bidding starts, either online or in person.
• The auctioneer verifies identity and payment details for each bidder.
• Registered bidders receive instructions on auction rules and procedures.

Bidding Process

• The auctioneer presents each property one at a time.
• Bidders place offers in person or through the online system.
• The highest bid at the auction’s close wins the property.

Bidding Fees and Requirements

• The county applies a 10% buyer’s premium or a $150 flat fee, whichever is higher.
• Buyers should review auction rules and additional costs before bidding.

Payment and Closing

Deposit and Full Payment

• Winning bidders must pay the full bid amount immediately after the auction.
• Acceptable payment methods include personal checks, cashier’s checks, or money orders.
• Cash payments are not allowed.

Court Approval and Deed Transfer

• The Circuit Court must confirm each tax sale before ownership transfers.
• If the court rejects the sale, the county refunds the winning bidder’s payment.
• After court approval, the buyer receives a Special Warranty Deed.

Finalizing Ownership

• Buyers must record the deed with the county and pay any applicable recording fees.
• The new owner is responsible for future property taxes.

Due Diligence and Property Research

Researching Property Conditions

• All properties sell “as-is, where-is, and if-is.”
• The county does not provide inspections or make repairs.

Checking Public Records

• Buyers can research property history, tax records, and maps through the county’s website.
• Conducting a title search is recommended to check for outstanding liens or legal issues.

Visiting the Property

• Many properties may still be occupied.
• The buyer must handle any legal eviction process if necessary.
• Some properties may have unpaid utility bills or municipal fees, which the buyer must cover.

Additional Auction Details

Notices for Upcoming Sales

• Montgomery County updates its website with auction schedules and property lists.
• Interested buyers can sign up for email alerts to receive updates.

Legal Considerations

• The Circuit Court must approve all tax sales before ownership transfers.
• Some properties may be removed if owners pay their tax debt before the sale.

Post-Auction Responsibilities

• Buyers must arrange financing before bidding, as full payment is due immediately.
• If a buyer fails to complete payment, they lose their deposit and may be banned from future auctions.

Useful Links

• 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! 

Conclusion

Montgomery County sells tax-delinquent properties through public auctions. Buyers must register, bid competitively, and complete payments on time to secure their purchases. Since all properties sell as-is, thorough research before bidding is essential.

Stay updated on future sales—check the Auction Calendar for scheduled auctions.

Call to Action

Don’t miss out on valuable investment opportunities. Visit our auction calendar today to explore available properties. If you need help, book a call with an expert or browse our free resources for valuable investment tips.

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