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1. Who can purchase property at a tax sale?

The auctions are held open to the public. Anyone can bid on a property. Bidders may include adjacent property owners, neighborhood organizations, Community Development Corporations, investors or other interested parties. Bidders are encouraged to have all real estate taxes, personal property taxes, business license fees, meals taxes, lodgings or admissions taxes, whether as an individual, company, corporation or partnership, paid in full. Bidders are also encouraged to have any outstanding environmental code, building code or zoning code Notices of Violation remedied prior to bidding. Please note: Any successful or highest bidder with weed abatements or demolition abatements, inoperable vehicle violations, vacant or derelict board up house violations, court citing violations and other code violations, unpaid assessments as well as delinquent taxes will be disqualified and the sale will be offered to the next highest bidder. For additional information, view our bidder qualification page.

2. If I purchase a property at a tax sale, will I receive title to the property?

The sale of each parcel of property is subject to city and court approval. It is possible that a purchase could be denied based on the bid price being substantially lower than the value of the property. Usually bidders receive title within 6 to 8 weeks after the tax sale.

3. If I purchase a property which is encumbered by a mortgage, taxes or weed abatement liens, am I responsible for these debts?

No. As part of the tax sale proceedings, all parties of interest are notified of pending litigation to sell the property for delinquent real estate taxes. Virginia law permits the property to be transferred free and clear of any such encumbrances to the purchaser upon the confirmation of the sale by the Court.

4. If I purchase a property at a tax sale, do I have to pay the back taxes?

No, the purchaser does not have to pay any back taxes or city assessments. The property is sold free and clear of taxes and nuisance abatement liens, and legal fees. The purchaser pays the bidder's premium, high bid price, and the cost of recording the deed in the city of Roanoke Circuit Court Clerk's Office.

5. If I purchase a property at a tax sale, can the owner come back later and reclaim the property?

No, property owners have until 5 p.m. of the day before the auction to redeem the property by paying delinquent taxes, legal fees, and assessments. Successful bidders at the auction obtain title to the property and the prior owner has no legal claim on the property.

The property is sold in gross and not by the acre and is sold free of all claims of any creditor, person, or entity, including those claims of beneficiaries under any deed of trust or mortgage, as provided by Virginia Code Ann. § 58.1-3967 (1950, as amended), but subject to all objections, rights, reservations, leases, covenants, conditions, restrictions, easements, encroachments, overlaps, overhangs, deficiency in quantity, all questions of boundaries, location and acreage which a current and accurate survey would disclose, roadways, unrecorded easements, and any other matter, recorded or unrecorded, as may lawfully affect the property or which would be disclosed by an inspection and accurate survey of the premises. No warranty is made as to the insurability of title.

6. What is the minimum bid I should expect to pay?

All sales are required to be confirmed by the court. The Special Commissioner of sale will report on the overall bidding of the property, the appraised and/or assessed values of the property, the outstanding taxes due, and the bid amount received for the property at the auction. The bid should bear some relation to the value of the property. In the event the bid amount is unreasonable in relation to the approximate value of the property or substantially below the minimum bid, the Special Commissioner may recommend that the sale not be approved. Additionally, the Court may decide not to approve the sale on its own, or may determine that the property should be resold.

7. Does the City of Roanoke offer a financing program or discounts?

No. Purchasers or bidders are required to secure their own funding.

8. If I purchase property at an auction and later become dissatisfied with the property, can I cancel my bid and get a refund of the deposit or purchase price?

Once the sale is confirmed by the Court, you become the legal owner of the property and the funds paid are not refundable. If prior to confirmation of sale, you become dissatisfied with the property, you will not be entitled to a refund of your deposit. In most cases your refund will be forfeited. The 2nd highest bidder may be contacted and the property may be sold to that bidder or the property may be resold at a 2nd auction, subject to the Court’s discretion. In such an event, you may be responsible for any costs and fees incurred to sell the property for a second time and your initial deposit is subject to forfeit.

9. What type of deed do I receive following confirmation of the sale?

A Special Commissioner’s Deed, a type of special warranty deed, will be available at the local Circuit Court Clerk’s Office for recordation. You are responsible for any recordation fee.

10. Will I be able to get title insurance on a property I purchase at an auction?

The City of Roanoke cannot guarantee that title insurance will be available, since underwriting practices vary from one company to the next with regards to tax sale property. If the availability of title insurance is important to you, you are urged to explore the matter further with a title company prior to bidding.

11. Can a previous property owner reclaim property after I have purchased it at the auction?

Maybe. There is a redemption period to allow the previous owner to be heard by the court. We cannot provide any legal advice regarding this matter, except to advise you to seek your own legal counsel if you are unsure about the redemption period applicable to the property.

For questions call City Treasurer at 540-853-2561.