HB 2362 Virginia House of Delegates · 2025 Regular Session

Sale of real estate for delinquent taxes; procedure, enforcement of liens, orders of publication.

Summary

Sale of real estate for delinquent taxes; procedure; enforcement of liens; orders of publication. Amends certain procedures relating to the sale of real estate to recover delinquent real estate taxes, including the enforcement of liens for taxes assessed upon real estate. The bill clarifies that any party or entity with an interest in the subject real estate, including a lienor, a person with a claim of title, or the beneficiary and trustees under a deed of trust, shall be named as party defendants in a proceeding for the sale of such real estate. The bill also makes the process by which notice by publication is given for a proceeding to enforce a lien for delinquent real estate taxes consistent with other actions where notice by publication is authorized. This bill is a recommendation of the Boyd-Graves Conference.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

House of Delegates Passage

Mar 2025

Senate Passage

Mar 2025

Signed into Law

Mar 2025

Introduced Jan 8, 2025 Signed Mar 21, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Enrolled → Chaptered · 3 edits

MINOR

This bill converts HB 2362 from an enrolled draft to a chaptered law, making it officially part of the Virginia Code. The substantive text of the legislation remains unchanged, with only formatting adjustments and the addition of the chapter number (267) and approval date (March 21, 2025).

Scope change

No substantive change to the bill's scope or applicability; this is a procedural conversion from draft to enacted law.

TECHNICAL

Added chapter number (267) and approval date (March 21, 2025) to indicate official enactment.

Removed draft session headers and formatting markers used during the legislative process.

Reformatted text with consistent indentation and spacing to match official chaptered law standards.

Introduced → Enrolled · 7 edits · Mar 21, 2025

MODERATE

This bill amends Virginia laws governing the sale of real estate for delinquent taxes, primarily updating procedures for notice, publication, and special commissioner appointments. The changes streamline the process for selling tax-delinquent properties, particularly for lower-value properties, and add provisions for installment payment agreements to prevent sales when owners can pay over time.

Scope change

The bill applies to all Virginia localities but introduces new thresholds and procedures specifically for properties with assessed values of $75,000 or less and $100,000 or less, as well as properties in areas with fiscal stress.

ELIGIBILITY

Properties with assessed values of $100,000 or less can now be sold earlier if delinquent taxes remain unpaid after the first anniversary of the due date, rather than waiting until the second anniversary.

Special commissioner appointments to transfer property directly to localities (instead of public auction) now apply to properties with assessed values of $75,000 or less when tax liens exceed certain thresholds.

For areas with fiscal stress scores of 100 or higher, the tax lien thresholds for special commissioner appointments are lowered to allow earlier intervention on properties up to $150,000 in value.

REQUIREMENT

New installment payment agreements allow owners to pay delinquent taxes over up to 72 months instead of facing immediate sale, with automatic suspension of sale proceedings during the agreement period.

Updated notice requirements to include specific addresses for property owners and lien creditors, improving the ability to notify interested parties before tax sales.

ENFORCEMENT

New provisions allow nonprofit organizations to purchase structural improvements separately from land under specific ground lease arrangements to support affordable housing development.

TIMELINE

Final orders confirming sales must now wait at least 90 days after notice to parties before being entered, providing more time for objections.

Floor votes · Senate Feb 17, 2025 · House of Delegates Jan 30, 2025

How they voted

39–0

Passed · 1 other

Total votes 40

Feb 17, 2025

D Democratic21

21 Yea

100% Yea

R Republican19

18 Yea 1

94% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 21, 2025

Signed into law

Approved by Governor-Chapter 267 (Effective 07/01/25)

executive

Mar 10, 2025

Upper · Passed

Signed by President

upper

Mar 7, 2025

Lower · Passed

Signed by Speaker

lower

Mar 7, 2025

Lower · Passed

Bill text as passed House and Senate (HB2362ER)

lower

Feb 19, 2025

Upper · Passed

Passed Senate (37-Y 3-N)

upper

Feb 18, 2025

Upper · Passed

Passed by for the day

upper

Feb 17, 2025

Upper · Passed

Passed by for the day

upper

Feb 14, 2025

Upper · Passed

Reported from Finance and Appropriations (14-Y 0-N)

upper

Feb 10, 2025

Upper · Passed

Reported from Courts of Justice and rereferred to Finance and Appropriations (14-Y 0-N 1-A)

upper

Jan 31, 2025

Committee

Referred to Committee for Courts of Justice

upper

Jan 30, 2025

Lower · Passed

Read third time and passed House (94-Y 2-N)

lower

Jan 24, 2025

Lower · Passed

Reported from Courts of Justice (21-Y 1-N)

lower

Jan 20, 2025

Lower · Passed

Subcommittee recommends reporting (8-Y 0-N)

lower

Jan 17, 2025

Committee

Assigned Courts sub: Civil

lower

Jan 8, 2025

Committee

Referred to Committee for Courts of Justice

lower

1 primary · 3 co-sponsors