55-59.4 - Powers and duties of trustee in event of sale under or satisfaction of deed of trust. - Virginia Statutes

§ 55-59.4. Powers and duties of trustee in event of sale under orsatisfaction of deed of trust.

A. In the event of sale under a deed of trust, the trustee shall have thefollowing powers and duties in addition to all others:

1. Written one-price bids may be made and shall be received by the trusteefrom the beneficiary or any other person for entry by announcement of thetrustee at the sale. Any person other than the trustee may bid at theforeclosure sale, including a person who has submitted a written one-pricebid. Upon request to the trustee or trustees, any other bidder in attendanceat a foreclosure sale shall be permitted to inspect written bids. Wheneverthe written bid of the beneficiary is the highest bid submitted at the sale,such document shall be filed by the trustee with his account of sale requiredunder § 26-15. The written bid submitted pursuant to this subsection may beprepared by the beneficiary, its agent or attorney.

2. The trustee may require of any bidder at any sale a cash deposit of asmuch as ten per centum of the sale price (unless the deed of trust specifiesa higher or lower maximum, which may be done by the words "bidder's depositof not more than ________ dollars may be required," or words of likepurport), before his bid is received, which shall be refunded to the bidderunless the property is sold to him, otherwise to be applied to his credit insettlement or, should he fail to complete his purchase promptly, to beapplied to pay the costs and expense of sale and the balance, if any, to beretained by the trustee as his compensation in connection with that sale.

3. The trustee shall receive and receipt for the proceeds of sale, accountfor the same to the commissioner of accounts pursuant to § 26-15 and applythe same, first, to discharge the expenses of executing the trust, includinga reasonable commission to the trustee; secondly, to discharge all taxes,levies, and assessments, with costs and interest if they have priority overthe lien of the deed of trust, including the due pro rata thereof for thecurrent year; thirdly, to discharge in the order of their priority, if any,the remaining debts and obligations secured by the deed, and any liens ofrecord inferior to the deed of trust under which sale is made, with lawfulinterest; and, fourthly, the residue of the proceeds shall be paid to thegrantor or his assigns; provided, however, that the trustee as to suchresidue shall not be bound by any inheritance, devise, conveyance, assignmentor lien of or upon the grantor's equity, without actual notice thereof priorto distribution; provided further that such order of priorities shall not bechanged or varied by the deed of trust. The trustee's deed shall show thetrustee's mailing address.

B. Upon discharge (other than by sale by the trustee) of all debts, dutiesand obligations imposed by the deed upon the grantor, including any expensesincurred preparatory to sale, then upon the grantor's request the trusteeshall execute and deliver a good and sufficient deed of release at thegrantor's own proper costs and charges.

(1979, c. 12; 1997, c. 842; 1998, c. 610; 2010, c. 417.)