Court-Appointed Special Commissioner of Sale
When real property must be sold as part of a Virginia judicial proceeding, the Circuit Court may appoint a Special Commissioner of Sale to conduct the sale under the authority and supervision of the Court.
Joshua E. Bushman, Esq., of Bushman Law Group in Alexandria, Virginia, is available to serve as a court-appointed Special Commissioner of Sale in Northern Virginia. Joshua E. Bushman is included on the Fairfax County Circuit Court Special Commissioners of Sale list, and for the City of Alexandria Circuit Court.
A Special Commissioner of Sale does not act simply as an ordinary private seller or real estate agent. The Commissioner is appointed by the Court for a particular proceeding and derives authority from the Court’s decree of sale and applicable Virginia law.
What Is a Special Commissioner of Sale in Virginia?
A Special Commissioner of Sale is a person appointed by a court to carry out a judicial sale of property.
Virginia Code § 8.01-96 provides that when a court decrees a sale under Virginia law, the court may direct the property to be sold for cash or upon such credit and terms as the court considers appropriate and may appoint one or more special commissioners to make the sale.
The Special Commissioner therefore acts as an officer appointed by the Court for purposes of carrying out the decree of sale. The scope of the Commissioner’s authority in a particular case is determined by the Court’s order and the law governing the proceeding.
This distinction is important. A Special Commissioner of Sale should not be confused with a Commissioner in Chancery, whose role generally involves receiving and considering evidence and reporting findings or recommendations to the Circuit Court. Although Virginia courts use both types of commissioners, their functions are different.
Authority of a Special Commissioner of Sale
The Court Controls the Judicial Sale
The Commissioner’s authority begins with the decree entered by the Circuit Court.
Under Virginia Code § 8.01-96, a court decreeing a sale may:
- authorize the sale of property in any part of Virginia;
- determine whether the sale will be for cash or on credit;
- establish the terms of the sale; and
- appoint one or more Special Commissioners to conduct the sale.
For that reason, there is no single set of sale terms applicable to every Commissioner sale.
The decree of sale entered in the individual case controls the Commissioner’s authority, supplemented by the provisions of Virginia law applicable to the judicial sale.
Protection and Handling of the Sale Proceeds
Virginia law also protects funds received in connection with a judicial sale.
Virginia Code § 8.01-96 provides that a court-appointed Special Commissioner may not receive money under the decree until the Commissioner gives bond, with approved security, in an amount prescribed by the Court. The bond is conditioned upon the faithful performance of the Commissioner’s duties and the accounting for and payment of money as the Court directs.
Accordingly, the receipt and disposition of sale proceeds are matters undertaken under the authority and supervision of the Circuit Court.
How Does a Special Commissioner’s Sale Work?
The precise procedure differs depending upon the nature of the case and, most importantly, the terms of the Court’s decree. A judicial sale commonly involves the following general stages.
1. Entry of a Decree of Sale
The Circuit Court first determines that a sale is authorized and enters a decree appointing the Special Commissioner and establishing the Commissioner’s authority.
Virginia Code § 8.01-96 permits the Court to establish the terms upon which the property will be sold.
2. Review of the Property and Court’s Decree
The Special Commissioner reviews the decree and carries out the responsibilities assigned by the Court.
Depending upon the particular decree, the sale may involve requirements concerning the method of sale, advertising, deposits, payment terms, and other conditions.
Because those matters can vary, prospective purchasers should carefully review the published notice and terms governing the particular property being offered for sale.
3. Marketing and Offering the Property for Sale
The property is offered for sale in the manner authorized by the Court.
The method is not necessarily the same in every case. Judicial sales may, for example, be conducted by public auction when that method is authorized by the decree.
4. Bidding or Submission of an Offer
The Commissioner receives bids or offers in the manner authorized by the decree and the announced terms of sale.
A bidder should not assume that the purchase terms applicable to an ordinary private real estate transaction apply to a judicial sale. The requirements concerning deposits, financing, contingencies, closing and other matters are established by the terms governing the particular sale.
5. Court Confirmation, When Required
When the applicable decree requires confirmation, the proposed sale is submitted to the Circuit Court for consideration.
For example, published Fairfax and Alexandria judicial-sale notices expressly provide that the sales described in those notices are subject to confirmation by the applicable Circuit Court.
The successful bid therefore should not automatically be equated with a completed conveyance when Court confirmation remains required.
6. Payment, Conveyance and Distribution
Once the requirements of the decree and any required Court approval have been satisfied, the transaction proceeds toward payment and conveyance in accordance with the Court’s orders.
The Special Commissioner accounts for funds received and handles those funds as directed by the Court. Virginia Code § 8.01-96 specifically requires the Commissioner’s bond to secure the faithful discharge of duties and the accounting for and payment of money as the Court directs.
Compensation of a Special Commissioner of Sale
Virginia law specifically addresses the commission that may be allowed for services performed under a decree of sale.
Under Virginia Code § 8.01-109, for services under a decree for sale, including collecting and paying over the proceeds, there may be allowed a commission of:
- 5% of amounts up to and including $100,000; and
- 2% of amounts exceeding $100,000.
If one commissioner or officer makes the sale and another collects the proceeds, the Court apportions the commission between them as the Court considers just. Section 8.01-109 further provides that each separate piece of property sold constitutes a separate sale for purposes of calculating the statutory commission, even if multiple properties are sold under one decree.
Example of the statutory calculation
If one property is sold for $500,000, the statutory percentages would produce the following calculation:
First $100,000:
5% × $100,000 = $5,000
Remaining $400,000:
2% × $400,000 = $8,000
Total: $13,000
Joshua E. Bushman as Special Commissioner of Sale in Fairfax County
Appointment as Special Commissioner occurs through the Court’s order or decree in the individual judicial proceeding.
Joshua E. Bushman’s Virginia real estate practice provides relevant experience in addressing the real-property and transactional issues that may arise in carrying out a court-ordered sale.
Joshua E. Bushman as Special Commissioner of Sale in Alexandria
Bushman Law Group is located in Alexandria, Virginia, and Joshua E. Bushman may also serve as a Special Commissioner of Sale in Alexandria when appointed by the Circuit Court.
Information for Prospective Purchasers
Buying property from a Special Commissioner can differ significantly from purchasing property in an ordinary negotiated real estate transaction.
Prospective purchasers should carefully examine:
- the notice of sale;
- the terms and conditions announced for the particular sale;
- the required deposit and payment provisions;
- whether the sale is subject to Court confirmation;
- the condition in which the property is being offered;
- title matters affecting the property; and
- the Court’s decree and other information made available concerning the sale.
Court-Appointed Service With Experience in Virginia Real Estate
A Special Commissioner of Sale occupies a position of responsibility within a judicial proceeding. The Commissioner must carry out the Court’s decree, appropriately administer the sale entrusted to the Commissioner, account for funds received, and complete the responsibilities assigned by the Court.
Joshua E. Bushman brings experience in Virginia real estate transactions, title matters, real estate litigation, and court-supervised proceedings to his work as a Special Commissioner of Sale.
Contact Bushman Law Group
Bushman Law Group
Joshua E. Bushman, Esq.
675 South Washington Street
Alexandria, Virginia 22314
703-845-9070
info@theblg.com
The Fairfax Circuit Court’s published Special Commissioners list confirms this firm address, telephone number, and email address for Joshua E. Bushman.
Parties, attorneys, prospective purchasers, and others seeking information concerning a particular judicial sale being administered by Joshua E. Bushman may contact Bushman Law Group for information concerning that proceeding.
Important Notice: A Special Commissioner of Sale is appointed by the Circuit Court and performs the duties assigned by the Court. The Commissioner’s role is separate from representation of a private client. Contacting a Special Commissioner regarding a court-appointed sale does not, by itself, establish an attorney-client relationship.