State Foreclosure Law Library

us-virgin-islands

16 min read

U.S. Virgin Islands — Tax & Mortgage Foreclosure

Legal information, not legal advice. Verify against the cited primary sources before acting. Last verified: 2026-06-01.

Territory note. The U.S. Virgin Islands (USVI) is an unincorporated U.S. territory. It does not use the 50-state county/treasurer model. Real property taxes are administered territory-wide (no counties; the islands are organized into two tax districts — St. Thomas/St. John and St. Croix), and the Office of the Lieutenant Governor — not a county treasurer or sheriff — both bills the tax and conducts the delinquent-tax attachment and public auction. There is no tax-lien-certificate market: the territory sells the property itself at auction subject to a one-year statutory redemption. The governing law is Title 33, Chapter 89 of the Virgin Islands Code (V.I.C.).

0. Identity & Classification

  • Recording unit: territory-wide; two tax/judicial districts (St. Thomas/St. John, St. Croix). Deeds recorded at the Office of the Recorder of Deeds (within the Lieutenant Governor’s Office). Count: 2 districts (no counties/boroughs).
  • Tax sale type: redeemable deed / government-purchase auction — the property is sold at public auction (or bid in by the Government) and a certificate of purchase issues, subject to a one-year redemption; it is not a tax-lien-certificate state. [33 V.I.C. §§ 2541, 2547, 2581–2584]
  • Tax foreclosure process: administrative — the Lieutenant Governor attaches and sells delinquent property without a court judgment (an “attachment and sale,” 33 V.I.C. ch. 89, subch. III). Judicial review is available to contest a sale.
  • Mortgage foreclosure process: judicial (District Court of the Virgin Islands / Superior Court; sales conducted by the V.I. Marshal). → see needs_verification below.
  • Selling authority: Office of the Lieutenant Governor (Division of Real Property Tax / Office of the Tax Collector).
  • Statutory home: Title 33 (Taxation and Finance), Subtitle 2 (Property Taxes), Chapter 89 — Levy and Collection of Tax; Subchapter III (Attachment and Sale, §§ 2541–2554) and Subchapter IV (Redemption, §§ 2581–2584). Source: VI Inspector General report INR-01-30-14 (quoting the statutes) — https://www.viig.org/wp-content/uploads/2015/09/INR-01-30-14.pdf
  • Tyler v. Hennepin compliance: compliant on its face. 33 V.I.C. § 2547 directs that after delinquent taxes, sewer fees, penalties and costs are deducted from the sale proceeds, “any remaining funds … are to be paid to the taxpayer.” Because surplus is statutorily returned to the former owner, the USVI tax-sale scheme does not effect the kind of equity forfeiture condemned in tyler-v-hennepin-county. (The separate government bid-in path under § 2552, where no surplus is generated, does not implicate Tyler because the Government bids only the amount owed.) Source: INR-01-30-14 (quoting § 2547) — https://www.viig.org/wp-content/uploads/2015/09/INR-01-30-14.pdf

1. Tax Sale Mechanics

  • What is sold: the real property itself, via a certificate of purchase that ripens into absolute title (free of mortgages, liens, encumbrances) only after the one-year redemption period expires and the certificate is recorded with the Recorder of Deeds. [33 V.I.C. § 2547; redemption §§ 2581–2584] — INR-01-30-14
  • Bidding method: highest-bid auction. “The said property shall be sold by the Lieutenant Governor at public auction to the highest bidder. However, no bid shall be accepted for a less amount than the taxes and public sewer system user fees … together with all costs and penalties thereon ….” 33 V.I.C. § 2547. Awarding to a second-highest bidder is unlawful (see VI Attorney General Advisory Opinion, Aug. 28, 2014). — INR-01-30-14
  • Interest or penalty (redemption rate): redemption carries 12% per annum on the bid amount plus a $15 administrative fee (plus taxes/fees accruing during redemption). 33 V.I.C. § 2581 / § 2584. — INR-01-30-14
  • Minimum bid composition: delinquent real property taxes + public sewer system user fees + penalties + costs (including advertising costs prorated among taxpayers and a $5.00 service-of-notice fee). [33 V.I.C. §§ 2546, 2547] — INR-01-30-14
  • Sale frequency / typical month: ad hoc — the Lieutenant Governor schedules auction “events” by district as delinquencies warrant (e.g., a 2012–2013 series targeting parcels ≥10 years delinquent; a 2024 delinquency list was published). No fixed annual calendar. → needs_verification (current calendar).
  • Venue: in person, by district (St. Thomas/St. John and St. Croix). → needs_verification (any online platform).
  • Platform vendors: none identified (manual, in-person auctions). → needs_verification.
  • Registration & deposit: bidders register day-of; the winning bidder must post a 10% cash deposit of the bid (historically due by 4:00 p.m. on the auction day), with the balance due within 10 days of the sale; the deposit is forfeited on default. 33 V.I.C. § 2547. — INR-01-30-14
  • Subsequent taxes (“subs”): the redeeming owner must also pay real property taxes and sewer fees accruing between the sale date and redemption. 33 V.I.C. § 2581 / § 2584. — INR-01-30-14

2. Right of Redemption → see right-of-redemption

  • Pre-sale right: yes — the owner may pay the delinquency (or enter a payment plan) at any time before the auction; the Notice of Attachment must state the date the property will be sold and the date the redemption period expires. 33 V.I.C. § 2541. — INR-01-30-14
  • Post-sale period: one (1) year from the date of sale. The owner may redeem “within one year from the date of sale at the auction, by paying the full amount of the bid accepted, with interest at the rate of 12% per annum, and all outstanding property taxes and sewer system user fees due for the period between the date of the sale and the date the owner redeems the property, together with a $15 fee.” 33 V.I.C. § 2581. The parallel section for property purchased by the Government at auction is § 2584. — INR-01-30-14
  • Who may redeem: the owner whose property was sold; per § 2584, also “his heirs or assigns or any one having any right or interest in his property.” — INR-01-30-14
  • Redemption amount formula: winning bid + 12%/yr interest + post-sale taxes/sewer fees + $15 administrative fee. [§§ 2581, 2584] — INR-01-30-14
  • Premium to certificate holder: the 12% statutory interest functions as the purchaser’s return; no separate premium schedule. [§ 2581] — INR-01-30-14
  • Procedure: redemption tendered to the Office of the Lieutenant Governor; redemption is recorded against the certificate of purchase. → needs_verification (exact recording mechanics, § 2582–2583 text).
  • Extinguishment: if redemption is not exercised within one year, the recorded certificate of purchase “shall vest the title to said property absolutely in the [purchaser/Government] free from all mortgages, liens or other encumbrances.” [§ 2547 / § 2552] — INR-01-30-14
  • Special tolling (minors, incompetents, SCRA, bankruptcy): → needs_verification (no V.I.-specific tolling provision located).

3. Surplus / Excess Proceeds → see surplus-funds, third-party-recovery-rules

  • Belongs to: the former owner. “Any remaining funds after the delinquent taxes, sewer system user fees, penalties and costs are deducted, are to be paid to the taxpayer.” 33 V.I.C. § 2547. — INR-01-30-14
  • Claim waterfall: (1) delinquent real property taxes; (2) public sewer system user fees; (3) penalties; (4) costs of sale (advertising prorated + $5 notice fee); (5) remainder to the former owner/taxpayer. [§§ 2546, 2547] — INR-01-30-14. (Mortgagee/junior-lien priority within the surplus → needs_verification.)
  • Filing venue: Office of the Lieutenant Governor (Tax Collector). → needs_verification (whether a formal claim form/process exists vs. automatic disbursement).
  • Claim deadline: → needs_verification (no statutory surplus-claim deadline located; § 2547 frames surplus as payable to the taxpayer rather than as a claims process). Note: a related but distinct 90-day limit governs suits to contest the certificate of purchase (below), not surplus claims.
  • Escheat: → needs_verification (no escheat trigger for unclaimed tax-sale surplus located).
  • Documentation required: → needs_verification.
  • Third-party recovery (recovery-agent regulation):
    • fee_cap_pct: null — no V.I. statute capping surplus-recovery-agent fees located. → needs_verification.
    • licensing_required: unknown → needs_verification.
    • assignment_of_claim_allowed: unknown → needs_verification. (§ 2584 broadly allows redemption by an owner’s “assigns,” but that governs redemption, not surplus-claim assignment.)
    • cooling_off_period: unknown → needs_verification.
    • contract_disclosure_rules: unknown → needs_verification.
    • prohibited_practices: bid manipulation / restraining bidders is criminal/voidable under § 2549, but that targets auction conduct, not recovery agents. — INR-01-30-14
    • citation: none located.
  • Notice to former owner required? Yes — pre-sale Notice of Attachment with strict service rules (personal service, then two witnessing neighbors, then mailing + 4 weeks’ publication + posting). 33 V.I.C. § 2541. — INR-01-30-14

4. Mortgage Foreclosure

  • Process: judicial. USVI follows judicial mortgage foreclosure through the courts, with sales conducted by the Office of the Virgin Islands Marshal (Marshal’s Sales). → needs_verification (statutory home; Title 28 real-property provisions).
  • Timeline (notice of default / notice of sale / sale / confirmation): → needs_verification.
  • Reinstatement right: → needs_verification.
  • Redemption after sale: → needs_verification (whether a post-sale statutory redemption applies to mortgage, as distinct from tax, foreclosures).
  • Deficiency judgment / fair-value offset / one-action rule: → needs_verification.
  • Surplus distribution (mortgage): → needs_verification.
  • Sale officer: V.I. Marshal. Source (Marshal’s Sales): https://www.vicourts.org/administration/office_of_the_virgin_islands_marshal/marshal_s_sales

5. Sale Procedure Playbooks

  • Lieutenant Governor (tax) sale — ordered steps → see treasurer-sale:
    1. Delinquency arises after the bill due date (bills issued ~June; due June 30, extendable to Aug. 30 penalty-free). — LegalClarity summary (secondary) https://legalclarity.org/how-the-us-virgin-islands-property-tax-system-works/
    2. Lieutenant Governor prepares a Notice of Attachment stating the delinquent taxes/fees/interest, that the property will be sold if unpaid, the auction date, and the redemption-expiration date. [§ 2541] — INR-01-30-14
    3. Service: personal service on taxpayer or adult family member; if not found, leave with two witnessing neighbors; if none, mail to last known address and publish weekly for 4 consecutive weeks and post at the nearest post office or Superior Court bulletin board. [§ 2541] — INR-01-30-14
    4. A Certificate of Attachment is recorded in the real property register (describing property, owner, assessed value, amounts due, boundaries). [§ 2541] — INR-01-30-14
    5. Advertise the sale at least once in a newspaper of general circulation in each district; add advertising cost + $5 notice fee to sale costs. [§ 2546] — INR-01-30-14
    6. Auction held ≥3 weeks after advertisement; highest bidder ≥ amount owed; 10% deposit on sale day; balance within 10 days; deposit forfeited on default. [§ 2547] — INR-01-30-14
    7. Certificate of purchase issued; recorded with Recorder of Deeds; one-year redemption runs. [§§ 2547, 2581–2584] — INR-01-30-14
    8. If unredeemed, title vests absolutely in the purchaser/Government, free of liens. [§ 2547 / § 2552] — INR-01-30-14
  • Marshal (mortgage) sale — ordered steps → see sheriff-sale: → needs_verification.
  • Notice requirements: publication 4 weeks (attachment notice) + sale advertisement in each district’s newspaper; mailing + posting. Consequence of defect: void (see § 2549; case law below). [§§ 2541, 2546] — INR-01-30-14
  • Upset bid / confirmation: none for tax sales (no judicial confirmation; the one-year redemption is the protective window). → needs_verification (any confirmation step).
  • Payment terms: 10% down day-of; balance within 10 days. [§ 2547] — INR-01-30-14
  • Deed issued: certificate of purchase, ripening to absolute (lien-free) title after one year if unredeemed; recorded at Recorder of Deeds. [§§ 2547, 2552] — INR-01-30-14

6. Due Process & Notice → see due-process-notice

  • Standard: USVI applies federal Fourteenth Amendment due process. The V.I. Attorney General’s 2014 Advisory Opinion states that violating the statutory tax-sale requirements “raises significant Fourteenth Amendment due process concerns,” and that “[t]he tax sales laws must be strictly construed in favor of the owner of the land.” — INR-01-30-14
  • Required attempts: personal service → two-neighbor witnessed service → mail + 4-week publication + posting; all attempts must be documented. [§ 2541] — INR-01-30-14
  • Consequence of defective notice: void. Under § 2549, sales made in violation (selling exempt/paid property, defrauding the owner, restraining bidders, or knowingly issuing a wrongful certificate) “shall be void,” and the responsible official “shall pay the injured party all damages sustained.” Courts have set aside V.I. tax sales for failure to follow/document § 2541 steps. — INR-01-30-14
  • Statute of limitations to contest: suits to contest the validity of a certificate of purchase must be filed within 90 days of its recordation in the Office of the Recorder of Deeds. [33 V.I.C. § 2546-related notice requirement] — INR-01-30-14 / Justia §2552 (corroborating).
  • Leading cases: rivera-v-government-of-the-virgin-islands, benoit-v-panthaky, shree-ram-naya-sabha-v-hendricks, tyler-v-hennepin-county.

7. Title & Marketability

  • Deed warranty level: none — the certificate of purchase / resulting title is a tax title (no warranty). After one year unredeemed it vests “free from all mortgages, liens or other encumbrances.” [§ 2547 / § 2552] — INR-01-30-14
  • Marketable immediately? No — title is subject to the one-year redemption and to the 90-day window to contest the certificate; practical marketability follows expiry of both. — INR-01-30-14
  • Quiet title required? Commonly advisable given documented notice-defect litigation; → needs_verification (whether routinely required).
  • SOL to challenge deed: 90 days from recordation of the certificate of purchase (to contest validity). — INR-01-30-14
  • Title insurance availability: → needs_verification.
  • Common defects: defective/undocumented Notice of Attachment service; sale of ineligible parcels (roads, probate, unusable land — see IG report); bid-manipulation / award to non-highest bidder (void under § 2549). — INR-01-30-14

8. Case Law (real, verified)

CaseYearTopicHolding (plain English)Source
rivera-v-government-of-the-virgin-islands — Rivera v. Government of the Virgin Islands, 13 V.I. 42 (D.V.I. 1976)1976sale_procedure, due_processAction by owners to set aside a tax sale of real property; owners alleged the Government failed to comply with many statutory tax-sale requirements. (Verified: case, citation, court, and that it is a suit to set aside a tax sale for statutory non-compliance. Exact disposition/reasoning → needs_verification.)https://www.courtlistener.com/opinion/8211008/rivera-v-government-of-the-virgin-islands/
benoit-v-panthaky — Benoit v. Panthaky, 20 V.I. 28 (D.V.I. 1983)1983sale_procedure, due_processAction to set aside a tax foreclosure and sale of unimproved St. Croix real property and for declaratory judgment. (Verified: case, citation, court, posture. Exact holding → needs_verification.)https://www.courtlistener.com/opinion/8676448/kelley-v-government-of-virgin-islands/
shree-ram-naya-sabha-v-hendricks — Shree Ram Naya Sabha, Inc. v. Hendricks, 19 V.I. 216 (D.V.I. 1982)1982redemption, sale_procedureOwners who failed to pay 1975–76 real property taxes sued after the Government sold the lot for delinquent taxes to a purchaser who resold it; suit challenged the tax sale/redemption. (Verified: case, citation, court, subject. Exact holding → needs_verification.)https://www.courtlistener.com/api/rest/v4/search/?q=Shree+Ram+Naya+Sabha+Hendricks
limar-enterprises-v-government-of-the-virgin-islands — Limar Enterprises, Inc. v. Gov’t of the V.I., 34 V.I. 50 (D.V.I. 1996)1996redemptionClass-style motion to enjoin/“freeze” the one-year redemption period following a real property delinquent tax sale and to maintain title pending suit. (Verified: case, citation, court, and that it concerns the post-sale redemption period. Exact ruling → needs_verification.)https://www.courtlistener.com/opinion/8675693/limar-enterprises-inc-v-govt-of-the-virgin-islands/
tyler-v-hennepin-county — Tyler v. Hennepin County, 598 U.S. 631 (2023)2023surplus, due_processRetaining surplus equity beyond the tax debt is an unconstitutional taking; surplus must be returned to the former owner. USVI § 2547 already directs surplus to the taxpayer (compliant).https://www.supremecourt.gov/opinions/22pdf/22-166_8n59.pdf

Surplus-specific V.I. case law: no V.I. decision squarely construing the § 2547 surplus-to-taxpayer mandate was located. The surplus topic is anchored by the statute (§ 2547) plus tyler-v-hennepin-county; a dedicated V.I. surplus case is listed under needs_verification.

9. Edge Cases (state-specific notes)

  • bankruptcy-automatic-stay — federal Bankruptcy Code stay applies in the USVI (a U.S. territory under federal bankruptcy jurisdiction); a pre-petition redemption period may be extended under 11 U.S.C. § 108(b). → needs_verification (V.I.-specific application).
  • federal-tax-lien-redemption — IRS 120-day right of redemption (26 U.S.C. § 7425) applies to federally noticed liens on V.I. property. Note the V.I. mirror-code income tax is administered by the V.I. Bureau of Internal Revenue (separate from real property tax). → needs_verification.
  • heirs-property — undivided heirs’ interests are common in the USVI; § 2584 expressly permits redemption by “heirs or assigns or any one having any right or interest” in the property. — INR-01-30-14
  • Government bid-in (no surplus): under § 2552 the Lieutenant Governor bids the property in for the Government at the amount owed when no higher bid is offered; redemption then runs under § 2584. — INR-01-30-14
  • Void vs. voidable / bid manipulation: § 2549 renders sales tainted by fraud, restraint of bidders, or sale of exempt/paid property void; the 2014 IG report documented a bid-manipulation scheme and the AG opined awards to a second-highest bidder are unlawful. — INR-01-30-14
  • No communal-land bar: unlike American Samoa, USVI land is held in fee simple and is subject to fee-simple tax foreclosure. — INR-01-30-14 (auctions of fee parcels).
  • hoa-super-priority, manufactured-homes, scra-protections, life-estates — → needs_verification (no V.I.-specific rule located).

10. Operations

11. Meta

Graph View

Backlinks