Bulletin: VA2021004

Dear Associates:

House Bill 2099 substantially revised Virginia Code Section 8.01-251 regarding the time period for enforcement of judgments rendered or docketed in the Circuit Court. Important changes to note:

1. As of January 1, 2022, the general enforcement period for judgments entered on or after July 1, 2021 is reduced to 10 years from the date of judgment (10 years from docketing if a foreign judgment). Note this change is not retroactive and the enforcement period for judgments entered prior to July 1, 2021 remains 20 years.
2. As of January 1, 2022, judgments will not be enforceable 5 years after conveyance by the judgment debtor to a purchaser for value regardless of whether the judgment was entered before or after July 1, 2021. Because this 5- year period will be applied retroactively in lieu of the prior 10-year “out of title” rule, we are hopeful this change will help eliminate a substantial share of old outstanding judgments.
3. As of July 1, 2021, the enforcement period for judgments may be extended up to two additional 10-year terms by recordation of a certificate using the format set forth in 8.01- 251 (G).

Please note that notwithstanding the above statutory changes, more extensive enforcement periods may apply as follows:

1. Federal Judgments, including state court judgments in favor of the U.S.A. or its agencies, can be enforced for 20 years from the date of judgment unless renewed (and may prime purchase money deeds of trust).
2. Judgments docketed by victims referencing an order of restitution for criminal acts have no limitation on enforcement.
3. Judgments for nonpayment of child support will continue to be enforceable for 20 years from the date of judgment or from docketing if a foreign judgment.
4. Judgments in favor of the Commonwealth of Virginia or localities for criminal penalties can be enforced for 60 years from the date of the offense if entered in Circuit Court and 30 years if entered in General District Court.

Stewart Title is not currently modifying existing requirements for title examinations.

We have attached a revised Virginia Encumbrances "Cheat Sheet" reflecting these statutory changes. Please note that, except as expressly stated in this Bulletin, the shorter enforcement periods are not retroactive and not fully effective until 1/1/2022.

House Bill 2099 also amended Virginia Code Section 8.01-339, the “settlement agent release statute”, effective 1/1/2022, giving settlement agents the authority to release a judgment which has been paid off by that settlement agent. As with deeds of trust, the code section requires the agent to provide specified 90-day notices and allows the agent to execute and record a judgment release if there is no objection during the 90- day notice period. Note that these settlement agent release procedures do not apply to any lien in favor of a local, state, or federal government or their political subdivisions.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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