Code of Virginia - Title 55 Property And Conveyances - Section 55-57.2 Effect of option; recording

§ 55-57.2. Effect of option; recording

A. Any option to purchase real estate, and any memorandum, renewal or extension thereof, shall be void as to (i) all purchasers for valuable consideration without notice not parties thereto and (ii) lien creditors, until such instrument is recorded in the county or city where the property embraced in the option, memorandum, renewal or extension is located.

B. Notwithstanding any rule of law or equity denominated "fettering," "clogging the equity of redemption" or "claiming a collateral advantage" or any similar rule:

1. A party secured by a mortgage or deed of trust, without adversely affecting his security interest, may acquire from a borrower any direct or indirect present or future ownership interest in the collateral encumbered thereby, including rights to any income, proceeds or increase in value derived from such collateral; and

2. An option to acquire an interest in real estate granted to a party secured by a mortgage or deed of trust, other than an option granted to such party in connection with a mortgage loan as defined in § 6.1-409, is effective according to its terms and takes priority as provided in subsection A of this section if the right to exercise the option is not dependent upon the occurrence of a default under the mortgage or deed of trust.

(1989, c. 596.)

Sections:  Previous  55-52  55-53  55-54  55-55  55-56  55-57  55-57.1  55-57.2  55-58  55-58.1  55-58.2  55-58.3  55-59  55-59.1  55-59.1:1  Next

Last modified: April 16, 2009