Virginia · owner financing
Virginia owner financing, explained.
A plain-English guide to owner financing (also called seller financing) in Virginia — statute, recording, default remedies, interest caps, and where deals actually happen.
Va. Code § 55.1-300 et seq. (recording); common law; no dedicated CFD statute
Recording with the Circuit Court Clerk permitted under Va. Code § 55.1-407; not statutorily mandated but unrecorded contracts subordinate to BFPs without notice. Recordation tax applies.
Hybrid. Virginia courts have applied the equitable mortgage doctrine to require foreclosure where the CFD is in substance a security device, particularly where buyer has paid substantial portion. Forfeiture per contract terms enforceable with equitable scrutiny; cure period typically required.
Is owner financing legal in Virginia?
Virginia recognizes 'installment land contracts' / 'contracts for deed' under common law as a form of seller financing.
How do you record a owner financing agreement in Virginia?
Recording with the Circuit Court Clerk permitted under Va. Code § 55.1-407; not statutorily mandated but unrecorded contracts subordinate to BFPs without notice. Recordation tax applies.
What happens if the buyer defaults?
Hybrid. Virginia courts have applied the equitable mortgage doctrine to require foreclosure where the CFD is in substance a security device, particularly where buyer has paid substantial portion. Forfeiture per contract terms enforceable with equitable scrutiny; cure period typically required.
What is the maximum interest rate?
Virginia eliminated its general usury cap for most loans; consumer loans subject to 12% default rate under Va. Code § 6.2-303; various exemptions for written contracts and regulated lenders.
What disclosures are required?
Virginia Residential Property Disclosure Act (Va. Code § 55.1-700 et seq.) — primarily a 'buyer beware' statute requiring disclosure form acknowledging buyer's duty to investigate; lead-based paint (federal).
Who's protected — buyer vs. seller
Buyer protections
Equitable mortgage doctrine where applicable; redemption rights upon foreclosure; courts disfavor forfeiture of substantial equity.
Seller protections
Forfeiture enforceable per contract terms absent equitable defenses; unlawful detainer action for possession; retention of payments as liquidated damages.
Where in the state do these deals happen?
Rural Southwest Virginia and Southside land; recreational/mountain property; occasional residential in Hampton Roads and Richmond.
Virginia cities
Per-city market notes for owner financing buyers and sellers.
Notable case law
Sale v. Swann, 138 Va. 198 (1924); Lake Holiday Country Club v. Teets, 244 Va. 134 (1992).
Looking at a Virginia deal?
Send the parcel and the terms — we'll walk through whether owner financing fits, how to record it, and what the cure period looks like if things go sideways.
Talk to WyattEducational content only. Statute citations are public-record research, not legal advice. Virginia contracts and remedies are fact-specific — consult a licensed Virginia real-estate attorney before signing anything.