Legal Question in Real Estate Law in Virginia

Re: Contract for Deed

The so-called "Contract for Deed" is probably the worst method there is to attempt to own property. Notice my reference to attempt, because in many cases that's all that comes of these kinds of transactions, i.e., the would be buyer ends up with nothing other than what are in effect payments of rent for a place to live and at some point the seller, the real owner of the property(or the seller's heirs/assigns) decides to dispose of the property in some other manner other than what's called for in the Contract for Deed.

In a Contract for Deed transaction, title remains

with the seller(or the seller's heirs/assigns) until the very last payment due and owing under the contract, including any arrearages, unpaid penalties, interest, etc., is finally paid. The buyer's long hoped for dream of actually owning the property could be some thirty years down the line and subject to many adverse events that could cause the dream to fade into nothingness. In the meantime the would be buyer owns nothing and there you have the answer to your last question which is a resounding: NO!, i.e., you have no legal authority whatsoever to sell such a property or to obtain a loan against it simply because you don't legally own even one square inch of it.

Caveat Emptor, buyer beware, in spades, when it comes to this kind of deal. Avoid it at all costs.