{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/55.1-2303.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/55.1-2303.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/55.1-2303.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/55.1-2303.html"}],"law_id":75889,"edition_id":1,"section_id":75889,"structure_id":14090,"section_number":"55.1-2303","catch_line":"Blanket encumbrances","history":"1978, c. 510, \u00a7 55-342; 1980, c. 546; 1996, c. 372; 2019, c. 712.","full_text":"A\n\nIt is unlawful for any developer or agent to sell or lease a lot in a subdivision that is subject to a blanket encumbrance unless the blanket encumbrance or effective supplemental agreement contains a release provision permitting legal title to individual lots or other interest contracted for to be obtained free and clear of the blanket encumbrance. Nothing in this section shall be construed to limit either the conditions upon which such release may be premise or the modification or amendment of such release provision as to (i) any purchaser other than a purchaser under an installment sales contract or (ii) any purchaser under an installment sales contract that is executed subsequent to the recordation of the amendment or modification.B\n\nUnless blanket encumbrance release provisions provide that the lien of the blanket encumbrance is subordinate to the rights of persons purchasing from the developer or agent and that those purchasers have the unconditional right to obtain legal title or other interest contracted for free and clear of the blanket encumbrance upon compliance with the terms and conditions of the purchase or lease, it is unlawful for a developer or agent to sell or lease lots except in compliance with one of the following conditions:1\n\nAny earnest money deposit or advance or other payment made by the purchaser on account of the purchase of a lot is placed in an escrow account that is a trust account maintained in a federally insured depository located in the Commonwealth and that fully protects the interest of the purchaser until:\n\t\t\t\ta. Fee title or other interest contracted for is conveyed to the purchaser free and clear of the blanket encumbrance;\n\t\t\t\tb. Either the developer or purchaser defaults under the contract and a final determination as to the disbursal of sums paid is made by a court of competent jurisdiction; or\n\t\t\t\tc. The developer voluntarily orders the return of the money to the purchaser; or2\n\nTitle to the subdivision is held in trust under a trust agreement until a proper release is obtained and legal title or other interest contracted for is conveyed to the purchaser.","order_by":null,"text":{"0":{"id":272473,"text":"It is unlawful for any developer or agent to sell or lease a lot in a subdivision that is subject to a blanket encumbrance unless the blanket encumbrance or effective supplemental agreement contains a release provision permitting legal title to individual lots or other interest contracted for to be obtained free and clear of the blanket encumbrance. Nothing in this section shall be construed to limit either the conditions upon which such release may be premise or the modification or amendment of such release provision as to (i) any purchaser other than a purchaser under an installment sales contract or (ii) any purchaser under an installment sales contract that is executed subsequent to the recordation of the amendment or modification.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":272474,"text":"Unless blanket encumbrance release provisions provide that the lien of the blanket encumbrance is subordinate to the rights of persons purchasing from the developer or agent and that those purchasers have the unconditional right to obtain legal title or other interest contracted for free and clear of the blanket encumbrance upon compliance with the terms and conditions of the purchase or lease, it is unlawful for a developer or agent to sell or lease lots except in compliance with one of the following conditions:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":272475,"text":"Any earnest money deposit or advance or other payment made by the purchaser on account of the purchase of a lot is placed in an escrow account that is a trust account maintained in a federally insured depository located in the Commonwealth and that fully protects the interest of the purchaser until:\n\t\t\t\ta. Fee title or other interest contracted for is conveyed to the purchaser free and clear of the blanket encumbrance;\n\t\t\t\tb. Either the developer or purchaser defaults under the contract and a final determination as to the disbursal of sums paid is made by a court of competent jurisdiction; or\n\t\t\t\tc. The developer voluntarily orders the return of the money to the purchaser; or","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":272476,"text":"Title to the subdivision is held in trust under a trust agreement until a proper release is obtained and legal title or other interest contracted for is conveyed to the purchaser.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1"}},"ancestry":[{"id":14090,"edition_id":1,"name":"Subdivided Land Sales Act","identifier":"23","label":"chapter","depth":3,"order_by":1,"parent_id":12914,"metadata":{},"date_created":"2026-06-26 03:46:51","date_modified":"2026-06-26 03:46:51","permalink":{"id":247695,"object_type":"structure","relational_id":14090,"identifier":"23","token":"55.1\/IV\/23","url":"\/55.1\/IV\/23\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12914,"edition_id":1,"name":"Common Interest Communities","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":12707,"metadata":{},"date_created":"2026-06-26 03:44:01","date_modified":"2026-06-26 03:44:01","permalink":{"id":246473,"object_type":"structure","relational_id":12914,"identifier":"IV","token":"55.1\/IV","url":"\/55.1\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12707,"edition_id":1,"name":"Property and Conveyances","identifier":"55.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":244769,"object_type":"structure","relational_id":12707,"identifier":"55.1","token":"55.1","url":"\/55.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":71715,"structure_id":14090,"section_number":"55.1-2300","catch_line":"Definitions","url":"\/55.1-2300\/","token":"55.1\/IV\/23\/55.1-2300","metadata":false},{"id":56010,"structure_id":14090,"section_number":"55.1-2301","catch_line":"Exemptions","url":"\/55.1-2301\/","token":"55.1\/IV\/23\/55.1-2301","metadata":false},{"id":64970,"structure_id":14090,"section_number":"55.1-2302","catch_line":"Transfer of ownership","url":"\/55.1-2302\/","token":"55.1\/IV\/23\/55.1-2302","metadata":false},{"id":75889,"structure_id":14090,"section_number":"55.1-2303","catch_line":"Blanket encumbrances","url":"\/55.1-2303\/","token":"55.1\/IV\/23\/55.1-2303","metadata":false},{"id":80560,"structure_id":14090,"section_number":"55.1-2304","catch_line":"Restraints on alienation","url":"\/55.1-2304\/","token":"55.1\/IV\/23\/55.1-2304","metadata":false},{"id":71094,"structure_id":14090,"section_number":"55.1-2305","catch_line":"Management, regulation, and control of subdivisions with common facilities or property owners' associations; assessments; liens","url":"\/55.1-2305\/","token":"55.1\/IV\/23\/55.1-2305","metadata":false},{"id":55216,"structure_id":14090,"section_number":"55.1-2306","catch_line":"Penalties","url":"\/55.1-2306\/","token":"55.1\/IV\/23\/55.1-2306","metadata":false}],"previous_section":{"id":64970,"structure_id":14090,"section_number":"55.1-2302","catch_line":"Transfer of ownership","url":"\/55.1-2302\/","token":"55.1\/IV\/23\/55.1-2302","metadata":false},"next_section":{"id":80560,"structure_id":14090,"section_number":"55.1-2304","catch_line":"Restraints on alienation","url":"\/55.1-2304\/","token":"55.1\/IV\/23\/55.1-2304","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/55.1-2303\/","history_text":"

This law was first created in 1978. The record of its establishment is cataloged in chapter 510 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1978 \u201cActs\u201d aren\u2019t available online. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1980, chapter 546; in 1996, chapter 372<\/a>; in 2019, chapter 712<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":247709,"object_type":"law","relational_id":75889,"identifier":"55.1-2303","token":"55.1\/IV\/23\/55.1-2303","url":"\/55.1-2303\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/55.1-2303\/","token":"55.1\/IV\/23\/55.1-2303","dublin_core":{"Title":"Blanket encumbrances","Type":"Text","Format":"text\/html","Identifier":"\u00a7 55.1-2303","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> It is unlawful for any developer<\/span> or agent<\/span> to sell or lease a lot<\/span> in a subdivision that is subject to a blanket encumbrance<\/span> unless the blanket encumbrance<\/span> or effective supplemental agreement contains a release provision permitting legal title to individual lots<\/span> or other interest contracted for to be obtained free and clear of the blanket encumbrance<\/span>. Nothing in this section shall be construed to limit either the conditions upon which such release may be premise or the modification or amendment of such release provision as to (i) any purchaser<\/span> other than a purchaser<\/span> under an installment sales<\/span> contract<\/span> or (ii) any purchaser<\/span> under an installment sales<\/span> contract<\/span> that is executed subsequent to the recordation of the amendment or modification. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Unless blanket encumbrance<\/span> release provisions provide that the lien<\/span> of the blanket encumbrance<\/span> is subordinate to the rights of persons<\/span> purchasing from the developer<\/span> or agent<\/span> and that those purchasers<\/span> have the unconditional right to obtain legal title or other interest contracted for free and clear of the blanket encumbrance<\/span> upon compliance with the terms and conditions of the purchase or lease, it is unlawful for a developer<\/span> or agent<\/span> to sell or lease lots<\/span> except in compliance with one of the following conditions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Any earnest money deposit or advance or other payment made by the purchaser<\/span> on account of the purchase of a lot<\/span> is placed in an escrow account that is a trust account maintained in a federally insured depository located in the Commonwealth and that fully protects the interest of the purchaser<\/span> until:\n\t\t\t\ta. Fee title or other interest contracted for is conveyed to the purchaser<\/span> free and clear of the blanket encumbrance<\/span>;\n\t\t\t\tb. Either the developer<\/span> or purchaser<\/span> defaults<\/span> under the contract<\/span> and a final determination as to the disbursal of sums paid is made by a court<\/span> of competent jurisdiction<\/span>; or\n\t\t\t\tc. The developer<\/span> voluntarily orders<\/span> the return of the money to the purchaser<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Title to the subdivision is held in trust under a trust agreement until a proper release is obtained and legal title or other interest contracted for is conveyed to the purchaser<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nBLANKET ENCUMBRANCES (\u00a7 55.1-2303)\n\nA. It is unlawful for any developer or agent to sell or lease a lot in a\nsubdivision that is subject to a blanket encumbrance unless the blanket\nencumbrance or effective supplemental agreement contains a release provision\npermitting legal title to individual lots or other interest contracted for to be\nobtained free and clear of the blanket encumbrance. Nothing in this section\nshall be construed to limit either the conditions upon which such release may be\npremise or the modification or amendment of such release provision as to (i) any\npurchaser other than a purchaser under an installment sales contract or (ii) any\npurchaser under an installment sales contract that is executed subsequent to the\nrecordation of the amendment or modification.\n\nB. Unless blanket encumbrance release provisions provide that the lien of the\nblanket encumbrance is subordinate to the rights of persons purchasing from the\ndeveloper or agent and that those purchasers have the unconditional right to\nobtain legal title or other interest contracted for free and clear of the\nblanket encumbrance upon compliance with the terms and conditions of the\npurchase or lease, it is unlawful for a developer or agent to sell or lease lots\nexcept in compliance with one of the following conditions:\n\n 1. Any earnest money deposit or advance or other payment made by the purchaser\n on account of the purchase of a lot is placed in an escrow account that is a\n trust account maintained in a federally insured depository located in the\n Commonwealth and that fully protects the interest of the purchaser until:\n \t\t\t\ta. Fee title or other interest contracted for is conveyed to the purchaser\n free and clear of the blanket encumbrance;\n \t\t\t\tb. Either the developer or purchaser defaults under the contract and a\n final determination as to the disbursal of sums paid is made by a court of\n competent jurisdiction; or\n \t\t\t\tc. The developer voluntarily orders the return of the money to the\n purchaser; or\n\n 2. Title to the subdivision is held in trust under a trust agreement until a\n proper release is obtained and legal title or other interest contracted for is\n conveyed to the purchaser.\n\nHISTORY: 1978, c. 510, \u00a7 55-342; 1980, c. 546; 1996, c. 372; 2019, c. 712.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}