                                 CODE OF VIRGINIA

CONTRACTS, ETC., VOID AS TO CREDITORS AND PURCHASERS UNTIL RECORDED; PRIORITY OF
CREDIT LINE DEED OF TRUST (§ 55.1-407)

A. 1. Every (i) contract in writing; (ii) deed conveying any estate or term;
(iii) deed of gift, or deed of trust, or mortgage conveying real estate or
personal property; and (iv) bill of sale, or contract for the sale of personal
property, when the possession is allowed to remain with the grantor, shall be
void as to all purchasers for valuable consideration without notice not parties
thereto and lien creditors, until and except from the time it is recorded in the
county or city in which the property subject to such contract, deed, or bill of
sale is located. The fact that any such instrument is in the form of or contains
the terms of a quit-claim or release shall not prevent the grantee from being a
purchaser for valuable consideration without notice, nor be of itself notice to
such grantee of any unrecorded conveyance of or encumbrance upon such real
estate or personal property. The mere possession of real estate shall not, of
itself, be notice to purchasers for value of any interest or estate therein of
the person in possession. As to personal property whose possession is retained
by a merchant-seller, the provisions of subsection (2) of § 8.2-402 of the
Uniform Commercial Code shall control. This section shall not apply to any
security interest in personal property under the Uniform Commercial Code. Any
bill of sale or contract for the sale of personal property when possession is
allowed to remain with the grantor shall be deemed to be duly recorded when it
is filed in the same manner as Uniform Commercial Code financing statements are
filed under the criteria and in the places established by § 8.9A-501 as if the
grantor were a debtor and the grantee a secured party. A recordation under the
provisions of this section shall, when any real estate subject to the lien of
any such contract has been annexed to or merged with an adjoining city
subsequent to such docketing, be deemed to have been recorded in the proper
clerk&#8217;s office of such city.

   2. The clerk of each court in which any such instrument is by law required to
   be recorded shall keep a daily index of all such instruments admitted to
   record in his office, and, immediately upon recording such instrument, the
   clerk shall index the same either in the daily index or the appropriate
   general index of his office. All instruments indexed in the daily index shall
   be indexed by the clerk in the appropriate general index within 90 days after
   recording. During the period permitted for transfer from the daily index to
   the general index, indexing in the daily index shall be a sufficient
   compliance with the requirements of this section as to indexing.

   3. a. In any circuit court in which any such instrument required to be
   recorded is not recorded on the same day as delivered, the clerk shall install
   a time stamp machine. The time stamp machine shall affix the current date and
   time of each delivery of any instrument delivered to the clerk for recording
   that is not immediately recorded and entered into the general or daily index.
   				b. In the event that a time stamp machine has not been installed or is not
   functioning, the clerk shall designate an employee to affix the current date
   and time of each delivery of any instrument delivered to the clerk for
   recording.
   				c. In any circuit court in which instruments required to be recorded are
   not recorded on the same day as delivered, for purposes of subdivision 1, the
   term &#8220;from the time it is recorded&#8221; shall be presumed to be the
   date and time affixed upon the instrument by the time stamp machine or affixed
   by the clerk in accordance with subdivision b unless the clerk determines that
   the applicable requirements for recordation of the instrument have not been
   satisfied.
   				d. The provisions of subdivision 3 shall not apply to certificates of
   satisfaction or partial satisfaction or assignments of deeds of trust
   delivered to the clerk&#8217;s office other than by hand.

B. A credit line deed of trust, recorded pursuant to &#xA7; 55.1-318, is valid
and has priority over any (i) contract in writing, deed, conveyance, or other
instrument conveying any such estate or term subsequently recorded or (ii)
judgment subsequently docketed as to all advances made under such credit line
deed of trust from the date of recordation of such credit line deed of trust,
whether or not the particular advance or extension of credit has been made or
unconditionally committed at the time of delivery or recordation of such
contract in writing, deed, or other instrument or the docketing of such
judgment. Any judgment creditor shall have the right to give the notice
contemplated by &#xA7; 55.1-318 and, from the day following receipt of such
notice, the judgment as docketed shall have priority over all subsequent
advances made pursuant to the credit line deed of trust except those that have
been unconditionally and irrevocably committed prior to such date.
Mechanics&#8217; liens created under Title 43 shall continue to have the same
priority as created by that title. Purchase money security interests in goods
and fixtures shall have the same priority as provided in Part 3 of Title 8.9A
(&#xA7; 8.9A-317 et seq.).

HISTORY: Code 1919, § 5194; 1922, p. 474; 1944, p. 356; Code 1950, § 55-96;
1964, cc. 219, 309, 314; 1966, c. 400; 1974, c. 522; 1982, c. 230; 1984, c. 19;
1988, c. 51; 2003, c. 776; 2014, c. 267; 2019, c. 712.