Virginia · Rent-to-ownVirginia rent-to-own and installment land contracts: cure period, option payment and recording

Virginia's Residential Executory Real Estate Contracts Act covers an installment land contract, lease option contract or rent-to-own contract by which a purchaser acquires a right or interest in real property – other than a right of first refusal – and occupies or intends to occupy it as a primary residence (Va. Code §55.1-3000). It doesn't apply when the vendor is a natural person, estate or entity owning no more than two single-family dwellings in Virginia (unless affiliated with an entity that owns another), a licensed real estate licensee, or a bank, savings institution, credit union or licensed mortgage lender (§55.1-3001). Every covered contract is subject to the Virginia Residential Landlord and Tenant Act. The purchaser may exercise the purchase option at any time before it expires, with no fee or penalty for exercising early. If the default is only a failure to pay rent or other money, the vendor may terminate the lease and recover possession only if the amount remains unpaid more than 30 days after a notice stating the nonpayment, the amount and the intent to terminate. The vendor may not forfeit the option payment, though it may apply it to amounts the purchaser owes under the contract or as a court directs in an interpleader. If the vendor defaults, the purchaser may sue for an injunction, actual damages, specific performance, rescission or other equitable relief, and the prevailing party may recover attorney fees. The contract may be recorded in the circuit court clerk's land records, and these protections can't be waived (§55.1-3002).