Charlottesville, VA asked in Real Estate Law for Virginia

Q: My question is about real estate investing in Virginia. Specifically loaning money for the purpose of flipping houses.

If interest payments and repayments of loans, as stated on promissory note and deed of trust, are to be made jointly, for example all payments are to be made to Mr and Mrs at their home address, can the payments for interest and repayments of loans, legally be made to one of the parties ( excluding the other on the checks) and hand delivered to the one party instead of mailed as the contract states?

Also how long does the business have to hold on to records of loans and deeds? The transactions and investors reside in Henrico county, Va.

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1 Lawyer Answer

Thomas H. Roberts Esq

Answered
  • Richmond, VA
  • Licensed in Virginia

A: 1st - you should make the check payable to both. Assuming you failed to do so, what is the consequence? You would have to contend that making the check payable to only one was still compliant because the one was acting as an agent for the other as well. 2nd - hand delivery instead of mailing is not going to be considered a "material breach" as the party obviously received the money. The last question is not at all clear. It is advisable that a business or person retain records of loans made or paid for as long as the statute of limitations is operative, for any claim that the loan was not paid or any issue arrises over the transaction. Generally speaking the deed should be recorded at the court house where barring a civil war that burns the court house to the ground with its records, a EMP or similar disaster, the record becomes a permanent record available to the public.

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