Beeren & Barry Investments, LLC v. Equity Trustees, LLC, et. al., 73 Va. Cir. 375

Summary

The holder had conveyed the property via the deed to certain mortgagors. At that time, the holder obtained a purchase money promissory note, which included the option to purchase and both the note and option were properly recorded. The mortgagors had refinanced the property and the holder received satisfaction of its promissory note, but expressly retained the option. The mortgagors defaulted and plaintiff purchased the property. Plaintiff asserted that the option was personal to the grantor, the mortgagors, and, therefore, did not run with the land and was not enforceable against anyone but the grantor. The holder argued that the option was a restrictive covenant, which was binding and enforceable against any successors in interest to the grantor. The court held that all of the elements of a restrictive covenant were present and that since the option was properly drafted and recorded, plaintiff received constructive notice of the option when it acquired the property. However, because ...