55-66.10 - Document of rescission; effect; liability for wrongful recording. - Virginia Statutes

§ 55-66.10. Document of rescission; effect; liability for wrongful recording.

A. In this section, "document of rescission" means a document stating thatan identified satisfaction, certificate of satisfaction, or affidavit ofsatisfaction of a security instrument was recorded erroneously orfraudulently, the secured obligation remains unsatisfied, and the securityinstrument remains in force.

B. If a person records a satisfaction, certificate of satisfaction, oraffidavit of satisfaction of a security instrument in error or by fraud, theperson may execute and record a document of rescission. Upon recording, thedocument rescinds an erroneously recorded satisfaction, certificate, oraffidavit.

C. A recorded document of rescission has no effect on the rights of a personwho:

1. Acquired an interest in the real property described in a securityinstrument after the recording of the satisfaction, certificate ofsatisfaction, or affidavit of satisfaction of the security instrument andbefore the recording of the document of rescission; and

2. Would otherwise have priority over or take free of the lien created by thesecurity instrument under the laws of the Commonwealth of Virginia.

D. A person, other than the clerk of the circuit court or any of hisemployees or other governmental official in the course of the performance ofhis recordation duties, who erroneously, fraudulently, or wrongfully recordsa document of rescission is subject to liability under § 55-66.3.

(2006, c. 907.)