Fairfax County Redevelopment and Housing Authority v. Riekse

Summary

The Supreme Court of Virginia held that a deed conveying property acquired through foreclosure was not void ab initio merely because the property was subject to a right of first refusal. The court further held that specific performance could not be ordered against prior owners who no longer held title to the property. The court affirmed dismissal of the Fairfax County Redevelopment and Housing Authority's action.

Holdings

1. The deed was not void ab initio. A conveyance to a subsequent purchaser who lacked actual knowledge of the right of first refusal, without collusion to defeat the prior contractual obligation, does not warrant the extraordinary remedy of declaring the executed deed void ab initio.
2. Specific performance could not be ordered against the Kapanis because they no longer held title and therefore could not convey the property to Fairfax.
3. On the posture of this case, Fairfax's remedy was enforcement of the right of first refusal as a condition subsequent through an action of ejectment, rather than specific performance by the Kapanis.

Questions Presented

1. Whether the deed conveying the property from the Kapanis to Riekse was void ab initio because the conveyance allegedly violated Fairfax's right of first refusal.
2. Whether Fairfax could obtain specific performance of the right of first refusal from the Kapanis after they had conveyed the property and no longer held title.
3. Whether Fairfax's right of first refusal could be enforced only as a condition subsequent through an action of ejectment.

Disposition

affirmed