Sovran Bank, N. A. v. Creative Industries, Inc.

In this appeal, we consider whether a provision in a contract of sale of real property is sufficient to create a leasehold estate.

On April 24, 1990, A.O. Krautz, Inc. and Richard A. Ledford executed a contract of sale of real property. Ledford agreed to convey to Krautz two parcels of land, described as Lots 4A and 5, Section 6 of the Hanover Industrial Airpark, and improvements thereon for $1,050,000. The property was conveyed by deed dated June 21, 1990, and recorded among the land records of Hanover County.

Sovran Bank, N.A., financed Krautz’s purchase of the property as evidenced by two…