The Business Bank v. Beavers

In this dispute between lien creditors of real property, we decide whether purchase money deeds of trust have been subordinated to the lien of a deed of trust for an alleged bona fide land acquisition, development, and construction loan (ADC loan).

In 1988, three married couples owned separate but contiguous parcels of agricultural land in Stafford County: Charles R. and Martha R. Beavers owned 37.907914 acres; Randolph I. and Bernadette Butler, 35.82514 acres; and David A. and Janice M. Beavers, 10.88682 acres. In the early part of 1988, Frederick M. Lacey, Jr., a real estate developer, met…