-
Subchapter 001: MANNER OF CONVEYING INTERESTS IN OR AFFECTING REALTY
§ 301. Manner of conveying
Conveyance of land or of an estate or interest in land may be made by deed executed
by a person duly authorized to convey it, or by the person’s attorney, and acknowledged
and recorded as provided in this chapter. (Amended 2023, No. 6, § 321, eff. July 1, 2023.)
§ 302. Effect of oral conveyance
Estates or interests in lands, created or conveyed without an instrument in writing
shall have the effect of estates at will only. An estate or interest in lands shall
not be assigned, granted, or surrendered unless by operation of law or by a writing
signed by the grantor or his or her attorney.
§ 303. Trusts concerning realty
A trust concerning lands, excepting such as may arise or result by implication of
law, shall not be created or declared unless by an instrument in writing signed by
the party creating or declaring the same or by his or her attorney.
§ 304. Assignment of lease to be by deed
The assignment of a lease of lands, if the lease is for a longer term than one year,
shall be by deed, signed, sealed, witnessed, acknowledged, and recorded as provided
for deeds in this chapter. An assignment otherwise executed shall be void as against
all persons but the assignor, his or her heirs, or his or her devisees.
§ 305. Conveyances effected through power of attorney
(a) A deed or other conveyance of lands or of an estate or interest therein, made by virtue
of a power of attorney, shall not be of any effect or admissible in evidence unless
the power of attorney is signed, acknowledged, and recorded in the office where the
deed is required to be recorded.
(b) Nothing in subsection (a) of this section shall limit the enforceability of a power
of attorney which is executed in another state or jurisdiction in compliance with
the law of that state or jurisdiction. This subsection shall apply retroactively,
except that it shall not affect a suit begun or pending as of July 1, 2010. (Amended 1973, No. 211 (Adj. Sess.); 1995, No. 6, § 1, eff. March 15, 1995; 2009, No. 132 (Adj. Sess.), § 6, eff. May 29, 2010; 2023, No. 6, § 322, eff. July 1, 2023; 2023, No. 161 (Adj. Sess.), § 18, eff. June 6, 2024.)
§ 306. Evidence
When a deed is made by virtue of a power of attorney thus executed and recorded, a
certified copy of the record of such power of attorney may be read in evidence when
the original cannot be produced.
§ 307. Vendor’s liens
The vendor of real estate shall not have a lien thereon for unpaid purchase money,
except such lien as is created and evidenced by deed executed, acknowledged, and recorded
as deeds of conveyance of real estate.
§ 308. Mines and quarries
The grantee of a mine, quarry, or of the right of mining and quarrying, in severance
from the ownership of the soil, within 30 days after its execution, shall cause his
or her deed, lease, or other instrument to be recorded in a book kept for that purpose
in the office where by law a deed of the real estate is required to be recorded.
A grantee failing to comply with the foregoing provision shall forfeit to the town,
or in case such a mine, quarry, or right of mining or quarrying is situated in an
unorganized town or gore, to the county, $50.00, to be recovered in an action on this
statute.
§ 309. Proration of taxes
(a) Unless otherwise expressly stated or agreed, in any offer or contract for the purchase
and sale of real property, real property taxes assessed and payable shall be prorated
as follows so that as between the parties, but not otherwise:
(1) In municipalities where the municipal tax and the school tax fiscal periods are July
1 to June 30, the seller shall bear the burden of real estate taxes allocable to the
period beginning July 1 of that fiscal year and ending on the day before closing.
The buyer shall bear the burden of real estate taxes allocable to the period beginning
with the day of closing and ending on June 30.
(2) In municipalities where the municipal tax fiscal period is other than July 1 to June
30, the seller shall bear the burden of real estate taxes allocable to municipal taxes
for the period beginning on the first day of the municipality’s fiscal year and ending
on the day before closing. The seller shall also bear the burden for real estate taxes
allocable to school taxes for the period beginning July 1 of that fiscal year and
ending on the day before closing. The buyer shall bear the burden of real estate taxes
allocable to both school and municipal taxes for the period beginning with the day
of closing and ending with the last day of the respective fiscal year.
(b) This section shall not abridge or affect any other provision of 32 V.S.A. part 2 relating
to assessment of property taxes. (Added 1971, No. 80, § 1, eff. April 16, 1971; amended 2001, No. 90 (Adj. Sess.), § 1, eff. May 1, 2002; 2003, No. 150 (Adj. Sess.), § 2.)
-
Subchapter 002: EXECUTION AND ACKNOWLEDGMENT
§ 341. Requirements generally; recording
(a) Deeds and other conveyances of lands, or of an estate or interest in land, shall be
signed by the party granting the same and acknowledged by the grantor before a notary
public and recorded at length in the clerk’s office of the town in which the lands
lie. The acknowledgment before a notary public shall be valid without an official
stamp being affixed to the notary’s signature.
(b)(1) A deed or other conveyance of land that includes a reference to a survey prepared
or revised after July 1, 1988 may be recorded only if it is accompanied by the survey
to which it refers, or cites the volume and page in the land records showing where
the survey has previously been recorded.
(2) If the conveyance of land results in the subdivision of a parcel or a change in the
boundaries of a parcel after January 1, 2020, the deed shall:
(A) be accompanied by a survey plat that depicts the new parcel boundaries; or
(B) cite the volume and page in the land records that indicates where the new parcel boundaries
have previously been recorded.
(3) The failure to comply with this subsection shall not:
(A) void or invalidate the deed or other instruments recorded; or
(B) render the title to the property depicted in the survey plat unmarketable.
(c) A lease of real property that has a term of more than one year from the making of
the lease need not be recorded at length if a notice or memorandum of lease, which
is executed and acknowledged as provided in subsection (a) of this section, is recorded
in the land records of the town in which the leased property is situated. The notice
of lease shall contain at least the following information:
(1) the names of the parties to the lease as set forth in the lease;
(2) a statement of the rights of a party to extend or renew the lease;
(3) any addresses set forth in the lease as those of the parties;
(4) the date of the execution of the lease;
(5) the term of the lease, the date of commencement, and the date of termination;
(6) a description of the real property as set forth in the lease;
(7) a statement of the rights of a party to purchase the real property or exercise a right
of first refusal with respect thereto;
(8) a statement of any restrictions on assignment of the lease; and
(9) the location of an original lease.
(d)(1) A deed or other instrument may be recorded in the land records pursuant to this section
for the purposes provided in this chapter and shall be deemed to impart notice of
its contents if it is signed and acknowledged in accordance with the procedures specified
in the Emergency Administrative Rules for Remote Notarial Acts adopted by the Vermont
Secretary of State (the Emergency Rules) during the period that the Emergency Rules
are in effect.
(2) A deed or other instrument executed in compliance with the Emergency Rules shall be
presumed to be valid if the notarial certificate attached to the deed or other instrument
contains an affirmative statement of compliance with the Emergency Rules. (Amended 1967, No. 231 (Adj. Sess.), § 1, eff. Jan. 24, 1968; 1973, No. 249 (Adj. Sess.), § 84, eff. April 9, 1974; 1987, No. 220 (Adj. Sess.); 1993, No. 174 (Adj. Sess.), § 1; 1997, No. 86 (Adj. Sess.), § 1; 2003, No. 150 (Adj. Sess.), § 5; 2017, No. 24, § 3, eff. May 4, 2017; 2017, No. 28, § 5, eff. May 10, 2017; 2017, No. 160 (Adj. Sess.), § 2, eff. July 1, 2019; 2019, No. 38, § 5, eff. Jan. 1, 2020; 2019, No. 95 (Adj. Sess.), § 3, eff. April 28, 2020; 2023, No. 6, § 323, eff. July 1, 2023.)
§ 342. Acknowledgment and recording required
A deed of bargain and sale, a mortgage or other conveyance of land in fee simple or
for term of life, or a lease for more than one year from the making thereof shall
not be effectual to hold such lands against any person but the grantor and his or
her heirs, unless the deed or other conveyance is acknowledged and recorded. (Amended 2017, No. 160 (Adj. Sess.), § 3, eff. July 1, 2019.)
§ 343. Conveyance of wife’s real estate
A husband and wife, by their joint deed, may convey the real estate of the wife as
she might do by her separate deed if unmarried.
§ 344. Conveyances of joint interests when husband under disability
The wife of a man under guardianship may join with the guardian in making partition
of her real estate held in joint tenancy or in common and, with the guardian, may
jointly make a release or other conveyance for that purpose, as she might have done
with her husband if he had not been under legal disability.
§ 345. Conveyances of wife’s realty in which disabled husband has an interest
When the guardian of a married man is licensed to sell the interests of the ward in
any real estate of his wife, the wife may join with the guardian in the conveyance
and convey her estate and interest in the granted premises as she might have done
with her husband if he had not been under legal disability, but this section shall
not authorize the conveyance of the ward’s estate of homestead.
§ 346. Conveyances by corporation
A public or private corporation authorized to hold real estate may convey the same
by an agent appointed by vote for that purpose.
§ 347. Validity of deeds executed under prior law
Deeds of bargain and sale, mortgages or other conveyances of real estate, previously
made and executed according to former laws and usages in this State, shall be valid
and effectual. (Amended 2023, No. 6, § 324, eff. July 1, 2023.)
§ 348. Instruments concerning real property validated
(a) When an instrument of writing shall have been on record in the office of the clerk
in the proper town for a period of 15 years, and there is a defect in the instrument
because it omitted to state any consideration or was not sealed, witnessed, acknowledged,
validly acknowledged, or because a license to sell was not issued or is defective,
the instrument shall, from and after the expiration of 15 years from the filing thereof
for record, be valid. Nothing in this section shall be construed to affect any rights
acquired by grantees, assignees, or encumbrancers under the instruments described
in the preceding sentence, nor shall this section apply to conveyances or other instruments
of writing, the validity of which is brought in question in any suit now pending in
any courts of the State.
(b) Notwithstanding subsection (a) of this section, any deed, mortgage, lease, power of
attorney, release, discharge, assignment, or other instrument made for the purpose
of conveying, leasing, mortgaging, or affecting any interest in real property that
contains any one or more of the following errors is valid unless, within three years
after the instrument is recorded, an action challenging its validity is commenced
and a copy of the complaint is recorded in the land records of the town where the
instrument is recorded:
(1) The instrument contains a defective acknowledgment.
(2) In the case of a conveyance by a corporation, limited liability company, partnership,
limited partnership, or limited liability partnership, or by any other entity authorized
to hold and convey title to real property within this State, the instrument designated
such entity as the grantor but was signed or acknowledged by an individual in the
individual capacity of such person, or fails to disclose the authority of the individual
who executes and acknowledges the instrument.
(3) The instrument contains an incorrect statement of the date of execution, or contains
an execution date, or other date that is later than the date of the recording. In
case of such conflict, the date of recording prevails.
(4) The instrument does not contain a statement of consideration.
(5) The acknowledgement clause of an instrument executed by an attorney-in-fact inaccurately
recites the personal appearance of the principal and not the attorney-in-fact who
personally appeared on behalf of the principal.
(c) Notwithstanding the provisions of subsection (a) of this section, any deed, mortgage,
lease, power of attorney, release, discharge, assignment, or other instrument made
for the purpose of conveying, leasing, mortgaging, or affecting any interest in real
property that is executed pursuant to a recorded power of attorney and contains one
or more of the following errors or omissions is valid as if it had been executed without
the error or omission:
(1) The instrument was executed by an attorney-in-fact but was signed or acknowledged
by the attorney-in-fact without reference to his or her capacity.
(2) The instrument was executed by an attorney-in-fact but does not reference the power
of attorney.
(3) The power of attorney was effective at the time the instrument was executed but is
recorded after the instrument is recorded.
(d) A release, discharge, or assignment of mortgage interest executed by a commercial
lender with respect to a one- to four-family residential real property, including
a residential unit in a condominium or in a common interest community as defined in
Title 27A, that recites authority to act on behalf of the record holder of the mortgage
under a power of attorney but where the power of attorney is not of record shall have
the same effect as if executed by the record holder of the mortgage unless, within
three years after the instrument is recorded, an action challenging the release, discharge,
or assignment is commenced and a copy of the complaint is recorded in the land records
of the town where the release, discharge, or assignment is recorded. This subsection
shall not apply to releases, discharges, or assignments obtained by fraud or forgery.
(e) A power of attorney made for the purpose of conveying, leasing, mortgaging, or affecting
any interest in real property that has been acknowledged and signed in the presence
of at least one witness shall be valid, notwithstanding its failure to comply with
14 V.S.A. § 3503 or the requirements of the Emergency Administrative Rules for Remote Notarial Acts
adopted by the Vermont Secretary of State, unless within three years after recording,
an action challenging its validity is commenced and a copy of the complaint is recorded
in the land records of the town where the power of attorney is recorded. This subsection
shall not apply to a power of attorney obtained by fraud or forgery.
(f) Notwithstanding section 305 of this title, a deed, mortgage, lease, or other instrument
executed for the purpose of conveying or encumbering real property executed by a person
purporting to act as the agent or attorney-in-fact for the party named in the deed,
mortgage, lease, or other instrument that has been recorded for at least 15 years
in the land records where the real property is located shall be valid even if no power
of attorney authorizing and empowering an agent or attorney-in-fact appears of record,
unless, within 15 years after recording, an action challenging the validity of the
deed, mortgage, lease, or other instrument is commenced and a copy of the complaint
is recorded in the land records of the town where the property is located. This subsection
shall not apply to an instrument obtained by fraud or forgery. (Added 1977, No. 79, § 1, eff. April 27, 1977; amended 2007, No. 177 (Adj. Sess.), § 2; 2009, No. 132 (Adj. Sess.), § 7, eff. May 29, 2010; 2021, No. 19, § 1, eff. May 6, 2021; 2023, No. 6, § 325, eff. July 1, 2023; 2025, No. 64, § 18, eff. June 12, 2025.)
§ 349. Conveyance to grantor and others
(a)(1) Without an intervening conveyance, a person may convey interests in real estate directly:
(A) to themselves in a different legal capacity;
(B) to the person’s spouse; or
(C) to themselves and one or more other persons, including the person’s spouse.
(2) A person shall not convey an interest in a tenancy by the entirety or in homestead
property to any person except the person’s spouse, unless the spouse joins in the
conveyance.
(b) A conveyance made pursuant to this section shall be effective to convey such title
as would be conveyed by the deed if the grantor were not also a grantee. (Added 1977, No. 134 (Adj. Sess.); amended 1979, No. 160 (Adj. Sess.), § 1, eff. April 26, 1980; 2023, No. 161 (Adj. Sess.), § 23, eff. June 6, 2024.)
§ 350. Change in name or status of owner of real estate
Any person or corporation owning real estate or having an interest in real estate
whose name has been changed, and any corporation that has been merged into or consolidated
with another, may file with the town clerk of the town in which the real estate is
located a certificate giving the names before and after the change, merger, or consolidation,
and the town clerk shall record and index the certificate in the land records. (Added 1993, No. 174 (Adj. Sess.), § 3.)
§ 351. Estates and trusts; conveyances, satisfactions, grants, and releases
(a) A conveyance or grant of an interest in real or personal property made to the estate
of a decedent, to the estate of a ward, to the ward’s guardian, or to a trust, including
a trust in the form of a pension or profit-sharing plan, that names the estate, the
guardian, or the trust as the grantee of the interest is a valid and effective conveyance
or grant to the personal representative, to the ward, or to the trustee of the trust,
in like manner and effect as if the ward, or the personal representative or trustee
in his or her fiduciary capacity, had been named the grantee of the conveyance or
grant.
(b) A discharge, mortgage discharge, release, conveyance, grant, or satisfaction of an
interest in real or personal property that is made by an estate, a guardian, or a
trust described in subsection (a) of this section that names the estate, the guardian,
or the trust as the holder or grantor of the interest and that is executed by the
personal representative or trustee authorized to execute the instrument is valid in
like manner and effect as if the personal representative, guardian, or trustee had
been named the holder or the grantor in the instrument. (Added 2003, No. 150 (Adj. Sess.), § 3.)
§ 352. Repealed. 2009, No. 20, § 27.
§ 371. Proving execution when grantor dies or leaves State
When a grantor or lessor dies or leaves the State without acknowledging the grantor’s
or lessor’s deed, the execution of the deed may be proved by the testimony of a subscribing
witness before a Justice of the Supreme Court or a Superior Judge. If all the subscribing
witnesses to the deed are dead or out of the State, the execution of the deed may
be proved before the Supreme or Superior Court by proving the handwriting of the grantor
or lessor and of a subscribing witness or adducing other evidence to the satisfaction
of the court. Such evidence entered on the deed or annexed thereto shall be equivalent
to the grantor’s or lessor’s acknowledgment of the deed. (Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2023, No. 6, § 326, eff. July 1, 2023.)
§ 372. Proceedings when grantor refuses to acknowledge—summons
When a grantor or lessor refuses to acknowledge the grantor’s or lessor’s deed, the
grantee or lessee, or a person claiming under the grantee or lessee, may apply to
a Superior Judge who shall issue a summons to the grantor or lessor to appear at a
certain time and place before the judge to hear the testimony of the subscribing witnesses
to the deed. The summons, with a copy of the deed annexed thereto, shall be served
like a writ of summons at least seven business days before the time assigned in the
summons for proving the deed. (Amended 1973, No. 249 (Adj. Sess.), § 85, eff. April 9, 1974; 2017, No. 11, § 55; 2023, No. 6, § 327, eff. July 1, 2023.)
§ 373. Notice
When the summons is served by leaving a copy at the usual place of abode of the grantor
or lessor, and it does not appear that actual notice was given, the judge shall continue
the hearing from time to time, not exceeding 90 days, and direct that actual notice
be given if the party resides in the State. When such notice cannot be given, the
judge shall proceed in the examination as provided in section 374 of this title, and the judge’s certificate of the execution of the deed shall have the same effect
as provided in that section. (Amended 1973, No. 249 (Adj. Sess.), § 86, eff. April 9, 1974; 2023, No. 6, § 328, eff. July 1, 2023.)
§ 374. Hearing and certificate
When it appears from the officer’s return that a copy of such summons was delivered
to the grantor or lessor, the judge may take evidence of one or more of the subscribing
witnesses to the execution of such deed, at the time designated for hearing or at
an adjournment thereof. If such execution is proved to the satisfaction of the judge,
he or she shall certify the same thereon and in his or her certificate shall note
the presence or absence of the grantor or lessor and such certificate shall be equivalent
to the acknowledgment of the grantor or lessor. (Amended 1973, No. 249 (Adj. Sess.), § 87, eff. April 9, 1974.)
§ 375. Witnesses dead or out of State
When a grantor or lessor refuses to acknowledge his or her deed and the subscribing
witnesses to the same are dead or out of the State, it may be proved before the Supreme
or any Superior Court by proving the handwriting of the grantor or lessor and of a
subscribing witness, such court first summoning the grantor or lessor as provided
in this chapter. (Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 376. Repealed. 1967, No. 231 (Adj. Sess.), § 2, eff. Jan. 24, 1968.
§ 377. Repealed. 1973, No. 249 (Adj. Sess.), § 111, eff. April 9, 1974.
§ 378. Effect of recording unacknowledged deed
A person interested in a deed or lease not acknowledged may cause the deed or lease
to be recorded without acknowledgment before or during the application to the court
or the proceedings before any of the authorities named in sections 371–375 of this
title; and, when so recorded in the proper office, it shall be as effectual as though
the same had been duly acknowledged and recorded for 60 days thereafter. If such proceedings
for proving the execution of the deed are pending at the expiration of such 60 days,
the effect of such record shall continue until the expiration of six business days
after the termination of the proceedings. (Amended 2017, No. 11, § 56; 2023, No. 161 (Adj. Sess.), § 24, eff. June 6, 2024.)
§ 379. Repealed. 2017, No. 160 (Adj. Sess.), § 5, effective July 1, 2019.
§ 380. Disclosure of information; conveyance of real estate
(a) Prior to or as part of a contract for the conveyance of real property, the seller
shall provide the buyer with the following information:
(1) [Repealed.]
(2) [Repealed.]
(3) a physical or electronic copy or a digital link of the official flood insurance rate
map, as published by the Federal Emergency Management Agency, or notice that a flood
insurance rate map is unavailable effective for the community in which the real property
is located;
(4) whether the real property was subject to flooding or flood damage while the seller
possessed the property, including flood damage from inundation or from flood-related
erosion or landslide damage; and
(5) whether the seller maintains or is required by federal or State law to maintain flood
insurance on the real property.
(b) The failure of the seller to provide the buyer with the information required under
subsection (a) of this section is grounds for the buyer to terminate the contract
prior to transfer of title or occupancy, whichever occurs earlier.
(c) If a seller of real estate fails to provide the information required to be disclosed
by a seller under subsection (a) of this section, a buyer may bring an action to recover
from the seller the amount of the buyer’s damages and reasonable attorney’s fees.
The buyer may also seek punitive damages when the seller knowingly failed to provide
the required information.
(d) A seller shall not be liable for damages under this section for any error, inaccuracy,
or omission of any information required to be disclosed to the buyer under subsection
(a) of this section when the error, inaccuracy, or omission was based on information
provided by a public body or by another person with a professional license or special
knowledge who provided a written report that the seller reasonably believed to be
correct and that was provided by the seller to the buyer.
(e) Noncompliance with the requirements of this section shall not affect the marketability
of title of a real property. (Added 2023, No. 181 (Adj. Sess.), § 102, eff. June 17, 2024; amended 2025, No. 52, § 2, eff. September 1, 2025.)
-
Subchapter 003: RECORDING
§ 401. Index of deeds by county clerk; penalty
(a) The county clerk shall keep for public use a general index of the record of deeds
and other transfers of land recorded in his or her office, similar to those required
to be kept by town clerks, but this section shall not apply to transfers of the title
under a judgment or order of court.
(b) A county clerk who neglects to keep the index required in subsection (a) of this section
shall be fined $50.00 for each six months’ neglect.
§ 402. Record in county clerk’s office
A purchaser of lands, in addition to the record in the town clerk’s office, may cause
his or her deed or other conveyance with the certificate of its record in the town
clerk’s office to be recorded by the county clerk of the county in which such lands
lie, in the book kept for the purpose of recording deeds. If the records of a town
in which such deed or conveyance is recorded are destroyed, an attested copy of such
deed or other conveyance from the office of such county clerk shall be of the same
validity as a copy from the town clerk’s office.
§ 403. Records when lands lie in unorganized place
Deeds and conveyances of lands in an unorganized town, gore, or grant shall be recorded
by the clerk of the county in which such lands lie in a book to be kept by him or
her for that purpose, which shall be a sufficient record thereof.
§ 404. Lost instruments affecting property titles; copy recorded in another town
When an instrument in writing affecting the title to real estate in more than one
town is lost, destroyed, or defaced, if such instrument has been recorded in any town,
upon complaint and proof, the Superior Court may order a copy of such record to be
recorded in any town where a part of such real estate is situated. The proceedings
upon such complaint shall be the same as in case of judgment files lost or destroyed,
and a record so made shall be treated as a record of the original instrument. (Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 405. Vendor to record title on request
When a person sells and conveys lands, or an estate or interest in land, the person
shall cause the person’s title deed to be recorded in the land records office within
six months after request made in writing by a subsequent purchaser of the same lands
or an estate or interest in the lands. (Amended 2023, No. 6, § 329, eff. July 1, 2023.)
§ 406. Proceedings upon vendor’s refusal
When such person, after being so requested and after the expiration of said six months,
has not procured the person’s deed to be recorded, a judge, on the complaint of the
party whose right or title is liable to be affected by such neglect, may issue a warrant
to immediately bring the person before the judge to be examined in the premises. (Amended 1973, No. 249 (Adj. Sess.), § 88, eff. April 9, 1974; 2023, No. 6, § 330, eff. July 1, 2023.)
§ 407. Commitment of vendor for refusal
When such person does not show sufficient cause for omitting to procure his or her
deed to be recorded, the judge shall sentence him or her to jail, there to remain
until he or she procures it to be recorded and pays the costs of the complaint and
commitment. Either party may appeal from the decision of such judge as provided in
this chapter. Such person shall also be further liable for damages to the party whose
right or title is affected in an action on this statute. (Amended 1973, No. 249 (Adj. Sess.), § 89, eff. April 9, 1974.)
§ 408. Recording subordination of liens
An agreement for the subordination of a prior lien or other encumbrance on real property
shall be recorded in the land records of the town in which the property is situated,
and a reference to the record of the subordination agreement shall be noted on the
margin of the record of the instrument affected by the agreement. If not so recorded,
the agreement shall bind only the parties to the agreement. (Amended 2023, No. 6, § 331, eff. July 1, 2023.)
§ 409. Record of assignment by landlord
An assignment of or any agreement affecting the rights or interest of a landlord or
owner of real property occupied by a tenant or sharecropper shall be recorded in the
land records of the town in which the property is situated. If not so recorded, the
same shall bind only the parties to the assignment. (Amended 2023, No. 6, § 332, eff. July 1, 2023.)
§ 410. Lien priorities
(a) Definitions. For purposes of this section, the following definitions shall apply:
(1) “Debtor” means a person who owes payment or other performance of an obligation secured,
but if the debtor and the owner of real estate are not the same person, the term means
the owner of real estate in any provision of this section dealing with collateral.
(2) “Future advances” means funds advanced to a debtor, or other obligations incurred
on behalf of a debtor, by a mortgagee after the debtor executes a mortgage.
(3) “Future advances made to protect collateral” means future advances made or incurred:
(A) for the reasonable protection of the mortgagee’s interest in the collateral, such
as payment of real property taxes, hazard insurance premiums, or maintenance charges
imposed under a common interest community declaration or other restrictive covenant;
or
(B) under a mortgage, created to enable completion of a contemplated improvement, that
secures an obligation that the debtor incurred at the time of execution of the mortgage
for the purpose of making an improvement of the real estate in which the mortgage
interest is given.
(4) A future advance is made “pursuant to commitment” if the mortgagee is bound at the
time the mortgage is created to make it, whether or not a default or other event not
within its control has relieved or may relieve it from its obligation. A future advance
made “pursuant to commitment” shall also include advances and readvances made pursuant
to an agreement whereby the debtor is entitled to borrow and reborrow sums advanced
under it.
(b) Lien priorities; future advances.
(1) An obligation secured by a mortgage may include future advances, whether or not future
advances are made pursuant to commitment.
(2) A future advance made to protect collateral is secured by a mortgage even though the
mortgage does not provide for future advances.
(3) Except as expressly set forth in 9 V.S.A. chapter 51, subchapter 1, a future advance made under a recorded mortgage takes priority as
of the date of the recording:
(A) if made pursuant to commitment, to the extent of the outstanding future advances that
do not exceed the maximum amount stated in the mortgage; or
(B) if not made pursuant to commitment, to the extent of future advances that are outstanding
before the mortgagee receives written notice of the intervening interest.
(4) A future advance made to protect collateral takes priority as of the date a mortgage
is recorded, even though the mortgagee has received written notice of an intervening
interest at the time the future advance is made.
(c) If a mortgaged property includes a homestead within the meaning of chapter 3 of this
title, any future advance made pursuant to commitment shall not require spousal consent
pursuant to section 141 of this title, provided that such written spousal consent to the mortgage was previously obtained
or was not required at the time of the making of the mortgage.
(d) In the case of conflict between this section and any other provision of law, except
for the provisions of Title 9A, this section shall control. (Added 1999, No. 153 (Adj. Sess.), § 32, eff. May 24, 2000; amended 2023, No. 6, § 333, eff. July 1, 2023.)
-
Subchapter 004: MORTGAGES
§ 441. Manner of mortgaging machinery
Machinery attached to or used in a shop, mill, quarry, mine, printing office, or factory
may be mortgaged by deed executed, acknowledged and recorded as deeds of real estate.
Such mortgages may be assigned, discharged, or foreclosed as mortgages of real estate.
§ 442. Attachment and sale of machinery mortgaged with real estate
If machinery is mortgaged with real estate, the equity of redemption in such machinery
and real estate may be attached and sold on execution as real estate is sold.
§ 461. By entry on record
Mortgages may be discharged by an entry on the margin of the record thereof in the
record of deeds, acknowledging satisfaction of the mortgage, signed by the mortgagee
or by his or her executor, administrator, assignee, attorney at law, or attorney acting
under a duly executed and recorded power of attorney, such signature to be witnessed
by the town clerk or assistant town clerk having custody of such record. Such entry
shall have the same effect as a deed of release acknowledged and recorded.
§ 462. By acknowledgment of payment
Mortgages may also be discharged by the mortgagee or by his or her executor, administrator,
assignee, attorney at law, or attorney acting under a duly executed and recorded power
of attorney, acknowledging payment thereof by an entry on the mortgage deed, signing
the same in the presence of one or more witnesses, which entry, upon being recorded
on the margin of the record of such mortgage in the record of deeds, shall discharge
such mortgage and bar all actions brought thereon.
§ 463. By separate instrument
(a) Mortgages may be discharged by an acknowledgment of satisfaction, executed by the
mortgagee or his or her attorney, executor, administrator, or assigns, which shall
be substantially in the following form:
I hereby certify that the following described mortgage is paid in full and satisfied,
viz: ________ mortgagor to ________ mortgagee, dated ________ 20__ , and recorded in book ___ , page ___ , of the land records of the town of ____________________ .
(b) When such satisfaction is acknowledged before a notary public and recorded, it shall
discharge such mortgage and bar actions brought thereon. (Amended 1973, No. 47, § 2, eff. April 12, 1973; 2003, No. 150 (Adj. Sess.), § 6; 2017, No. 28, § 6, eff. May 10, 2017; 2017, No. 160 (Adj. Sess.), § 4, eff. July 1, 2019.)
§ 464. Liability of mortgagee for failure to provide payoff statements and refusal to discharge
(a) Within five business days after the mortgagee’s receipt of a written request for a
statement of the amount of funds or other obligations required to satisfy a note or
other obligation secured by a mortgage, the mortgagee shall provide a written payoff
statement to the mortgagor. The mortgagee shall not impose a fee or other charge for
providing the payoff statement, unless the request specifically asks for expedited
service. A request for a payoff statement shall include the name of the mortgagor,
the loan number assigned to the loan, and the address of the property securing the
loan. If a written payoff statement is not deposited in the U.S. mail, delivered to
a courier service, sent by facsimile, or sent by other method of service customarily
used for delivery of messages, within five business days after receiving the request,
the holder and any servicer shall be jointly and severally liable to any aggrieved
party in a civil action for statutory damages equal to $25.00 per day after the expiration
of the five business days, up to an aggregate maximum of $5,000.00 for all aggrieved
parties; provided, however, any servicer not authorized to issue a payoff statement
shall not be liable as set forth in this subsection.
(b) Within 30 days after full performance of the conditions of the mortgage, the mortgagee
of record shall execute and deliver a valid and complete discharge as provided in
sections 461-463 of this title, together with any instrument necessary to establish the mortgagee’s record ownership
of the mortgage and to establish the authority to execute the discharge. As used in
this section, the term “mortgagee” shall mean both the holder of the mortgage at the
time it is satisfied and any servicer who receives the final payment satisfying the
debt. If a discharge is not executed and delivered within 30 days, the holder and
any servicer shall be jointly and severally liable to any aggrieved party in a civil
action for statutory damages equal to $25.00 per day after the expiration of the 30
days, up to an aggregate maximum of $5,000.00 for all aggrieved parties; provided,
however, any servicer not authorized to execute such discharge shall not be liable
as set forth in this subsection. With respect to a mortgagee securing an open-end
line of credit, the 30-day period to deliver a discharge commences after the mortgagor
delivers to the address designated for payments under the line of credit a written
request to terminate the line of credit and mortgage, together with payment in full
of all amounts secured by the mortgage.
(c) The aggrieved party may file an action under subsection (a) or (b) of this section
in Superior Court or, if the action is for monetary damages only and if the ad damnum
requested is equal to or less than the maximum jurisdiction of a small claims proceeding,
the complaint may be filed as a small claims action.
(d) In addition to any statutory damages, the mortgagee shall also be liable for consequential
damages, punitive damages, court costs, and reasonable attorney’s fees to any aggrieved
party who substantially prevails in an action under this section. An aggrieved party
may file an action to recover such damages, costs, and fees in Superior Court. The
court shall equitably allocate punitive damages among multiple aggrieved parties and
may grant such other relief as the court deems appropriate. (Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1999, No. 105 (Adj. Sess.), § 1; 2023, No. 6, § 334, eff. July 1, 2023.)
§ 464a. Discharge by licensed attorney
(a) A recorded mortgage may be discharged by an attorney-at-law licensed to practice in
this State if:
(1) the mortgagee, after receipt of payment of the mortgage in accordance with the payoff
statement furnished to the mortgagor by the mortgagee, or the mortgagee’s agent, fails
to execute and record a discharge of the mortgage in accordance with section 461, 462, or 463 of this title;
(2) the discharge is executed by, or is in the name of, a purported mortgagee that is
not holder of record of the mortgage; or
(3) the discharge of record was not executed in accordance with section 461, 462, or 463 of this title.
(b) An attorney-at-law who discharges a mortgage under this section shall execute and
record with the discharge an affidavit in the record of deeds affirming that:
(1) the affiant is an attorney-at-law in good standing and licensed to practice in Vermont;
(2) the affidavit is made at the request of the mortgagor or the mortgagor’s executor,
administrator, successor, assignee, or transferee or the transferee’s mortgagee;
(3) the purported mortgagee has provided a payoff statement with respect to the loan secured
by the mortgage;
(4) the purported mortgagee has received payment of the mortgage in accordance with the
payoff statement that has been proved by a bank check, certified check, or attorney
client funds account check negotiated by the purported mortgagee or by evidence of
receipt of payment by the purported mortgagee; and
(5) more than 30 days have elapsed since the payment was received by the purported mortgagee.
(c) The affidavit must include the names and addresses of the mortgagor, the original
mortgagee, and the purported mortgagee; the date of the mortgage; and the book and
page number and similar information with respect to the most recent recorded assignment
of the mortgage.
(d) The affiant shall attach to the affidavit the following, certifying that each copy
is a true copy of the original document:
(1) photocopies of the documentary evidence that payment has been received by the mortgagee,
provided that the payor’s account number may be redacted; and
(A) if paid by check, a photocopy of the mortgagee’s endorsement of the payoff check;
or
(B) if paid by wire, written confirmation that the monies wired left the sender’s account;
and
(2) a photocopy of the payoff statement received from the mortgagee or servicer.
(e) An affidavit recorded under this section has the same effect as discharge under section 461, 462, or 463 of this title.
(f) An attorney-at-law who executes and records a discharge of mortgage in accordance
with this section shall not be liable to the holder of the mortgage on account of
such discharge except in the event of negligence or fraud by the discharging attorney. (Added 1995, No. 162 (Adj. Sess.), § 38, eff. Jan. 1, 1997; amended 2007, No. 177 (Adj. Sess.), § 3; 2017, No. 24, § 1, eff. May 4, 2017.)
§ 465. When mortgagee dead
When it appears from the record of a mortgage on real estate that the mortgage is
undischarged, and the mortgagee, or the person to whom the mortgage is assigned, is
deceased, the owner of the real estate may make written application to the Probate
Division of the Superior Court of the district within which the real estate is situated
for the appointment of an administrator of the estate of the deceased mortgagee or
assignee to discharge the mortgage. The Probate Division of the Superior Court may
appoint an administrator of the deceased mortgagee or assignee to discharge the mortgage,
if upon hearing and upon payment of the costs of the hearing, the administrator is
satisfied that the conditions of the mortgage have been complied with and is further
satisfied that there is no person within the State having authority to discharge the
mortgage. (Amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011; 2023, No. 6, § 335, eff. July 1, 2023.)
§ 466. Notice to parties
The application provided in section 465 of this title shall state the names and addresses of all parties in interest, so far as they are
known to the applicant, and the Probate Division of the Superior Court shall order
such notice by registered mail, publication, or service of process, as to it shall
seem proper to protect the rights of all parties in interest. Failure on the part
of a party in interest to receive such notice shall be ground for relief under 12 V.S.A. § 2357 if the party is possessed of enforceable rights that are prejudiced by the discharge
of a mortgage as aforesaid. (Amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011; 2023, No. 6, § 336, eff. July 1, 2023.)
§ 467. When death of mortgagee not established
In case the death of a mortgagee or assignee is not established, and the court would
have jurisdiction to proceed under 14 V.S.A. §§ 2305 and 2306, the court, upon like petition, hearing, and proof, may appoint a trustee to discharge
such mortgage.
§ 468. Manner of Discharge by Trustee or Administrator
The mortgage may be discharged by the administrator or trustee in the manner provided
by law for the discharge of a mortgage by a mortgagee. The discharge shall have the
same effect as though made by the mortgagee or assignee when living. An administrator
or trustee appointed for such purpose shall have no authority relative to the estate
of which the administrator or trustee is appointed, other than as provided in this
section. The judge, in the judge’s discretion, may require the administrator or trustee
to give bonds as in the judge’s opinion the circumstances of the case require. (Amended 2023, No. 6, § 337, eff. July 1, 2023.)
§ 469. Mortgagee corporation whose charter has expired
When it appears from the record of a mortgage on real estate that the mortgage is
undischarged, and the mortgagee, or the assignee of the mortgage, is a private corporation
whose charter has expired by its own limitation, or has been dissolved by operation
of law, forfeiture, or for any other reason, a complaint may be brought to the presiding
judge of the Superior Court of the county where the mortgage is recorded and, after
such hearing as the presiding judge may direct, if the judge is satisfied that the
conditions of the mortgage have been complied with, and have no force in law, and
is further satisfied that there is no person within the State having authority to
discharge the mortgage, the judge may direct an order discharging the mortgage. The
proceedings shall be without taxation of costs except that the moving party shall
bear the costs of the notice as the presiding judge may order. (Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2023, No. 6, § 338, eff. July 1, 2023.)
§ 470. Validation of mortgage discharge on one- to four-family residential property
(a) Subject to the provisions of subsection (b) of this section, a mortgage discharge
executed on behalf of a banking or lending institution with respect to a mortgage
encumbering a one- to four-family residential real property, including a residential
unit in a condominium or in a common interest community as defined in Title 27A, that
is not valid because it is not executed by or is not issued by or in the name of the
record holder of the mortgage shall be valid as if it had been issued or executed
by the record holder of the mortgage if:
(1) no person has within three years after the discharge is recorded brought an action
challenging the validity of the discharge and recorded a copy of the complaint in
the land records of the town where the discharge is recorded; and
(2) an affidavit is recorded that is dated more than three years after the recording date
of the mortgage discharge and contains the following:
(A) a statement that the affiant has been the record owner of the real property described
in the mortgage for at least two years prior to the date of the affidavit;
(B) the recording information for the mortgage, any assignments, and the release;
(C) a statement that, since the date of the recording of the release, the affiant has
received no demand for payment of all or any portion of the debt secured by the mortgage
and has received no notice or communication that would indicate that all or any portion
of the mortgage debt remains due or owing; and
(D) a statement that, to the best of the affiant’s knowledge and belief, the mortgage
has been paid in full.
(b) The provisions of this section shall not apply to any release obtained by fraud or
forgery. (Added 2007, No. 177 (Adj. Sess.), § 4.)
-
Subchapter 006: MISCELLANEOUS
§ 541. Deeds of lands held adversely
Deeds, leases, and other conveyances of lands, duly executed, acknowledged, and recorded,
shall have the effect to convey such title therein as the grantor or lessor may have,
notwithstanding any actual possession of the lands by any other person claiming the
same. (Amended 2023, No. 6, § 339, eff. July 1, 2023.)
§ 542. Fraudulent deeds
Fraudulent and deceitful deeds, conveyances, and alienations of lands, or of an estate
or interest therein, and charges upon lands or upon the rents and profits thereof,
procured, made, or suffered with intent to avoid a right, debt, or duty of a person,
shall be void as against the person, and the person’s heirs or assigns, whose right,
debt, or duty is so intended to be avoided. (Amended 2023, No. 6, § 340, eff. July 1, 2023.)
§ 543. Highways as encumbrances
When real estate is conveyed by deed, the existence of a highway over or upon any
part of such estate shall not be treated as a breach of the covenant of seisin or
warranty or any covenant against encumbrances contained in such deed unless the parties
to such deed expressly refer to and covenant against such highway.
§ 544. Energy devices based on renewable resources
(a) No deed restrictions, covenants, or similar binding agreements running with the land shall prohibit or have the effect of prohibiting solar collectors, clotheslines, or other energy devices based on renewable resources from being installed on buildings erected on the lots or parcels covered by the deed restrictions, covenants, or binding agreements. A property owner may not be denied permission to install solar collectors or other energy devices based on renewable resources by any entity granted the power or right in any deed restriction, covenant, or similar binding agreement to approve, forbid, control, or direct alteration of property with respect to residential dwellings. For purposes of this subsection, that entity may determine the specific location where solar collectors may be installed on the roof within an orientation to the south or within 45° east or west of due south, provided that this determination does not impair the effective operation of the solar collectors.
(b) In any litigation arising under the provisions of this section, the prevailing party
shall be entitled to costs and reasonable attorney’s fees.
(c) The legislative intent in enacting this section is to protect the public health, safety,
and welfare by encouraging the development and use of renewable resources in order
to conserve and protect the value of land, buildings, and resources by preventing
measures that will have the ultimate effect, whether or not intended, of driving the
costs of owning and operating commercial or residential property beyond the capacity
of private owners to maintain. This section shall not apply to patio railings in condominiums,
cooperatives, or apartments. (Added 2009, No. 45, § 15d, eff. May 27, 2009.)
§ 545. Covenants, conditions, and restrictions of substantial public interest
(a) Deed restrictions, covenants, or similar binding agreements added after March 1, 2021
that prohibit or have the effect of prohibiting land development allowed under 24 V.S.A. § 4412(1)(E) and (2)(A) shall not be valid.
(b) Deed restrictions or covenants added after July 1, 2023 shall not be valid if they
require a minimum dwelling unit size on the property or more than one parking space
per dwelling unit if the property is located in an area served by municipal sewer
and water infrastructure as defined in 24 V.S.A. § 4303 that allows residential uses or more than 1.5 parking spaces for duplexes and multiunit
dwellings in areas not served by sewer and water and in areas that are located more
than one-quarter mile away from public parking rounded up to the nearest whole number
when calculating the total number of spaces.
(c) This section shall not affect the enforceability of any property interest held in
whole or in part by a qualified organization or State agency as defined in 10 V.S.A. § 6301a, including any restrictive easements, such as conservation easements and historic
preservation rights and interests defined in 10 V.S.A. § 822. This section shall not affect the enforceability of any property interest that is
restricted by a housing subsidy covenant as defined by section 610 of this title and held in whole or in part by an eligible applicant as defined in 10 V.S.A. § 303(4) or the Vermont Housing Finance Agency. (Added 2019, No. 179 (Adj. Sess.), § 4, eff. Oct. 12, 2020; amended 2021, No. 4, § 1, eff. Jan. 1, 2021; 2023, No. 47, § 20, eff. July 1, 2023.)
§ 546. Racially and religiously restrictive covenants in deeds prohibited
(a) A deed, mortgage, plat, or other recorded device recorded on or after July 1, 2022
shall not contain a covenant, easement, or any other restrictive or reversionary interest
purporting to restrict the ownership or use of real property on the basis of race
or religion.
(b) A covenant, easement, or any other restrictive or reversionary interest in a deed,
mortgage, plat, or other recorded device purporting to restrict the ownership or use
of real property on the basis of race or religion is declared contrary to the public
policy of the State of Vermont and shall be void and unenforceable. This subsection
shall apply to a restrictive covenant executed at any time. (Added 2021, No. 143 (Adj. Sess.), § 2, eff. July 1, 2022.)
-
Subchapter 007: MARKETABLE RECORD TITLE
§ 601. Requirements
(a) Any person who holds an unbroken chain of title of record to any interest in real
estate for 40 years shall at the end of that period be deemed to have a marketable
record title to the interest, subject only to such claims to the interest and such
defects of title as are not extinguished or barred under this chapter, and such interests,
limitations, or encumbrances as are inherent in the provisions and limitations contained
in the muniments of which the chain of record title is formed which have been recorded
during the 40-year period.
(b) For purposes of this section and sections 602 and 603 of this title, “person” shall mean and include any natural person, firm, partnership, corporation,
association, executor, administrator, guardian, trustee, fiduciary, or any other legal
entity, excepting the State of Vermont, political subdivisions of the State, and the
United States. (Added 1969, No. 235 (Adj. Sess.), § 2.)
§ 602. Unbroken chain; conditions and suspension
(a) A person shall be deemed to hold an unbroken chain of title to an interest in real
estate for purposes of this subchapter when the official public records disclose:
(1) a conveyance not less than 40 years in the past, properly executed and recorded according
to law, which purports to create such interest in such person with nothing appearing
of record during the 40-year period purporting to divest the person of the purported
interest; or
(2) a conveyance not less than 40 years in the past, executed and recorded according to
law, which purports to create such interest in some other person and other conveyances
or events of record by which the purported interest has become vested in the person
first referred to, with nothing appearing of record during the 40-year period purporting
to divest the person first referred to of such interest.
(b) No absence, incapacity, disability, or lack of knowledge of any kind on the part of
any person shall suspend the running of the 40-year period.
(c) For purposes of this section, “conveyance” means any deed, lease, decree, or other
written instrument proper on its face to transfer title to an interest in real estate
under the laws of this State and also includes the transfer of an interest in real
estate by inheritance or descent occasioned by death. (Added 1969, No. 235 (Adj. Sess.), § 2; amended 1971, No. 14, § 16, eff. March 11, 1971.)
§ 603. Successors in interest; notices of claim; filing for record
A person holding a marketable title under this subchapter shall hold the same, and
it shall be taken by his or her successors in interest, free and clear of any and
all interests, liens, claims, and charges the existence of which depends in whole
or in part upon any act, transaction, event, or omission that occurred prior to such
40-year period, whether or not the instrument purporting to create such interest,
lien, claim, or charge was properly executed so as to validly create the interest,
lien, claim, or charge, and all such interests, liens, claims, and charges are declared
void and of no effect either at law or in equity, except that any such interest, lien,
claim or charge may be preserved from the effect of this chapter if the holder of
the interest files for record within the 40-year period, a notice in writing, duly
verified by oath, setting forth the nature of the claim as provided in section 605 of this title. (Added 1969, No. 235 (Adj. Sess.), § 2.)
§ 604. Failure to file notice
(a) This subchapter shall not bar or extinguish any of the following interests by reason
of failure to file the notice provided for in section 605 of this title:
(1) the interest of any lessor or his or her successor as reversioner of the right to
possession on the expiration of any lease or any lessee or the successor to his or
her rights in and to any lease;
(2) any interest of a mortgagee, or interest in the nature of a mortgagee’s interest,
until after the obligation secured by the mortgage has become due and payable;
(3) any interest of a mortgagee, or interest in the nature of a mortgagee’s interest,
when the instrument creating the interest contains no due date for the obligation
secured thereby;
(4) any interest held by adverse possession not evidenced by a recorded instrument;
(5) any remainder interest, reverter or reversionary interest, or interest arising upon
a condition, except an interest arising upon a condition as to the distance between
a structure on real estate and a public highway or other property of a municipality;
(6) any easement or interest in the nature of an easement, the easement, the existence
of which is clearly observable by physical evidences of its use;
(7) any easement or interest in the nature of an easement, or any rights appurtenant thereto
granted, excepted, or reserved by a recorded instrument creating the easement or interest;
or
(8) any conservation rights or interests or preservation rights or interests created pursuant
to 10 V.S.A. chapters 34 and 155.
(b) This subchapter shall not affect any right, title, or interest in real estate owned
or held by the United States, the State of Vermont, or any political subdivision of
the State. (Added 1969, No. 235 (Adj. Sess.), § 2; amended 1977, No. 221 (Adj. Sess.), § 2, eff. April 12, 1978; 1985, No. 259 (Adj. Sess.), § 1; 2011, No. 118 (Adj. Sess.), § 6; 2015, No. 84 (Adj. Sess.), § 3; 2023, No. 6, § 341, eff. July 1, 2023.)
§ 605. Contents of notice of claim; recording
(a) To be effective, the notice referred to in section 603 of this title shall contain a full and accurate description of the land affected by the notice,
set forth in particular terms, shall be recorded at length in the land records in
the office where a deed of the land is required to be recorded, and shall be indexed
in the general index for deeds under the claimant’s name as grantee and under the
name of the current record owner of the land as grantor.
(b) The notice provided for in this section and section 603 of this title may be filed by a claimant or any person acting on behalf of a claimant if such claimant
is:
(1) under a disability;
(2) unable to assert a claim on his or her own behalf; or
(3) one of a class whose identity is uncertain.
(c) When a notice is filed for record under this section, it shall remain effective for
a period of 40 years from the date of filing. (Added 1969, No. 235 (Adj. Sess.), § 2; amended 1971, No. 14, § 17, eff. March 11, 1971; 1993, No. 68, § 8.)
§ 606. Limitation of actions
Nothing in this subchapter shall extend the periods for the bringing of an action
or suit or for the doing of any act required under existing statutes of limitation
nor affect the operation of existing statutes governing the effect of the recording
of or of the failure to record instruments affecting real estate. (Added 1969, No. 235 (Adj. Sess.), § 2; amended 1971, No. 14, § 18, eff. March 11, 1971.)
§ 607. Time-shares; right to cancel
(a) For the purposes of this section a “time-share” means an interest in a project involving
real property acquired by means of a time-share estate or a time-share license. A
“time-share estate” is a right to occupy a unit or any of several units during separated
time periods coupled with a freehold estate or an estate for years in a time-share
property or a specified portion thereof. A “time-share license” means a right to
occupy a unit or any of several units including renewal options, not coupled with
a freehold estate or an estate for years.
(b) A purchaser of a time-share shall have a right to cancel a contract of sale for five
days after executing the contract. This right to cancel may not be waived.
(c) If a purchaser elects to cancel a contract pursuant to subsection (b) of this section,
he or she may do so by written notice hand-delivered to the seller or mailed to the
developer or to his or her agent for service of process. If mailed, written notice
shall be by certified mail and shall be dated on or before the fifth day. Cancellation
is without penalty, and all payments made by the purchaser before cancellation must
be refunded within 15 days after receipt of the notice of cancellation.
(d) A contract for the sale of a time-share shall include in a size equal to at least
10-point bold type the language set forth in subsections (b) and (c) of this section.
A contract violating this subsection shall be unenforceable. (Added 1983, No. 103 (Adj. Sess.), eff. April 1, 1984.)
§ 608. [Reserved for future use.]
§ 609. Conveyance of standing timber
If standing timber is conveyed by deed or other instrument, with a clause limiting
the time for removal, title to any uncut timber remaining on the land at the expiration
of the time for removal shall revert to the owner of the fee. (Added 1985, No. 259 (Adj. Sess.), § 2.)
§ 610. Housing subsidy covenants; enforceability
(a) Definition. As used in this section, “housing subsidy covenant” means a covenant the purpose of
which is to encourage the development and continued availability of affordable rental
and owner-occupied housing for low and moderate income persons. A housing subsidy
covenant may be created during ownership or at the time of conveyance by the owner
of real property as a condition of:
(1) an allocation of “low income housing tax credits” pursuant to regulations of the Agency
of Commerce and Community Development;
(2) a grant, loan, or contract made by an agency, instrumentality, or political subdivision
of this State;
(3) a grant, loan, or contract made by a nonprofit corporation;
(4) a subsidized loan from any lending institution that makes loans for residential housing;
or
(5) a subsidized private transaction.
(b) Restrictions. A housing subsidy covenant may include without limitation restrictions on the use
of real property, restrictions on resale price, restrictions on tenant income and
rents, and restrictions on the income of a purchaser of housing or a housing unit
for his or her own residence.
(c) Requirements. A housing subsidy covenant shall be set forth in a separate and distinct document
and executed, acknowledged, and recorded in the manner provided by law for the execution,
acknowledgment, and recording of deeds.
(d) Duration. A housing subsidy covenant may be perpetual or may be limited to a period of time
specified in the document and may be amended or terminated by written agreement of
the owner of the land and all persons or entities holding the right to enforce the
covenant. Any amendment or termination shall be executed, acknowledged, and recorded
as provided in this section.
(e) Enforceability. A covenant that complies with this section shall run with the land and shall be enforceable
according to its terms. The covenant may include provisions for monitoring and enforcing
compliance. The covenant may be enforced by the person or entity that provided the
subsidy of which creation of the covenant was a condition, or by any agency, instrumentality,
or political subdivision of the State or nonprofit corporation organized for the purpose
of promoting affordable housing to whom the right of enforcement has been assigned. (Added 1989, No. 91, § 1; amended 1995, No. 190 (Adj. Sess.), § 1(a).)
§ 611. Remediation certificates
A remediation certificate issued under the provisions of 18 V.S.A. § 1221a, and duly recorded under the provisions of 18 V.S.A. § 1221b, shall correct any title deficiencies under this subchapter that were caused by the
absence of a subdivision permit required under the provisions of 18 V.S.A. chapter
23. (Added 1993, No. 187 (Adj. Sess.), § 4, eff. Sept. 1, 1994.)
§ 612. Municipal permits
(a) Notwithstanding the majority decision in Bianchi v. Lorenz (1997), for land development, as defined in 24 V.S.A. § 4303(10), no encumbrance on record title to real estate or effect on marketability shall be
created by the failure to obtain or comply with the terms or conditions of any required
municipal land use permit as defined in 24 V.S.A. § 4303(11).
(b) A purchaser shall have the right to terminate a binding contract for the sale of real
estate if, prior to closing, the purchaser determines and gives written notice to
the seller that land development has occurred on the real estate without a required
municipal land use permit or in violation of an existing municipal land use permit.
Following the receipt of written notice, the seller shall have 30 days, unless the
parties agree to a shorter or longer period, either to obtain the required municipal
land use permits or to comply with existing municipal land use permits. If the seller
does not obtain the required municipal land use permits or comply with existing municipal
land use permits, the purchaser may terminate the contract if, as an owner or occupant
of the real estate, the purchaser may be subject to an enforcement action under 24 V.S.A. § 4454. (Added 1997, No. 125 (Adj. Sess.), § 5, eff. April 27, 1998; amended 1999, No. 46, § 8, eff. May 26, 1999; 2009, No. 93 (Adj. Sess.), § 4; 2011, No. 102 (Adj. Sess.), § 5, eff. May 5, 2012.)
§ 613. Repealed. 2011, No. 91 (Adj. Sess.), § 3.
§ 614. Transfer of stormwater discharge permits to a municipality
(a) The failure of the residential subdivision to obtain, renew, or comply with the terms
of a pretransition stormwater discharge permit shall not create an encumbrance on
record title to real property within the residential subdivision or affect marketability
of title of real property within the residential subdivision, provided that:
(1) The residential subdivision transfers a pretransition stormwater permit to a municipality
according to the requirements of 10 V.S.A. § 1264(i);
(2) Property owners within the residential subdivision record in the land records:
(A) the deed or other legal document of conveyance of the stormwater system to the utility;
and
(B) a notice indicating that the stormwater utility has assumed responsibility for the
permitting of the stormwater system located in the residential subdivision.
(b) The definitions found in 10 V.S.A. § 1264 and subsection 613(a) of this title apply to this section unless otherwise indicated. For the purposes of this section,
“residential subdivision” means land identified and demarcated by recorded plat or
other device that a municipality has authorized to be used primarily for residential
construction. (Added 2007, No. 130 (Adj. Sess.), § 6, eff. May 12, 2008.)
§ 615. Wetland permit
No encumbrance on record title to real estate or effect on marketability shall be
created by failure to obtain or comply with a permit of the Secretary of Natural Resources
pursuant to 10 V.S.A. chapter 37. (Added 2009, No. 31, § 10.)
§ 616. Groundwater source testing; disclosure of informational material
(a) Disclosure of potable water supply informational material. For a contract for the conveyance of real property with a potable water supply, as
that term is defined in 10 V.S.A. § 1972(6), that is not served by a public water system, as that term is defined in 10 V.S.A. § 1671(5), executed on or after January 1, 2013, the seller shall, within 72 hours of the execution,
provide the buyer with informational materials developed by the Department of Health
regarding:
(1) the potential health effects of the consumption of contaminated groundwater; and
(2) the availability of test kits provided by the Department of Health.
(b) Marketability of title. Noncompliance with the requirements of this section shall not affect the marketability
of title of a property.
(c) Penalty; liability. Liability for failure to provide the informational materials required by this section
shall be limited to a civil penalty, imposed by the Department of Health under 18 V.S.A. chapter 3, of no less than $25.00 and no more than $250.00 for each violation. (Added 2011, No. 163 (Adj. Sess.), § 4, eff. Jan. 1, 2013.)
§ 617. Disclosure of class 4 road
(a) Disclosure of maintenance on class 4 highway. Any property owner who sells property located on a class 4 highway or legal trail
shall disclose to the buyer that the municipality is not required to maintain the
highway or trail as described in 19 V.S.A. § 310.
(b) Marketability of title. Noncompliance with the requirements of this section shall not affect the marketability
of title of a property. (Added 2023, No. 47, § 21, eff. July 1, 2023.)
-
Subchapter 008: UNIFORM REAL PROPERTY ELECTRONIC RECORDING ACT
§ 621. Short title
This subchapter may be cited as the Uniform Real Property Electronic Recording Act. (Added 2021, No. 171 (Adj. Sess.), § 2, eff. July 1, 2022.)
§ 622. Definitions
For the purposes of this subchapter:
(1) “Document” means information that is:
(A) inscribed on a tangible medium or that is stored in an electronic or other medium
and is retrievable in perceivable form; and
(B) eligible to be recorded in the land records maintained by the recorder.
(2) “Electronic” means relating to technology having electrical, digital, magnetic, wireless,
optical, electromagnetic, or similar capabilities.
(3) “Electronic document” means a document that is received by the recorder in an electronic
form.
(4) “Electronic signature” means an electronic sound, symbol, or process attached to or
logically associated with a document and executed or adopted by a person with the
intent to sign the document.
(5) “Person” means an individual; corporation; business trust; estate; trust; partnership;
limited liability company; association; joint venture; public corporation; government;
governmental subdivision, agency, or instrumentality; or any other legal or commercial
entity.
(6) “Recorder” means a town clerk, pursuant to 24 V.S.A. § 1154, or a county clerk, pursuant to subchapter 3 of this chapter, responsible for recording
deeds and other instruments or evidences respecting real estate.
(7) “State” means a state of the United States, the District of Columbia, Puerto Rico,
the U.S. Virgin Islands, or any territory or insular possession subject to the jurisdiction
of the United States. (Added 2021, No. 171 (Adj. Sess.), § 2, eff. July 1, 2022.)
§ 623. Validity of electronic documents
(a) If a law requires, as a condition for recording, that a document be an original, be
on paper or another tangible medium, or be in writing, the requirement is satisfied
by an electronic document satisfying this subchapter.
(b) If a law requires, as a condition for recording, that a document be signed, the requirement
is satisfied by an electronic signature.
(c) A requirement that a document or a signature associated with a document be notarized,
acknowledged, verified, witnessed, or made under oath is satisfied if the electronic
signature of the person authorized to perform that act, and all other information
required to be included, is attached to or logically associated with the document
or signature. A physical or electronic image of a stamp, impression, or seal need
not accompany an electronic signature. (Added 2021, No. 171 (Adj. Sess.), § 2, eff. July 1, 2022.)
§ 624. Recording of documents
(a) In this section, “paper document” means a document that is received by the recorder
in a form that is not electronic.
(b) A recorder:
(1) who implements any of the functions listed in this section shall do so in compliance
with the most recent standards and best practices;
(2) may receive, index, store, transmit, and preserve electronic documents;
(3) may provide for access to, and for search and retrieval of, documents and information
by electronic means;
(4) who accepts electronic documents for recording shall continue to accept paper documents
as authorized by State law and shall place entries for both types of documents in
the same index;
(5) may convert paper documents accepted for recording into electronic form;
(6) may convert into electronic form information recorded before the recorder began to
record electronic documents;
(7) may accept electronically any fee the recorder is authorized to collect; and
(8) may agree with other officials of this State or a political subdivision thereof, or
of the United States, on procedures or processes to facilitate the electronic satisfaction
of prior approvals and conditions precedent to recording and the electronic payment
of fees. (Added 2021, No. 171 (Adj. Sess.), § 2, eff. July 1, 2022.)
§ 625. Standards and best practices
To ensure consistency in the standards and best practices of, and the technologies
used by, recorders in this State, all recordings of deeds and other instruments or
evidences respecting real estate, regardless of format, shall comply with standards
and best practices issued by the Vermont State Archives and Records Administration
pursuant to 3 V.S.A. § 117. Recorders shall seek services from the Vermont State Archives and Records Administration
to comply with the standards and best practices issued in accordance with this subchapter.
No provisions of this subchapter shall be implemented unless a recorder has complied
with the standards and best practices issued by the Vermont State Archives and Records
Administration in accordance with this subchapter. (Added 2021, No. 171 (Adj. Sess.), § 2, eff. July 1, 2022.)
§ 626. Relation to Electronic Signatures in Global and National Commerce Act
This subchapter modifies, limits, and supersedes the federal Electronic Signatures
in Global and National Commerce Act (15 U.S.C. § 7001, et seq.) but does not modify, limit, or supersede Section 101(c) of that act (15 U.S.C. § 7001(c)) or authorize electronic delivery of any of the notices described in Section 103(b)
of that act (15 U.S.C. § 7003(b)). (Added 2021, No. 171 (Adj. Sess.), § 2, eff. July 1, 2022.)