§ 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.)