State Library
Vermont
Mechanics' liens, recording formalities, future advances, subdivision rules, title premiums and recording taxes in Vermont, in plain English with statute cites. Last researched Oct 2026.
Title in a Minute · www.titleinaminute.com/library/states/vermont · Printed reference copy.
DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.
Vermont at a Glance
| Topic | Vermont answer | Where it comes from |
|---|---|---|
| Records | Land records are kept by the town clerk, not the county | 27 V.S.A. § 341(a); 9 V.S.A. § 1923 |
| Lien filing | Written memorandum filed with the town clerk within 180 days after payment for the last work became due; it does not beat a buyer or other grantee who paid in good faith before the lien was recorded | 9 V.S.A. §§ 1921(c), (d), 1923 |
| Enforcement | Suit and attachment within 180 days after filing (or after payment comes due) | 9 V.S.A. § 1924 |
| Construction mortgage | A construction mortgage recorded before the lien is filed wins, except advances after written notice of the lien | 9 V.S.A. § 1921(d) |
| Deed transfer tax | Property transfer tax 1.25%; principal residence 0.5% on the first $200,000; 3.4% on certain non-primary homes; plus a 0.22% clean water surcharge; buyer pays unless the parties agree otherwise | 32 V.S.A. §§ 9602, 9602a, 9604 |
| Mortgage/indebtedness tax | None | (no state statute) |
| Future advances | Committed advances date from recording up to the stated maximum; others lose priority after written notice | 27 V.S.A. § 410 |
| Attorney role | Title opinions and closings are customarily handled by Vermont attorneys; a paralegal may conduct a ministerial lender closing with client consent and the attorney available | Practice; VBA Ethics Op. 99-03 (paralegal closings) |
| Title premium regulation | Rates filed with DFR at least 30 days before they take effect; the property and casualty filing regulation covers title insurance | 8 V.S.A. § 4688(a); DFR Regulation I-2010-03 |
1. Mechanic's Lien Rules
Plain English
A Vermont contractor in contract with the owner has a lien automatically. A sub or supplier gets a lien by giving the owner written notice that it will claim one; the lien then reaches only the contract price still unpaid when the owner gets the notice. Either way, the lien ends 180 days after payment for the last work became due unless a written memorandum is filed with the town clerk. Once filed, the lien relates back to visible commencement, but it does not take priority over a deed or other conveyance to the extent the buyer paid in good faith before the lien was recorded. A lien cannot be waived before the work is done. The claimant must then sue and attach the property within 180 days. A construction mortgage recorded before the lien is filed has priority, except for advances made after the lender gets written notice of the lien (unless they actually went into the work).
Key Rules
Lien and sub notice (9 V.S.A. § 1921(a), (b)).
Filing (9 V.S.A. §§ 1921(c), 1923). 180 days; town clerk; relates to visible commencement.
Good-faith purchasers (9 V.S.A. § 1921(d)). Consideration paid in good faith before the lien is recorded is protected.
No advance waivers (9 V.S.A. § 1921(f)).
Enforcement (9 V.S.A. § 1924). Suit and attachment within 180 days.
Construction mortgage (9 V.S.A. § 1921(d)). Prior-recorded wins, except post-notice advances.
Practice Points
- Search the town clerk's land records for lien memoranda and attachments.
- Construction lenders: stop and check after any written lien notice.
- Get lien waivers for work within the last 180 days (a waiver signed before the work is done is unenforceable).
Citations
- 9 V.S.A. § 1921 (extent of lien; notice): https://legislature.vermont.gov/statutes/section/09/051/01921
- 9 V.S.A. § 1923 (recording notice of lien): https://legislature.vermont.gov/statutes/section/09/051/01923
- 9 V.S.A. § 1924 (action to enforce): https://legislature.vermont.gov/statutes/section/09/051/01924
2. Execution and Notarization Requirements for Recording
Plain English
Vermont land records are kept in each town clerk's office (27 V.S.A. § 341(a)). The property transfer tax is 1.25% of value. A buyer's principal residence pays 0.5% on the first $200,000 and 1.25% above that. Since Aug. 1, 2024, certain non-primary residential property (fit for year-round use, not the buyer's principal residence, and not a long-term rental needing a landlord certificate) pays 3.4%. A clean water surcharge of 0.22% is added, except on the first $200,000 of a principal residence (or the first $250,000 with a qualifying VHFA, USDA or homeland-grant mortgage). A property transfer tax return is filed with the deed.
Attorney role. In Vermont practice, a Vermont-licensed attorney customarily handles the title examination, title opinion or certificate, and closing documents. Under Vermont Bar Association Ethics Opinion 99-03, a paralegal may conduct a ministerial loan closing for a lender client with client consent and with the supervising attorney available.
Key Rules
- Transfer tax (32 V.S.A. § 9602). 1.25%; 0.5% on first $200,000 for principal residences; 3.4% category (§ 9602(4)).
- Clean water surcharge (32 V.S.A. § 9602a). 0.22%, with the principal-residence and assisted-mortgage exclusions.
- Attorney role (practice; VBA Ethics Op. 99-03 on paralegal closings).
Practice Points
- Confirm the buyer's use (principal residence, rental, second home); it changes the rate.
- Record with the town clerk.
- Use a Vermont attorney's title opinion and attorney-run closing.
Citations
- 32 V.S.A. § 9602 (transfer tax): https://legislature.vermont.gov/statutes/section/32/231/09602
- 32 V.S.A. § 9602a (clean water surcharge): https://legislature.vermont.gov/statutes/section/32/231/09602a
- 27 V.S.A. § 341 (recording in the town clerk's office): https://legislature.vermont.gov/statutes/section/27/005/00341
- Vermont Department of Taxes, Property Transfer Tax: https://tax.vermont.gov/property/property-transfer-tax
- VBA Ethics Opinion 99-03: https://www.vtbar.org/wp-content/uploads/2021/03/99-03.pdf
- Vermont Title Standards (VBA): https://www.vtbar.org/wp-content/uploads/2024/10/2024-Title-Standards-Final.pdf
3. Securing Future Advances
Plain English
A Vermont mortgage may secure future advances whether or not the lender is committed to make them. Advances under a commitment (including revolving lines) date from recording, up to the maximum stated in the mortgage. Optional advances keep priority only for amounts outstanding before the lender receives written notice of an intervening interest. Advances to protect the collateral (taxes, insurance, association dues, completing a contemplated improvement) keep recording-date priority even after notice.
Key Rules
- Committed advances (27 V.S.A. § 410(b)(3)(A)). Up to the stated maximum.
- Optional advances (27 V.S.A. § 410(b)(3)(B)). Cut off by written notice.
- Protective advances (27 V.S.A. § 410(b)(4)).
Practice Points
- State a maximum in every credit-line mortgage.
- Junior lenders: send written notice to the first lender.
- Homestead: committed advances don't need new spousal consent.
Citations
- 27 V.S.A. § 410 (lien priorities): https://legislature.vermont.gov/statutes/section/27/005/00410
4. Subdivision Statutes and Regulations
Plain English
Vermont subdivisions need municipal approval under 24 V.S.A. ch. 117 where the town regulates them, and larger developments may need an Act 250 permit (10 V.S.A. ch. 151). Lots generally need a state wastewater and potable water permit (10 V.S.A. ch. 64). Missing permits can affect marketability under the Vermont Title Standards.
Key Rules
- Municipal subdivision (24 V.S.A. § 4418). A municipality may regulate dividing land into two or more lots through subdivision bylaws.
- Act 250 (10 V.S.A. § 6081(a)). No one may sell an interest in a covered subdivision, or start development, without a permit.
- Wastewater permits (10 V.S.A. § 1973(a)). A state permit is needed before subdividing land or building a new structure, unless an exemption applies.
Practice Points
- Check for Act 250 and wastewater permits on every new lot.
- Read permit conditions recorded in the land records.
- Ask the attorney how permit gaps are treated under the Title Standards.
Citations
- 24 V.S.A. ch. 117: https://legislature.vermont.gov/statutes/fullchapter/24/117
- 10 V.S.A. ch. 151 (Act 250): https://legislature.vermont.gov/statutes/fullchapter/10/151
- 10 V.S.A. § 1973 (wastewater and potable water permits): https://legislature.vermont.gov/statutes/section/10/064/01973
6. Recording Taxes & Fees on Deeds and Mortgages
Plain English
Vermont's property transfer tax is owed by the buyer unless the parties agree otherwise: generally 1.25% of value, with a lower rate on the first part of a principal residence and a higher 3.4% rate on certain non-primary homes. A 0.22% clean water surcharge is added. The return goes to the town clerk with the deed (filed online through myVTax or on paper). Vermont has no mortgage tax.
Key Rules
(a) Deed transfer, conveyance or excise tax
- Rates (32 V.S.A. § 9602): 1.25% general; 0.5% on the first $200,000 of a principal residence and 1.25% above; no tax on the first $250,000 with a qualifying VHFA, USDA or homeland-grant mortgage; 3.4% on year-round non-primary homes that are not long-term rentals (§ 9602(4)).
- Clean water surcharge (32 V.S.A. § 9602a). 0.22%; not charged on the first $200,000 of a principal residence (or first $250,000 with a qualifying mortgage).
- Who pays (32 V.S.A. § 9604). The buyer (transferee), unless the parties agree otherwise.
- Controlling interests (32 V.S.A. §§ 9601(12), 9602, 9606(a)(2)). Acquiring 50% or more of an entity holding Vermont property is taxed; the return goes to the Commissioner within 30 days.
(b) Mortgage, indebtedness or intangible tax
- None. Vermont has no mortgage, indebtedness or intangible tax on recording a mortgage or deed of trust, so future advances, credit lines, refinances and modifications carry no state recording tax (only recording fees).
(c) Other recording taxes and fees
- Town clerk recording fees (32 V.S.A. § 1671(a)(6)). $15 per page; $15 to record a property transfer return.
Practice Points
- Confirm whether the buyer qualifies for the principal residence rate before closing.
- No mortgage tax on loans.
Citations
- 32 V.S.A. §§ 9601, 9602, 9602a, 9604 (property transfer tax): https://legislature.vermont.gov/statutes/fullchapter/32/231
- 32 V.S.A. § 1671 (fees): https://legislature.vermont.gov/statutes/section/32/017/01671