Page 49 - State Law Summary of Mechanic's Lien Law

Vermont VT

What is the statutory authority?
9 V.S.A. § 1921 et. seq.
What is the Attachment Date of the Mechanic’s Lien?
Liens attach as of the date of visible commencement of work or delivery of material
to the property. 9 V.S.A. § 1923.

What constitutes visible commencement of construction?
The moment a contractor commences “visible” work or supplies materials to real
property. In re APC Const., Inc., 1990, 112 B.R. 89, affirmed 132 B.R. 690.
What is the priority of the insured construction mortgage/
deed of trust?
A deed or other conveyance, including a mortgage, has priority over a mechanic’s
lien if the deed, other conveyance or mortgage is recorded before visible
commencement of work or delivery of materials or before the claimant records
a claim of lien.
If a mortgage securing construction or improvements is recorded before a
mechanic’s lien is filed, the mortgage takes priority. However, if the lender receives
written notice that a lien will be claimed, then any mortgage advances made after
that notice are subordinate to the mechanic’s lien—except for advances used to
complete the improvements. 9 V.S.A. § 1921(d).
If priority of the insured mortgage/deed of trust is lost, is there a
statutory procedure to regain priority?
No.

When does a mechanic’s lien have to be filed for claimant to maintain
lien rights?
A mechanic’s lien shall not continue in force for more than 180 days from the time
when payment became due for the last of such labor performed or materials
furnished unless a notice of such lien is filed in the office of the town clerk. 9 V.S.A.
§ 1921(c).

What is the period of enforcement of a filed mechanic’s lien?
A mechanic’s lien claimant must file an enforcement action within 180 days of
filing the lien if payment was due at that time, or within 180 days after payment
becomes due if it was not due when the lien was filed. 9 V.S.A. § 1924

Is there a procedure to bond over the mechanic’s lien(s)?
No.

Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
Yes.

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