Mortgages

V.S.A. tit. 27, ch. 5, subch. 4

in effect

27 V.S.A. § 441 Manner of mortgaging machinery

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.

27 V.S.A. § 442 Attachment and sale of machinery mortgaged with 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.

27 V.S.A. § 461 By entry on record

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.

27 V.S.A. § 462 By acknowledgment of payment

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.

27 V.S.A. § 463 By separate instrument

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.

27 V.S.A. § 464 Liability of mortgagee for failure to provide payoff statements and refusal to discharge

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.

27 V.S.A. § 464a Discharge by licensed attorney

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.

27 V.S.A. § 465 When mortgagee dead

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.

27 V.S.A. § 466 Notice to parties

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.

27 V.S.A. § 467 When death of mortgagee not established

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.

27 V.S.A. § 468 Manner of Discharge by Trustee or Administrator

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.

27 V.S.A. § 469 Mortgagee corporation whose charter has expired

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.

27 V.S.A. § 470 Validation of mortgage discharge on one- to four-family residential property

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.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/27/005Fetched: 10/21/2026