Vermont Attorneys Title Corporation

• Vermont Title Standards Index ›

  • 1.1 The Role of the Examining Attorney
  • 1.2 The Examining Attorney's Attitude
  • 1.3 Definition of Marketable Title
  • 1.4 Reference to Title Standards in Real Estate Sales Contract
  • 2.1 Period of Search
  • 2.2 The Concept of the Chain of Title and its Relationship of the Rule of Record Notice and the Scope of the Title Searcher's Obligation
  • 2.3 Effect of Recording Instruments Claiming an Interest in Real Estate
  • 2.4 Wild Instruments: Instruments by Strangers to the Record Chain of Title
  • 2.4A After Acquired Property
  • 2.5 Priority of Conveyances
  • 2.6 Time When a Conveyance is Considered as Properly "Recorded"
  • 2.7 Record of Expired Leases or Expired Interests
  • 4.1 Limitation on the Use by Grantor of Corrective Deeds
  • 6.1 Grantors
  • 6.2 Majority
  • 6.3 Mental Capacity
  • 6.4 Marital Interests
  • 6.5 Powers of Attorney
  • 7.1 Grantees
  • 8.1 Name Variances
  • 9.1 Execution, Witnessing and Acknowledgement
  • 11.1 Delivery
  • 13.1 Conveyance by Heirs' Deed
  • 13.2 Conveyance by Devisees in Lieu of Probate Administration
  • 13.3 Omitted Real Estate or Faulty Description of Closed Estate
  • 13.4 Conveyance by Trustee of a Non-Probate Trust
  • 14.1 Conveyance to Two or More Persons
  • 18.1 Federal Special Gift Tax Lien
  • 18.2 Irregularities and Discrepancies in Discharges of Mortgage and other Documents
  • 18.3 Discharges of Corrected, Re-Recorded, or Modified Mortgages
  • 18.4 Effect of Failure to Discharge Assignments of Leases and/or Rent, Riders or Financing Statements
  • 18.5 Discharges Involving Mortgage Electronic Registration System (MERS)
  • 20.1 Presumptions Applicable to Corporate Conveyances
  • 22.1 Limited Liability Companies
  • 23.1 Federal General Tax Lien
  • 24.1 Federal Special Estate Tax Lien
  • 25.1 Federal Gift Tax Lien
  • 27.1 Vermont Estate Tax Lien
  • 28.1 Establishing Marketable Title To Interests In Real Property Owned By Failed Financial Institutions
  • 28.2 Title of the Receiver of a Failed Financial Institution to the Assets of That Institution
  • 28.3 Title of the Immediate Transferee of the Receiver of a Failed Financial Institution
  • 28.4 Marketability of Title In a Real Estate Interest of a Failed Financial Institution for Which No Conveyance, Transfer or Assignment Appears of Record Prior to the Dissolution of the Bridge Institution Which Had Continued The Business of the Failed Institution
  • 28.5 Discharges, Partial Releases, Assignments and Foreclosure of Mortgages of a Failed Institution By a Transferee of the Receiver For Such Failed Institution

STANDARD 18.4

EFFECT OF FAILURE TO DISCHARGE ASSIGNMENTS OF LEASES AND/OR RENT, RIDERS OR FINANCING STATEMENTS

Failure to separately discharge an assignment of leases and/or rents, a financing statement or a rider to a mortgage does not impair marketability if, from the record, it can be determined or inferred with reasonable certainty that the assignment, financing statement or rider was given as additional security for an obligation secured by a mortgage which has been discharged of record.

Comment 1. Notwithstanding the foregoing standard, it is good practice to insert in an
assignment of leases and/or rents a provision that the discharge of the mortgage securing the obligation for which the assignment is also security shall operate as a discharge of that assignment.

Comment 2.  9A VSA §9-515 provides that, except as otherwise provided in subsections (b), (e), (f), and (g), a filed financing statement is effective for a period of five years after the date of filing.  Thus, the provisions of this Standard relating to financing statements become inapplicable  if the financing statement at issue has been terminated as a matter of law..  The exception described in (g) states: “A record of a mortgage that is effective as a financing statement filed as a fixture filing under section 9 - 502(c) remains effective as a financing statement filed as a fixture filing until the mortgage is discharged or satisfied of record or its effectiveness otherwise terminates as to the real property.”

Comment 3.  On occasion, a mortgage may have been assigned to a subsequent holder, but a collateral assignment of leases and/or rents regarding the loan was not similarly assigned.  Despite the different ownership of the mortgage and the assignment, this standard still applies; a discharge of only the mortgage will discharge the assignment.

History

September 26, 2008 This standard was added.

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