Current Use
Current Use Program Introduction and Background Revised July 2019
In 1978, the State of Vermont established the Use Value Appraisal of Agricultural, Forest, Conservation and Farm Buildings Property. Today, this program is known as “Current Use” and is administered by the Department of Taxes, Division of Property Valuation and Review.
Prior to 7/1/2019, the filing of an application in the land records constituted a lien. On 7/1/2019 legislation was enacted such that the filing of an application in the land records became a contingent lien. The law is retroactive and all Current Use applications, whenever filed, are now continent liens.
If the enrolled land is ever developed, a Land Use Change Tax is due and the State must file a Notice of Development providing the tax amount due.The tax is calculated as 10% of the fair market value of the developed parcel, or portion thereof.
Development includes any of the following:
- Subdivision so that one or more of the resulting parcels is less than 25 acres
- Construction of buildings, roads, or structures not used for forestry purposes
- Commercial mining, excavation or landfill activity, or cutting timber contrary to the management plan or contrary to state standards
If a tax becomes due, the obligation to pay the tax runs with the land. The tax is not due unless and until the land is developed; however, it may be prepaid if the landowner wishes to clear the title. Additionally, there is a payment due if/when the property is withdrawn from the Program.
If there is a Current Use application of record, for title insurance purposes, a Schedule B, Exception must be taken for: Terms and conditions of enrollment in Vermont’s Current Use program as evidenced by instrument recorded in Book , Page _.
For more information visit the State’s website or call the VATC office.
Enhanced Life Estate deeds (Lady Bird deeds)
See Vermont Title Standard 15.1
A grantor of an Enhanced Life Estate (ELE) deed who expressly reserved powers (typically the right to sell, mortgage or lease) may exercise those reserved powers without the need to obtain the consent or approval of the grantees. Example: Grantor conveys ELE deed to 3 grantees and expressly reserves the right to mortgage or sell the property. Grantor may mortgage (or sell) the property without the need to obtain consent from the 3 grantees.
However, a grantor may not exercise powers if they were not expressly reserved. Example: If an ELE deed only expressly reserves the right to sell, mortgage or lease the property, the grantor cannot gift or convey the property without consideration unless grantor obtains the consent of all grantees.
If you have questions, please call the VATC office for underwriting help.
Enhanced Life Estate Deed Act, as passed
Statutory Enhanced Life Estate Deed (Word)
Statutory Enhanced Life Estate Deed (PDF)
Leasehold Interest – Perpetual Lease/Glebe
Title/Ownership Issues:
- Determine the title interest involved. Is it fee or is it “lease or glebe” land?
Example: A deed in chain of title recites: “may be lease or glebe land, so-called”. If your parcel is lease or glebe land (or, more likely, if you can’t tell whether or not it is) lease or glebe land, conduct a more complete title search to find the original lease to determine the fee owner.
- Determine what title interest the buyer wants: Fee or Perpetual Lease/Glebe?
- Carry out client’s wishes as to ownership interest, to wit: acquire fee interest from owner or accept lease/glebe interest).
- Insure the appropriate interest. Visit the Policy Preparation page for instructions on how to prepare Leasehold commitments and policies.
- For lender’s perspective see 8 VSA § 14302 (bank) or 8 VSA § 32302 (credit union)
Leasehold Interest – Term
Examine Lease Terms:
Visit the Policy Preparation page for instructions on how to prepare Leasehold commitments and policies.
Title/Ownership Issues:
- Viability of the lease
- Is this a new lease?
- It this an assignment of lease?
- Are there multiple lease assignments with good chain of title?
- Access: Does the lease include vehicular and pedestrian access?
- Is the Lease, or a Memorandum thereof, recorded in the land records?
Powers of Attorney – Foreign
A power of attorney or similar instrument executed in a foreign jurisdiction (i.e. somewhere other than Vermont) is valid in Vermont if executed in compliance with the laws of the foreign jurisdiction (see 14 VSA §3514).
To determine the validity of a document executed in a foreign jurisdiction:
- Executed in United States : If possible, use the “Vermont form” of acknowledgement and:
- Research the laws of the State of execution to determine validity;
- Obtain a writing from an attorney admitted in the other State which provides that: the attorney is licensed in the jurisdiction; the attorney has read the instrument; and that, as drafted and executed, the POA is valid to convey real property in that jurisdiction. The writing need not be recorded; or
- Call the VATC office for underwriting assistance.
- Executed outside the United States: If possible, use the “Vermont form” of acknowledgement and:
- (a) Research the laws of the jurisdiction of execution to determine validity; (b) Have the document acknowledged; and (c) Obtain a writing from an attorney admitted in the foreign jurisdiction which provides that: the attorney is licensed in the jurisdiction; the attorney has read the instrument; and that, as drafted and executed, the POA is valid to convey real property in that jurisdiction. The writing need not be recorded; OR
- Have the document notarized at the U.S. Embassy or Consulate office as generally speaking, it will be executed correctly; OR
- Obtain an apostille. An apostille is a certification completed by a governmental authority in the other country certifying that the notarization is valid. When using an apostille, reference the Hague Convention 12 and the model apostille.
- Call the VATC office for underwriting assistance.
Powers of Attorney – Military
A Military POA is exempt from any requirement of form, substance or formality imposed by Vermont law and shall be given the same legal effect as a POA prepared and executed in Vermont. A Military POA is any general or special POA notarized in accordance with 10 USC 1044a or any state or federal law. 10 USC §1044b.
Persons who can notarize: all judge advocates; all civilian attorneys service as legal assistance attorneys; all adjutants, assistant adjutants, and personnel adjutants, including reserve members when not in a duty status; all other members of the armed forces, including reserve members when not in a duty status, who are designated by regulations of the armed forces or by statute to have those powers; for notarial acts outside the United States, all employees of a military department or the Coast Guard who are designated by regulations of the Secretary. 10 USC §1044a.
Survey and Parties in Possession Exceptions
Expanded Loan Policy: The policy does NOT contain Exceptions for Parties in Possession or Survey so there is nothing to “remove”. In fact, matters that would be disclosed by a survey are actually a Covered Risk in this policy.
However, except for Expanded Protection Loan policies, ALTA title insurance policies contain standard general Exceptions for what are known as the “Parties in Possession” and “Survey” Exceptions. These Exceptions are #2 and #3 in a Commitment and #1 and #2 in all standard final policies.
In order to REMOVE either of these Exceptions from an OWNER policy or a STANDARD LOAN policy, you must have VATC underwriting approval.
IF VATC underwriting approval is received, for assistance in preparing the policy, go to the Policy Preparation section.
Property Transfer Tax on Transfer of Controlling Interest
Effective July 1, 2019, Title 32, Section 9602 was amended so the Vermont tax on transfer of title to property includes “a transfer or acquisition of a controlling interest in any person with title to property in this State.” The definition of person under Title 32, Section 9601 includes an association, trust, corporation, partnership, limited liability company, or other legal entity. Section 9601 also defines controlling interest. If you have questions as to whether the tax has been triggered, please review the definition of controlling interest and/or call the Tax Department.
In the event the seller in a transaction is one of these business entities, VATC requires satisfactory evidence that seller has either complied with or not triggered Vermont Transfer Tax under 32 VSA Section 9602. VATC recommends satisfying this requirement including a statement to that effect in the deed. For assistance in preparing the policy, go to Policy Preparation under the Policy Training Center tab.
Questions? Please email