A notice of mechanic’s lien (a “Notice”) pursuant to 9 VSA Ch. 51 recorded in the land records in the name of the owner of property is effective to establish the priority of the claim described in the Notice if:
a. the claim set out in the Notice is for labor or materials supplied to the property being searched for the purpose of erecting, repairing, moving or altering improvements on the real property; and,
b. the Notice was recorded within 180 days of the date when payment is due on the contract upon which the claim is based; and,
i. The 180-day period from the later of: (i) the date the final payment for work was due; or (ii) the filing of the Notice for procuring a writ of attachment has not passed; or,
ii. There is a writ of attachment in a current civil case based on the contract identified in the Notice which is also recorded in the land records and issued within 180 days from the later of: (i) the date the final payment was due; or, (ii) the filing of the Notice.
Comment 1. An effective Notice must relate to a contract, written or oral, between the owner of real property and a person who supplies labor or materials for erecting, repairing, moving or altering improvements on the real property.
Comment 2. Applying for the attachment to perfect the mechanic’s lien alone is not sufficient to perfect the lien. Perfecting a mechanic’s lien requires that an attachment be issued in a civil proceeding by the claimant against the owner of the real property and recorded prior to 180 days from the later of: (a) the date on which the last payment is due; or, (b) the date the Notice was filed.
Comment 3. Failure to perfect the mechanic’s lien by obtaining a timely attachment does not adversely affect the underlying claim, such failure only affects the priority of the claim against other competing claims. A mechanic’s lien that is not timely perfected is no longer an encumbrance on the title.
Comment 4. There is no specific form for a Notice. Any writing which (i) identifies the person claiming the lien, (ii) the amount of the claim, (iii) the owner of the property against whom the claim is made, (iv) the property against which the claim is made and is signed by the claimant is sufficient to be deemed a Notice. 9 VSA 1923.
Comment 5. A mechanic’s lien extends only to the land owned or held by the owner who entered.
into the contract that is used or designated for use in connection with the improvements “but such lien shall not extend to other adjacent lands used for purposes of profit.” 9 VSA 1921(e).
Comment 6. The priority of the claims identified in a Notice against recorded mortgages is determined by the provisions of 9 VSA 1921(d).
Comment 7. A Notice and the related proceedings for enforcement of the underlying claim survive.
the death of the landowner and continue against the personal representatives of the landowner. 9 VSA 1926.
Comment 8. A person (subcontractor) who supplies materials or labor for erecting, repairing, moving or altering an improvement on property to a contractor or subcontractor may claim a lien on the improvements and land on which the improvements stand to secure the payment for such labor and materials. A subcontractor claim for a lien follows the same process and procedure.
Comment 9. When the amount of competing claims exceeds the amount due from the landowner to the contractor, the competing claims are paid pro-rata.
Comment 10. A subcontractor’s claim secured by a mechanic’s lien is limited to the amount due the contractor from the owner of the property. Cote v Bloomfield, 128 VT 306, 262 A.2d 467 (1970).
Comment 11. Due diligence suggests that a title examiner who discovers a Notice in the land records that recently expired exercise discretion and investigate the status of any pending litigation related to the contractor’s or subcontractor’s claim.
History
September 2026: Standard Added.
