MECHANICS' LIEN RELEASE

State of Vermont

Pursuant to 9 V.S.A. Chapter 51

TABLE OF CONTENTS

1. Full Release of Mechanics' Lien
2. Partial Release of Mechanics' Lien
3. Release by Surety Bond
4. Demand for Release of Mechanics' Lien
5. Petition to Discharge Mechanics' Lien
6. Recording Instructions
7. Statutory Reference Table
8. Practitioner Notes

IMPORTANT VERMONT NOTE: Vermont records liens and releases at the town clerk level, not the county level. Vermont has 246 towns/cities/gores, each with its own clerk's office maintaining land records. The release must be filed with the same town clerk where the original lien was recorded.

1. FULL RELEASE OF MECHANICS' LIEN

RELEASE AND DISCHARGE OF MECHANICS' LIEN
Pursuant to 9 V.S.A. 1925

When Recorded, Return To:
[________________________________]
[________________________________]
[________________________________]

STATE OF VERMONT
[________________________________] COUNTY
TOWN/CITY OF [________________________________]

KNOW ALL PERSONS BY THESE PRESENTS:

Lien Claimant Information:

Property Owner Information:

Property Description:

Original Lien Information:

Release Declaration:

The undersigned Lien Claimant, pursuant to 9 V.S.A. 1925, for and in consideration of the sum of $[________________________________] ("Release Amount"), receipt of which is hereby acknowledged, does hereby fully, finally, and unconditionally release, satisfy, and discharge the mechanics' lien described above, recorded in the land records of the Town/City of [________________________________], Vermont.

This release constitutes a complete satisfaction of all claims secured by the above-referenced lien.

The Claimant warrants:

☐ The Claimant is the original lien claimant or authorized assignee
☐ Full payment of $[________________________________] has been received
☐ The lien has not been assigned or transferred
☐ The Claimant has authority to execute this release
☐ The Claimant will file this release with the town clerk within 10 days as required by 9 V.S.A. 1925

IN WITNESS WHEREOF, the undersigned has executed this Release on [__/__/____].

LIEN CLAIMANT:

Signature: ______________________________
Printed Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

If Claimant is an Entity:

Entity Name: [________________________________]
By: ______________________________
Name: [________________________________]
Title: [________________________________]

ACKNOWLEDGMENT

State of Vermont
County of [________________________________]

On this [____] day of [________________], 20[____], before me, a Notary Public, personally appeared [________________________________], known to me to be the person whose name is subscribed to the within instrument, and acknowledged that he/she executed the same.

Notary Public: ______________________________
Printed Name: [________________________________]
My Commission Expires: [__/__/____]

[NOTARIAL SEAL]

2. PARTIAL RELEASE OF MECHANICS' LIEN

PARTIAL RELEASE OF MECHANICS' LIEN

When Recorded, Return To:
[________________________________]
[________________________________]

STATE OF VERMONT
TOWN/CITY OF [________________________________]

Lien Claimant: [________________________________]
Property Owner: [________________________________]
Property Address: [________________________________], Vermont

Original Lien Information:

Partial Release:

The undersigned, in consideration of partial payment of $[________________________________], receipt acknowledged, hereby partially releases a portion of the mechanics' lien described above.

Lien Reduction:

The remaining lien of $[________________________________] continues in full force and effect.

Reason for Partial Release:

☐ Partial payment received
☐ Disputed portion resolved
☐ Release of specific parcel(s)
☐ Court-ordered partial release
☐ Other: [________________________________]

IN WITNESS WHEREOF, executed on [__/__/____].

Signature: ______________________________
Printed Name: [________________________________]

ACKNOWLEDGMENT

State of Vermont
County of [________________________________]

Before me personally appeared [________________________________], who acknowledged the execution of this instrument on [__/__/____].

Notary Public: ______________________________
My Commission Expires: [__/__/____]

3. RELEASE BY SURETY BOND

Petition for Release of Mechanics' Lien by Surety Bond

Pursuant to 9 V.S.A. 1926

IN THE SUPERIOR COURT OF THE STATE OF VERMONT
[________________________________] UNIT -- CIVIL DIVISION

PETITION FOR RELEASE OF MECHANICS' LIEN UPON POSTING SURETY BOND

The Petitioner respectfully represents:

1. Respondent recorded a mechanics' lien against Petitioner's property on [__/__/____] in Volume [____], Page [____], of the land records of [________________________________], Vermont.

2. The property is located at [________________________________], Vermont.

3. The lien claims $[________________________________].

4. The lien is disputed. Petitioner desires to post a surety bond to release the property from the lien pursuant to 9 V.S.A. 1926.

Bond Amount (Double the Lien Amount):

5. The surety bond is issued by [________________________________], a surety company authorized to do business in Vermont.

WHEREFORE, the Petitioner requests:

(a) Acceptance of the surety bond;
(b) An order releasing the property from the mechanics' lien;
(c) Substitution of the bond as security for the lien claim;
(d) Such other relief as the Court deems just.

______________________________
Attorney for Petitioner
[________________________________]
VT Bar No. [________________________________]

SURETY BOND FOR RELEASE OF MECHANICS' LIEN

Bond No.: [________________________________]

KNOW ALL PERSONS BY THESE PRESENTS:

That [________________________________] ("Principal") and [________________________________] ("Surety"), authorized to do business in Vermont, are held and firmly bound unto [________________________________] ("Obligee/Lien Claimant") in the sum of $[________________________________] (double the lien amount).

CONDITION:

WHEREAS, the Obligee recorded a mechanics' lien against property of the Principal; and

WHEREAS, the Principal desires to release the property by posting this bond;

NOW, THEREFORE, if the Principal satisfies any judgment in favor of the Obligee in an action on the lien claim, this bond shall be void; otherwise it remains in full force.

Principal: ______________________________
Surety: ______________________________
Date: [__/__/____]

[SURETY SEAL]

4. DEMAND FOR RELEASE OF MECHANICS' LIEN

[Owner/Attorney Letterhead]

Date: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

[________________________________]
[________________________________]
[________________________________]

RE: DEMAND FOR RELEASE OF MECHANICS' LIEN
Property: [________________________________], Town/City of [________________________________], Vermont
Lien Recording: Volume [____], Page [____], [________________________________] Town Clerk's Office
Date Recorded: [__/__/____]

Dear [________________________________]:

This is a formal demand for the immediate release of the mechanics' lien you recorded against the above-referenced property.

Basis for Demand:

☐ Full Payment Made. Payment of $[________________________________] was made on [__/__/____]. Under 9 V.S.A. 1925, you are required to file a release with the town clerk within ten (10) days of receiving full payment.

☐ Lien Has Expired Under 9 V.S.A. 1923. No foreclosure action was commenced within 180 days of recording the lien. The lien is unenforceable and must be removed from the land records.

☐ Lien Improperly Filed. The lien does not comply with 9 V.S.A. 1921 because: [________________________________]

☐ Other: [________________________________]

Legal Consequences of Failure to Release:

Under 9 V.S.A. 1925, if you fail to file a release within 10 days after the debt is satisfied, the property owner may petition the superior court for an order compelling discharge. You may be liable for costs and attorney's fees.

You are demanded to file a release with the Town Clerk of [________________________________] within ten (10) days of receipt of this letter.

Sincerely,

______________________________
[________________________________]
Phone: [________________________________]

5. PETITION TO DISCHARGE MECHANICS' LIEN

IN THE SUPERIOR COURT OF THE STATE OF VERMONT
[________________________________] UNIT -- CIVIL DIVISION

PETITION TO COMPEL DISCHARGE OF MECHANICS' LIEN

Petitioner states:

I. PARTIES

1. Petitioner owns property at [________________________________], Town/City of [________________________________], [________________________________] County, Vermont.

2. Respondent recorded a mechanics' lien against the property.

II. BACKGROUND

3. On [__/__/____], Respondent recorded a mechanics' lien in Volume [____], Page [____], of the land records of [________________________________], claiming $[________________________________].

4. Grounds for discharge:

☐ Full Payment (9 V.S.A. 1925). Petitioner paid in full ($[________________________________] on [__/__/____]). Respondent has not filed a release within 10 days as required.

☐ Expired Lien (9 V.S.A. 1923). No foreclosure action was commenced within 180 days of recording. The lien is unenforceable.

☐ Defective Lien (9 V.S.A. 1921). The lien does not comply with statutory requirements because: [________________________________]

☐ Surety Bond Filed (9 V.S.A. 1926). Petitioner has posted a surety bond equal to double the lien amount.

☐ Insufficient Notice. Lien claimant failed to provide the notice required by 9 V.S.A. 1921.

III. LEGAL BASIS

5. Under 9 V.S.A. 1925, when a lien debt is satisfied, the lienholder must file a release with the town clerk. If the lienholder fails to do so within 10 days, the property owner may petition this Court for discharge.

6. Under 9 V.S.A. 1923, if no foreclosure action is initiated within 180 days of filing, the lien becomes unenforceable.

IV. RELIEF REQUESTED

WHEREFORE, Petitioner requests:

(a) An order compelling discharge of the mechanics' lien;
(b) An order directing the Town Clerk of [________________________________] to note the discharge in the land records;
(c) Costs and attorney's fees;
(d) Such other relief as the Court deems just.

______________________________
Attorney for Petitioner
[________________________________]
VT Bar No. [________________________________]
[________________________________]
Phone: [________________________________]

VERIFICATION

I, [________________________________], declare under penalty of perjury that the foregoing is true and correct.

______________________________
Petitioner
Date: [__/__/____]

6. RECORDING INSTRUCTIONS

Vermont Lien Release Recording Guide

Recording Office: Town/City Clerk's Office

Vermont records land documents at the town or city level, not the county level. Vermont has 246 municipalities (237 towns, 9 cities, plus a few gores and grants), each maintaining its own land records. The release must be filed with the same town/city clerk where the original lien was recorded.

Vermont Counties and Major Towns/Cities:

Recording Requirements:

☐ Original signed release document
☐ Notarized acknowledgment
☐ Recording fee (verify with town/city clerk)
☐ Reference to original lien recording (Volume/Page)
☐ Property description consistent with original lien
☐ SPAN number if available
☐ Return address

10-Day Filing Requirement (9 V.S.A. 1925):
The lien claimant is required to file a release with the town clerk within 10 days of the debt being satisfied. Failure to do so entitles the property owner to petition the court for an order of discharge.

7. STATUTORY REFERENCE TABLE

Vermont Mechanics' Lien Statutes and Deadlines

Key Deadlines Summary

Penalties and Consequences

8. PRACTITIONER NOTES

Vermont-Specific Considerations

Town-Based Recording System:
Like Rhode Island, Vermont records land documents at the town/city level rather than the county level. This is critical -- a release must be filed with the same town clerk where the original lien was recorded. Vermont has 246 municipalities, and recording practices can vary between offices.

10-Day Release Requirement (9 V.S.A. 1925):
Vermont is one of few states with a specific statutory deadline for the lien claimant to file a release after the debt is satisfied. The lienholder must file a release with the town clerk within 10 days. If the lienholder fails to do so, the property owner can petition the superior court for an order compelling discharge. This provision gives property owners significant leverage.

180-Day Foreclosure Deadline (9 V.S.A. 1923):
A mechanics' lien becomes unenforceable if no foreclosure action is commenced within 180 days of recording. This is a strict deadline. If the deadline has passed, the property owner may request removal from the land records, either by demand to the lien claimant or by court petition.

Surety Bond -- Double the Lien Amount:
Under 9 V.S.A. 1926, a property owner may post a surety bond equal to double (200%) the lien amount to release the property. This is consistent with the higher end of bond requirements nationally. The bond replaces the property as security for the lien claim.

Superior Court Jurisdiction:
Vermont's judicial reorganization consolidated trial courts into a single Superior Court system with county-based units. Mechanics' lien discharge petitions are filed in the Civil Division of the Superior Court for the county where the property is located (not the town).

Notice Requirements (9 V.S.A. 1921):
Vermont requires specific notice to the property owner before a lien can be perfected. If the lien claimant failed to provide proper notice, the lien may be invalid from inception, which simplifies the discharge process.

Volume/Page Recording System:
Most Vermont town clerks use a traditional volume/page recording system rather than a document number system. When referencing the original lien in a release, cite the specific volume and page number.

Residential Properties:
Vermont's mechanics' lien law applies to both commercial and residential properties. There are no separate residential notice requirements as in some other states, but practitioners should verify that all general notice requirements were met.

This template is provided for informational purposes only and does not constitute legal advice. Consult a qualified Vermont attorney before use. Laws and procedures are subject to change; verify all statutory citations against current law.

Last Updated: 2026-03-05