Our Guide to Preliens, Waivers, Mechanic's Liens, and Bond Claims in Vermont
Vermont
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This is an overview of the state's statutory approach to lien law and what contractors might want to focus on to ensure lien rights are established timely, correctly, and effectively.
While we are happy to provide this guide as a quick reference, we HIGHLY encourage that you work with a construction attorney to help you with your particular circumstances in our complex construction lien law environment.
Vermont Quick Overview
Pursuant Code | Vt. Stat. Ann. tit. 9, §§ 1921-1925 | |
Prelien Required for Private/Commercial Projects | No, but may be beneficial | |
Prelien Required for Public Projects | No | |
VT Statutory Relief | Unpaid Balance | |
Lien Milestone Event | Conditional, check statutes | |
Lien Enforcement Deadline | 120 to 180 days | |
Waivable Lien Rights | No | |
Supplier to Supplier Rights | Condiional, check statutes | |
Prelien Document Name(s) | ||
Prelien Minimum Information | Amount due, date payment is due (if known), and description of the land. | |
Prelien Minimum Notifications | Owner | |
Prelien Recording Requirement | no | |
Prelien Notarized | no |
Understanding the Prelien Process on Construction Projects in Vermont by Role
Vermont does not require a preliminary notice to secure lien rights, but one may be optionally used to help establish priority.
Mechanic's Liens in Vermont
Vermont law allows contractors, subcontractors, and material suppliers who have furnished labor or materials for the improvement of real property to file a mechanics lien. No preliminary notice is required to establish lien rights, but a written notice of claim must be provided to the owner stating the amount due and due date. To preserve lien rights beyond 180 days from the date payment was due, a memorandum of lien must be recorded with the town clerk. A lawsuit to enforce the lien must be initiated within 180 days of filing the memorandum of lien. See 9 V.S.A. §§ 1921-1925.
Bond Claims in Vermont
There is no specific statutory bond claim process provided under Vermont law for public projects analogous to the Miller Act; therefore, contractors and suppliers on public works typically rely on contract provisions or general payment bond terms. Parties should ensure they are named beneficiaries under any posted bond and refer to the contract for notice and enforcement requirements.
Construction Lien Waivers in Vermont
Required Format: Vermont does not require any specific statutorily required verbiage to be valid but be sure to check with your constuction attorney and consult any relevant state statutes.
Required Notarization: Vermont does not require waivers to be notarized.
Vermont statutes do not prescribe standard waiver forms; waivers are governed by contract and must not violate public policy.
Learn more about waivers here, including the when and how to use various types of waivers, the difference between a Lien Waiver and a Lien Release, what to look for before signing, and more.
- As a client, you'll have free access to our system that easily creates statutorily correct lien waivers.
- Through our technology partner Prelien Pro, you can also access best-in-class lien waiver management software, allowing you to easily track, collaborate, and share lien waivers with all your trade partners.
Assessors' websites in Vermont counties
Most often, the county Assessor's office is the 'go-to' resource for finding online lien-related information for construction project parcels, including ownership records, special warranty deeds, and more. Counties that we've not yet found online (those with '*') link to a Google search for your convenience.
Other Important Construction Links in Vermont
Frequently Asked Questions (FAQs) on Vermont Lien Processes for Contractors
Do I need to send a preliminary notice to preserve lien rights in Vermont?
No, Vermont does not require a preliminary notice to preserve lien rights, but a written notice of claim must be given to the property owner to initiate lien protection.
How long do I have to file a mechanics lien in Vermont?
A lien must be recorded within 180 days from the date payment became due for the last labor or materials furnished, or it will expire unless a memorandum of lien is recorded with the town clerk.
Can I recover the full value of labor and materials under a Vermont lien?
Yes, liens in Vermont secure the full value of labor and materials furnished under the contract, as long as proper procedures are followed.
How do I enforce a Vermont mechanics lien?
You must file a civil action within 180 days from the filing of the memorandum of lien. If you win, the judgment must be recorded within 5 months to preserve it as a judgment lien.
Are there special rules for public projects in Vermont?
Vermont does not have a detailed statutory bond claim process for public projects. Claimants must rely on the terms of the payment bond posted on the project, if available.
We Set the Standard for the Construction Industry
Not only do we provide you with the tools, knowledge, and team to ensure you feel confident your rights are secured, but we're prepared for the trenches and ready to coordinate with your legal team when things "go sideways" on one of your projects.
