Unconditional Waiver and Release of Claim of Lien Upon Final Payment
Note: This summary is not intended to be an all inclusive
discussion of Vermont's construction or mechanic's lien laws,
but does include basic provisions.
What is a construction or mechanic's lien?
Every State permits
a person who supplies labor or materials for a construction project to
claim a lien against the improved property. While some states differ in
their definition of improvements and some states limit lien claims to buildings
or structures, most permit the filing of a document with the local court
that puts parties interested in the property on notice that the party asserting
the lien has a claim. States differ widely in the method and time within
which a party may act on their lien. Also varying widely are the requirements
of written notices between property owners, contractors, subcontractors
and laborers, and in some cases lending institutions. As a general rule,
these statutes serve to prevent unpleasant surprises by compelling parties
who wish to assert their legal rights to put all parties who might be interested
in the property on notice of a claim or the possibility of a claim. This
by no means constitutes a complete discussion of construction lien law
and should not be interpreted as such. Parties seeking to know more about
construction laws in their State should always consult their State statutes
directly.
Who can claim a lien in this State?
When a contract or agreement
is made, whether in writing or not, for erecting, repairing, moving or
altering improvements to real property or for furnishing labor or material
therefor, the person proceeding in pursuance of such contract or agreement
shall have a lien upon such improvements and the lot of land on which the
same stand to secure the payment of the same.
A person who by virtue
of a contract or agreement, either in writing or parol, with an agent,
contractor or subcontractor of the owner thereof, performs labor or furnishes
materials for erecting, repairing, moving or altering such improvements
shall have a lien, to secure the payment of the same upon such improvements
and the lot of land upon which the same stand, by giving notice in writing
to such owner or his or her agent having charge of such property that he
or she shall claim a lien for labor or material. Such lien shall extend
to the portions of the contract price remaining unpaid at the time such
notice is received.
How long does a party have to claim a lien?
A lien herein provided
for shall not continue in force for more than one hundred and twenty days
from the time when payment became due for the last of such labor performed
or materials furnished unless a notice of such lien is filed in the office
of the town clerk as hereinafter provided.
How long is a lien good for?
Within three months from the time of filing such memorandum, if such payment is due
at the time of such filing and within three months from the time such payment
becomes due, if not due at the time of such filing, such person may commence
his action for the same, and cause such real estate or other property to
be attached thereon. If he obtains judgment in the action, the record of
such judgment shall contain a brief statement of the contract upon which
the same is founded.
Does this State require or provide for a notice from subcontractors and laborers
to property owners?
Vermont statutes
regulating mechanic's liens are very brief and contain no provision for
these type of notices.
Does this State require or provide for a notice
from the property owner to the contractor, subcontractor, or laborers?
Vermont statutes
regulating mechanic's liens are very brief and contain no provision for
these type of notices.
Does this State require a notice prior to starting
work, or after work has been completed?
No. Vermont law
does not require a notice of commencement or notice of completion as required in
some other states.
Does this State permit a person with an interest
in property to deny responsibility for improvements?
No. Vermont law does
not permit a notice of denial of responsibility for unauthorized improvements.
Is a notice attesting to the satisfaction of a
lien provided for or required?
No. Vermont statutes
do not provide for or require that a lien holder who has been paid produce
or file a notice to that effect.
