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Posted by / 11-May-2020 19:32

The deadline to file a Vermont mechanics lien is a little unclear.It is stated that the deadline to file a lien is 180 days from the date on which payment became due and payable for the last furnishing of labor or materials.In Vermont, an action to enforce a mechanics lien must be initiated within 180 days of the date on which the Notice of Mechanics Lien was filed.Additionally, within the same 180-day period, a prejudgment Writ of Attachment of the real estate must be obtained and recorded.The only information actually required by statute to be included on the lien is the date the payment became due and the claimant’s signature.While not required, it is best to include the legal property description or some other identification of the property, for indexing purposes.In Vermont, a Notice of Mechanics Lien must be filed with the clerk of the town in which the property is located no later than 180 days from the date on which payment became due for the last labor and/or materials furnished to the project.It is not completely clear if this 180-day time limit is from the date on which payment is due to the claimant for his last furnishing of labor and/or materials, or the date payment is due to the last party to perform work and/or furnish materials to the project.

One step alone is not sufficient, both steps are necessary. In Vermont, mechanics liens follow the general “first-in-time, first-in-right” rule.That is, any encumbrance recorded prior to the recording of the Notice of Mechanics Lien is superior to the mechanics lien, and the mechanics lien is superior to the encumbrances recorded after the recording of the Notice of Mechanics Lien. Other than the date the payment was due (if known), and the claimant’s signature, nothing is statutorily required to be included on a Vermont mechanics lien.Best practice is always to obtain a legal description, but it appears any description of the property is sufficient in Vermont.While it sounds fairly clear, there is some confusion over whether the 180 days starts from the date of which payment became due for the claimant’s last furnishing, or if the 180 days is calculated based on the date payment became due for the last party to furnish labor or materials to the project.While the deadline may be ambiguous, it may be considered best practice to file the lien within 180 days of the date payment became due for your last furnishing, rather than for the last furnishing of the project.

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Of course, a project participant can always send a purely informational preliminary notice, or a notice of intent to lien in an attempt to procure payment, and it may be a good idea to do so.

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