Vermont Mechanic's Lien Guide

A party who furnishes labor or materials under a contract with an agent, contractor, or subcontractor of the owner (rather than directly with the owner) has lien rights only after giving written notice to the owner, or the owner's agent in charge of the property, stating that a lien will be claimed for labor or material. The notice must include the date payment is due, if known (9 V.S.A. § 1921(b)). This notice is what fixes the amount secured: the lien extends only to the portions of the contract price that remain unpaid at the time the owner receives the notice. Vermont is an unpaid-balance state, so serving this notice early — before the owner pays out the contract balance — protects the amount available to your claim.

The lien will not continue in force for more than 180 days from the time payment became due for the last of the labor performed or materials furnished unless a written memorandum of lien is recorded in the town clerk's office where the property sits (9 V.S.A. §§ 1921(c), 1923). Because Vermont is an unpaid-balance state, the lien reaches only the amount the owner still owes the party you contracted with at the time your § 1921(b) notice was received. Record the memorandum well before the 180-day deadline.

You must commence a lawsuit and cause the real estate to be attached within 180 days from the time of filing the memorandum (if payment is due at the time of filing), or within 180 days from the time payment becomes due (if not yet due when filed) (9 V.S.A. § 1924). Missing this deadline dissolves the lien.