Agreement or Contract for Deed for Sale and Purchase of Real Estate a/k/a Land or Executory Contract
VERMONT STATUTES
TITLE TWENTY-SEVEN PROPERTY
CHAPTER 5: CONVEYANCE OF REAL ESTATE
SUBCHAPTER 1. MANNER OF CONVEYING INTERESTS IN OR AFFECTING REALTY
27 V.S.A. § 301. Manner of conveying
Conveyance of land or of an estate or interest therein may be made by deed executed by a person having authority to convey the same, or by his or her attorney, and acknowledged and recorded as provided in this chapter.
§ 302. Effect of oral conveyance
Estates or interests in lands, created or conveyed without an instrument in writing shall have the effect of estates at will only. An estate or interest in lands shall not be assigned, granted, or surrendered unless by operation of law or by a writing signed by the grantor or his or her attorney.
§ 303. Trusts concerning realty
A trust concerning lands, excepting such as may arise or result by implication of law, shall not be created or declared, unless by an instrument in writing signed by the party creating or declaring the same, or by his or her attorney.
§ 304. Assignment of lease to be by deed
The assignment of a lease of lands, if the lease is for a longer term than one year, shall be by deed, signed, sealed, witnessed, acknowledged, and recorded as provided for deeds in this chapter. An assignment otherwise executed shall be void as against all persons but the assignor, his or her heirs, or his or her devisees.
§ 305. Conveyances effected through power of attorney
(a) A deed or other conveyance of lands or of an estate or interest therein, made by virtue of a power of attorney, shall not be of any effect or admissible in evidence, unless such power of attorney is signed, witnessed by one or more witnesses, acknowledged, and recorded in the office where such deed is required to be recorded.
(b) Nothing in subsection (a) of this section shall limit the enforceability of a power of attorney which is executed in another state or jurisdiction in compliance with the law of that state or jurisdiction. This subsection shall apply retroactively, except that it shall not affect a suit begun or pending as of July 1, 2010. (Amended 1973, No. 211 (Adj. Sess.); 1995, No. 6, § 1, eff. March 15, 1995; 2009, No. 132 (Adj. Sess.), § 6, eff. May 29, 2010.)
§ 306. Evidence
When a deed is made by virtue of a power of attorney thus executed and recorded, a certified copy of the record of such power of attorney may be read in evidence when the original cannot be produced.
§ 307. Vendor's liens
The vendor of real estate shall not have a lien thereon for unpaid purchase money, except such lien as is created and evidenced by deed executed, acknowledged and recorded as deeds of conveyance of real estate.
VERMONT STATUTES
TITLE TWENTY-SEVEN PROPERTY
CHAPTER 5: CONVEYANCE OF REAL ESTATE
SUBCHAPTER 2. EXECUTION AND ACKNOWLEDGMENT
ARTICLE 1. REQUIREMENTS
27 V.S.A. § 341. Requirements generally; recording
(a) Deeds and other conveyances of lands, or of an estate or interest therein, shall be signed by the party granting the same and acknowledged by the grantor before a town clerk, notary public, master, county clerk, or judge or register of probate and recorded at length in the clerk's office of the town in which such lands lie. Such acknowledgement before a notary public shall be valid without an official seal being affixed to his or her signature.
(b) A deed or other conveyance of land which includes a reference to a survey prepared or revised after July 1, 1988 may be recorded only if it is accompanied by the survey to which it refers, or cites the volume and page in the land records showing where the survey has previously been recorded.
(c) A lease of real property that has a term of more than one year from the making of the lease need not be recorded at length if a notice or memorandum of lease, which is executed, witnessed, and acknowledged as provided in subsection (a) of this section, is recorded in the land records of the town in which the leased property is situated. The notice of lease shall contain at least the following information:
(1) the names of the parties to the lease as set forth in the lease;
(2) a statement of the rights of a party to extend or renew the lease;
(3) any addresses set forth in the lease as those of the parties;
(4) the date of the execution of the lease;
(5) the term of the lease, the date of commencement, and the date of termination;
(6) a description of the real property as set forth in the lease;
(7) a statement of the rights of a party to purchase the real property or exercise a right of first refusal with respect thereto;
(8) a statement of any restrictions on assignment of the lease; and
(9) the location of an original lease. (Amended 1967, No. 231 (Adj. Sess.), § 1, eff. Jan. 24, 1968; 1973, No. 249 (Adj. Sess.), § 84, eff. April 9, 1974; 1987, No. 220 (Adj. Sess.); 1993, No. 174 (Adj. Sess.), § 1; 1997, No. 86 (Adj. Sess.), § 1; 2003, No. 150 (Adj. Sess.), § 5.)
§ 342. Acknowledgment and recording required
A deed of bargain and sale, a mortgage or other conveyance of land in fee simple or for term of life, or a lease for more than one year from the making thereof shall not be effectual to hold such lands against any person but the grantor and his or her heirs, unless the deed or other conveyance is acknowledged and recorded as provided in this chapter.
§ 343. Conveyance of wife's real estate
A husband and wife, by their joint deed, may convey the real estate of the wife as she might do by her separate deed if unmarried.
§ 344. Conveyances of joint interests when husband under disability
The wife of a man under guardianship may join with the guardian in making partition of her real estate held in joint tenancy or in common and, with the guardian, may jointly make a release or other conveyance for that purpose, as she might have done with her husband if he had not been under legal disability.
§ 345. Conveyances of wife's realty in which disabled husband has an interest
When the guardian of a married man is licensed to sell the interests of the ward in any real estate of his wife, the wife may join with the guardian in the conveyance and convey her estate and interest in the granted premises as she might have done with her husband if he had not been under legal disability, but this section shall not authorize the conveyance of the ward's estate of homestead.
§ 346. Conveyances by corporation
A public or private corporation authorized to hold real estate may convey the same by an agent appointed by vote for that purpose.
§ 347. Validity of deeds executed under prior law
Deeds of bargain and sale, mortgages or other conveyances of real estate, heretofore made and executed according to former laws and usages in this state, shall be valid and effectual.
§ 348. Instruments concerning real property validated
(a) When an instrument of writing shall have been on record in the office of the clerk in the proper town for a period of 15 years, and there is a defect in the instrument because it omitted to state any consideration therefor or was not sealed, witnessed, acknowledged, validly acknowledged, or because a license to sell was not issued or is defective, the instrument shall, from and after the expiration of 15 years from the filing thereof for record, be valid. Nothing herein shall be construed to affect any rights acquired by grantees, assignees or encumbrancers under the instruments described in the preceding sentence, nor shall this section apply to conveyances or other instruments of writing, the validity of which is brought in question in any suit now pending in any courts of the state.<br />
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(b) Notwithstanding subsection (a) of this section, any deed, mortgage, lease, power of attorney, release, discharge, assignment, or other instrument made for the purpose of conveying, leasing, mortgaging, or affecting any interest in real property which contains any one or more of the following errors is valid unless, within three years after the instrument is recorded, an action challenging its validity is commenced, and a copy of the complaint is recorded in the land records of the town where the instrument is recorded:<br />
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(1) The instrument contains a defective acknowledgment.<br />
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(2) In the case of a conveyance by a corporation, limited liability company, partnership, limited partnership, or limited liability partnership, or by any other entity authorized to hold and convey title to real property within this state, the instrument designated such entity as the grantor but was signed or acknowledged by an individual in the individual capacity of such person, or fails to disclose the authority of the individual who executes and acknowledges the instrument.<br />
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(3) The instrument contains an incorrect statement of the date of execution, or contains an execution date, or other date that is later than the date of the recording. In case of such conflict, the date of recording prevails.<br />
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(4) The instrument does not contain a statement of consideration.<br />
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(c) Notwithstanding the provisions of subsection (a) of this section, any deed, mortgage, lease, power of attorney, release, discharge, assignment, or other instrument made for the purpose of conveying, leasing, mortgaging, or affecting any interest in real property which is executed pursuant to a recorded power of attorney and contains one or more of the following errors or omissions is valid as if it had been executed without the error or omission:<br />
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(1) The instrument was executed by an attorney-in-fact but was signed or acknowledged by the attorney-in-fact without reference to his or her capacity.<br />
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(2) The instrument was executed by an attorney-in-fact but does not reference the power of attorney.<br />
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(3) The power of attorney was effective at the time the instrument was executed but is recorded after the instrument is recorded.<br />
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(d) A release, discharge, or assignment of mortgage interest executed by a commercial lender with respect to a one to four-family residential real property, including a residential unit in a condominium or in a common interest community as defined in Title 27A, which recites authority to act on behalf of the record holder of the mortgage under a power of attorney but where the power of attorney is not of record, shall have the same effect as if executed by the record holder of the mortgage unless, within three years after the instrument is recorded, an action challenging the release, discharge, or assignment is commenced and a copy of the complaint is recorded in the land records of the town where the release, discharge, or assignment is recorded. This subsection shall not apply to releases, discharges, or assignments obtained by fraud or forgery. (Added 1977, No. 79, § 1, eff. April 27, 1977; amended 2007, No. 177 (Adj. Sess.), § 2; 2009, No. 132 (Adj. Sess.), § 7, eff. May 29, 2010.)<br />
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§ 349. Conveyance to grantor and others<br />
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(a) Without an intervening conveyance a person may convey interests in real estate directly:<br />
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(1) to himself or herself in a different legal capacity; or<br />
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(2) to his or her spouse; or<br />
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(3) to himself or herself and one or more other persons, including his or her spouse. A person shall not convey an interest in a tenancy by the entirety or in homestead property to any person except his or her spouse, unless the spouse joins in the conveyance.<br />
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(b) A conveyance made pursuant to this section shall be effective to convey such title as would be conveyed by the deed if the grantor were not also a grantee. (Added 1977, No. 134 (Adj. Sess.); amended 1979, No. 160 (Adj. Sess.), § 1, eff. April 26, 1980.)<br />
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§ 350. Change in name or status of owner of real estate<br />
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Any person or corporation owning real estate or having an interest in real estate whose name has been changed, and any corporation which has been merged into or consolidated with another, may file with the town clerk of the town in which the real estate is located a certificate giving the names before and after the change, merger or consolidation, and the town clerk shall record and index the certificate in the land records. (Added 1993, No. 174 (Adj. Sess.), § 3.)<br />
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§ 351. Estates and trusts; conveyances, satisfactions, grants, and releases<br />
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(a) A conveyance or grant of an interest in real or personal property made to the estate of a decedent, to the estate of a ward, to the ward’s guardian, or to a trust, including a trust in the form of a pension or profit-sharing plan, that names the estate, the guardian, or the trust as the grantee of the interest is a valid and effective conveyance or grant to the personal representative, to the ward, or to the trustee of the trust, in like manner and effect as if the ward, or the personal representative or trustee in his or her fiduciary capacity, had been named the grantee of the conveyance or grant.<br />
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(b) A discharge, mortgage discharge, release, conveyance, grant, or satisfaction of an interest in real or personal property that is made by an estate, a guardian, or a trust described in subsection (a) of this section, that names the estate, the guardian, or the trust as the holder or grantor of the interest, and that is executed by the personal representative or trustee authorized to execute the instrument is valid in like manner and effect as if the personal representative, guardian, or trustee had been named the holder or the grantor in the instrument. (Added 2003, No. 150 (Adj. Sess.), § 3.)<br />
VERMONT CASE LAW<br />
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In every executory contract for sale of land, there is an implied condition that vendor will transfer to vendee a title unencumbered with defect, unless contract is expressly to contrary. Drew v. Bowen, 102 Vt.124 (1929)<br />
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In a land sales contract where time is of the essence, the buyer cannot compel delivery of the deed of conveyance unless payment has been tendered in time. Where time is not of the essence, the buyer who tenders payment late may bring a suit in equity, depending on the reasonableness of the delay, to compel delivery. Mouat v. Wolfe, 556 A.2d 99 (1989)
