Vermont § 464 - Liability of mortgagee for failure to provide payoff statements and refusal to discharge

Full text of Vermont Vermont Statutes Online § 464 — Liability of mortgagee for failure to provide payoff statements and refusal to discharge, with citation guidance and answers to common questions.

§ 464. Liability of mortgagee for failure to provide payoff statements and refusal to discharge

  • (a) Within five business days after the mortgagee’s receipt of a written request for a
    statement of the amount of funds or other obligations required to satisfy a note or
    other obligation secured by a mortgage, the mortgagee shall provide a written payoff
    statement to the mortgagor. The mortgagee shall not impose a fee or other charge for
    providing the payoff statement, unless the request specifically asks for expedited
    service. A request for a payoff statement shall include the name of the mortgagor,
    the loan number assigned to the loan, and the address of the property securing the
    loan. If a written payoff statement is not deposited in the U.S. mail, delivered to
    a courier service, sent by facsimile, or sent by other method of service customarily
    used for delivery of messages, within five business days after receiving the request,
    the holder and any servicer shall be jointly and severally liable to any aggrieved
    party in a civil action for statutory damages equal to $25.00 per day after the expiration
    of the five business days, up to an aggregate maximum of $5,000.00 for all aggrieved
    parties; provided, however, any servicer not authorized to issue a payoff statement
    shall not be liable as set forth in this subsection. (b) Within 30 days after full performance of the conditions of the mortgage, the mortgagee
    of record shall execute and deliver a valid and complete discharge as provided in
    sections 461-463 of this title, together with any instrument necessary to establish the mortgagee’s record ownership
    of the mortgage and to establish the authority to execute the discharge. As used in
    this section, the term “mortgagee” shall mean both the holder of the mortgage at the
    time it is satisfied and any servicer who receives the final payment satisfying the
    debt. If a discharge is not executed and delivered within 30 days, the holder and
    any servicer shall be jointly and severally liable to any aggrieved party in a civil
    action for statutory damages equal to $25.00 per day after the expiration of the 30
    days, up to an aggregate maximum of $5,000.00 for all aggrieved parties; provided,
    however, any servicer not authorized to execute such discharge shall not be liable
    as set forth in this subsection. With respect to a mortgagee securing an open-end
    line of credit, the 30-day period to deliver a discharge commences after the mortgagor
    delivers to the address designated for payments under the line of credit a written
    request to terminate the line of credit and mortgage, together with payment in full
    of all amounts secured by the mortgage. (c) The aggrieved party may file an action under subsection (a) or (b) of this section
    in Superior Court or, if the action is for monetary damages only and if the ad damnum
    requested is equal to or less than the maximum jurisdiction of a small claims proceeding,
    the complaint may be filed as a small claims action. (d) In addition to any statutory damages, the mortgagee shall also be liable for consequential
    damages, punitive damages, court costs, and reasonable attorney’s fees to any aggrieved
    party who substantially prevails in an action under this section. An aggrieved party
    may file an action to recover such damages, costs, and fees in Superior Court. The
    court shall equitably allocate punitive damages among multiple aggrieved parties and
    may grant such other relief as the court deems appropriate. (Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1999, No. 105 (Adj. Sess.), § 1; 2023, No. 6, § 334, eff. July 1, 2023.)

Source: official Vermont text · Last verified 2026-08-27

Frequently Asked Questions About Vermont § 464

What does Vermont Statutes Online § 464 cover?

Section 464 ("Liability of mortgagee for failure to provide payoff statements and refusal to discharge") is part of the Vermont Statutes Online, the codified statutory law of Vermont. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Vermont § 464?

A common citation format is "Vermont Statutes Online § 464" (Vermont). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Vermont law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Vermont official source linked on this page or consult a licensed Vermont attorney.

How does Vermont § 464 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Vermont can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in Vermont.