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

§ 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.)