Vermont Statutes Annotated

Vt. Stat. Ann. tit. 27, § 464 (2026)

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

✓ current as of May 2026

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Subchapter 004 : MORTGAGES

(Cite as: 27 V.S.A. § 464)

§ 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.)

Notes of Decisions

Cited in 9 cases (1 in the last 5 years), 1979–2024 · leading case: R&G Props., Inc. v. Column Fin., Inc., 2008 VT 113 (Vt. 2008).

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R&G Props., Inc. v. Column Fin., Inc., 2008 VT 113 (Vt. 2008). · cites it 2× “§464, lenders’ insistence on maintaining a security interest in Eastwood when offered sale proceeds in excess of Eastwood’s internal valuation, and lenders’ reversal of position on borrower’s ability to release Eastwood months after the sale deadline for Eastwood passed.…”

Judge Dev. Corp. v. Bank of New York, 814 F. Supp. 384 (D. Vt. 1993). · cites it 5× “In Counts II and III it alleges that the Bank’s action in refusing to release the mortgage constitutes a bad faith breach of contract and a violation of 27 V.S.A. § 464 and accordingly seeks to recover damages.”

Perkins v. Factory Point Nat'l Bank, 409 A.2d 578 (Vt. 1979). · cites it 2× “This is a civil action seeking damages for failure to discharge a mortgage under 27 V.S.A. § 464, which states: After performance of the condition, either before or after the breach thereof, if a mortgagee, assignee or the executor or administrator of either, fails to execute a…”

Currier v. Huron, 2008 ME 19 (Me. 2008). “See 27 V.S.A. § 464 (2007) (providing damages in the amount of $25 per day up to aggregate amount of $5000 if not discharged within five days of request); Conn.”

Boulger v. Wells Fargo (Vt. Super. Ct. 2024). · cites it 5× “Boulger fails to state a claim under 27 V.S.A. § 464 because the mortgage has not been paid off in full.”

M&B Props. 3 Bushey Lane VT, LLC v. CWCapital Asset Mgmt. LLC (E.D.N.Y 2019). · cites it 2× “9”); (6) a violation of Title 27, Section 464 of the Vermont Statutes (“27 V.S.A. § 464”); and (7) a violation of Title 21, Section 721-6 of the Pennsylvania Statutes (“21 Pa.”

Drew v. Drew (Vt. Super. Ct. 2013). · cites it 2× “Undischarged mortgage 27 V.S.A. § 464(b) provides that “[w]ithin 30 days after full performance of the conditions of the mortgage, the mortgagee of record shall execute and deliver a valid and complete discharge .”

Town of Richmond v. Cowan (Vt. Super. Ct. 2008). · cites it 2× “Chapter 5, and provides specifically that the obligation to discharge is as provided in 27 V.S.A. § 464. A party aggrieved by a refusal to discharge may litigate that matter in superior court under 27 V.”

Finnegan v. Baker, 32 Mass. L. Rptr. 455 (Mass. Super. Ct. 2014). “Violation of 27V.S.A. §464 Back Bay Ventures No motion brought.”

— Vt. Stat. Ann. tit. 27, § 464(a) — 1 case

R&G Props., Inc. v. Column Fin., Inc., 2008 VT 113 (Vt. 2008). “§464, lenders’ insistence on maintaining a security interest in Eastwood when offered sale proceeds in excess of Eastwood’s internal valuation, and lenders’ reversal of position on borrower’s ability to release Eastwood months after the sale deadline for Eastwood passed.…”

— Vt. Stat. Ann. tit. 27, § 464(b) — 2 cases

Boulger v. Wells Fargo (Vt. Super. Ct. 2024). “Boulger fails to state a claim under 27 V.S.A. § 464 because the mortgage has not been paid off in full.”

Drew v. Drew (Vt. Super. Ct. 2013). “Undischarged mortgage 27 V.S.A. § 464(b) provides that “[w]ithin 30 days after full performance of the conditions of the mortgage, the mortgagee of record shall execute and deliver a valid and complete discharge .”

— Vt. Stat. Ann. tit. 27, § 464(c) — 1 case

Town of Richmond v. Cowan (Vt. Super. Ct. 2008). “Chapter 5, and provides specifically that the obligation to discharge is as provided in 27 V.S.A. § 464. A party aggrieved by a refusal to discharge may litigate that matter in superior court under 27 V.”

— Vt. Stat. Ann. tit. 27, § 464(d) — 1 case

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