Escrow & Title
A Vermont property owner who grants a mortgage to a lender provides the lender with a 'lien' on the property. What happens to this lien when the mortgage is paid in full?
AThe lien remains permanently in the public record
BThe lender must record a discharge (release) of mortgage to clear the lien from title✓ Correct
CThe lien expires automatically after 30 years
DThe borrower must petition the court to remove the lien
Explanation
When a Vermont mortgage is paid in full, the lender is required to record a discharge (release) of mortgage at the town clerk's office. This document clears the mortgage lien from the public record and restores the owner's unencumbered title.
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