Escrow & Title
A Vermont property with a mechanic's lien recorded before the sale will result in the lien:
ABeing automatically extinguished at closing
BRunning with the land and binding the new owner unless paid off at or before closing✓ Correct
CBeing assumed by the seller's attorney
DExpiring after 90 days without action
Explanation
Mechanic's liens are encumbrances that run with the land. Unless satisfied prior to or at closing, a recorded mechanic's lien remains attached to the property and is binding on the new owner. Title companies typically require payoff of liens before insuring title.
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