Escrow & Title

In Vermont, a 'notice of lis pendens' that is recorded but the underlying lawsuit is dismissed should be:

ALeft in the records as a historical matter
BReleased (discharged) by recording a notice of withdrawal to clear it from the title✓ Correct
CAutomatically removed by the court after 90 days
DKept in place as notice of potential future litigation

Explanation

When the underlying lawsuit is dismissed or resolved, the lis pendens should be discharged by recording a notice of withdrawal at the town clerk's office. Failure to discharge a resolved lis pendens creates a cloud on title that can interfere with future sales or financing.

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