Lis Pendens (Notice of Pending Action) in Vermont in… | CGMIMM
Real Estate Law · VT
Lis Pendens (Notice of Pending Action) in Vermont
Vermont lis pendens — recorded notice of pending litigation affecting real property — clouds title and stops sales until resolved. Powerful but limited to specific claims about the property itself.
Published May 9, 2026
## Lis pendens in Vermont
**Lis pendens** (Latin: "suit pending") is a recorded notice that pending litigation affects specific real property. It clouds the title — preventing sale, refinance, or marketable transfer until the underlying lawsuit resolves.
## Purpose
**Lis pendens serves to:**
- Notify world of pending claims
- Bind subsequent purchasers
- Prevent transfers that would moot lawsuit
- Preserve status quo during litigation
- Protect plaintiff's potential recovery
## When lis pendens applies
**Generally limited to suits about specific property:**
- Real property at issue in lawsuit
- Title to property contested
- Specific performance of property contract
- Quiet title actions
- Foreclosure
- Partition
- Easement disputes
- Boundary disputes
- Adverse possession
- Specific marital property in divorce (sometimes)
- Constructive trust claims
- Specific lien enforcement
## When lis pendens does NOT apply
**Cannot file for unrelated claims:**
- Money damages claims (not directly tied to property)
- Personal injury claims
- Contract disputes (unless real estate)
- General creditor claims
- Tort claims
- Most divorce property division (varies)
**Filing improper lis pendens** = often "slander of title" + damages.
## Effect of lis pendens
**Constructive notice:**
- World knows about lawsuit
- Subsequent buyers take subject to outcome
- Cannot be "good-faith purchaser" against claim
- Title insurance excludes coverage
**Practical effects:**
- Title insurance won't issue clear policy
- Mortgage lenders won't fund
- Sale becomes nearly impossible
- Refinance blocked
- Property effectively frozen
## Filing process
**1. Filed with lawsuit:**
- Lis pendens notice prepared
- Filed with court
- OR recorded directly with county
**2. Recorded with county:**
- County recorder/register of deeds
- Same county as property
- Specific format requirements
- Recording fee paid
**3. Required contents:**
- Names of parties
- Nature of claim
- Property legal description
- Court + case number
- Date of filing
- Plaintiff's signature / attorney signature
**4. Service requirements:**
- Notice to property owner / parties
- Specific procedures
- ${s.name} requirements vary
## Removing lis pendens
**Multiple paths:**
**1. Voluntary release:**
- Plaintiff agrees to remove
- Specific release form
- Recorded with county
- Often part of settlement
**2. Bond / surety:**
- Defendant posts bond
- Replaces lis pendens
- Court order to release
- ${s.name} bond requirements
**3. Motion to expunge / cancel:**
- Defendant motion in lawsuit
- Court determines if claim has merit
- Specific procedures vary
- Burden often on plaintiff
**4. Judgment in defendant's favor:**
- Successful defense
- Lis pendens released by court order
- Sometimes specific notice required
**5. Voluntary dismissal of lawsuit:**
- Plaintiff drops case
- Lis pendens released
## Standards for cancellation
**Different states have different standards:**
**"Probable validity" test:**
- Plaintiff must show probable success
- More plaintiff-friendly
- Common standard
**"Real property" test:**
- Lawsuit must directly affect property
- Defendant-friendly
- Stricter limitation
**California (Code of Civil Procedure § 405.30 et seq.):**
- Specific motion procedures
- Probable validity standard
- Burden on plaintiff
**${s.name} has specific procedures.**
## Bond / surety alternatives
**Many states allow:**
- Defendant deposits bond
- Bond covers potential damages
- Lis pendens released
- Property freed for sale
- Plaintiff still has recourse if successful
**Bond amount:**
- Often based on potential damages
- Property value sometimes
- Court discretion
- Significant cost (1-5%+ of property value)
## Improper lis pendens
**"Slander of title" / "abuse of process":**
- Recording lis pendens without basis
- Filing for harassment
- Filing without honest claim
- Filing on improper claim type
**Damages available:**
- Actual damages (lost sales, etc.)
- Attorney's fees (sometimes)
- Punitive damages (egregious cases)
- Statutory penalties (some states)
- Reputational damages
**${s.name} may have:**
- Specific anti-SLAPP provisions
- Specific slander-of-title statutes
- Statutory damages
## Strategic considerations
**For plaintiffs:**
**When to file:**
- Proper claim about specific property
- Real concern about transfer
- Properly drafted lis pendens
- Legitimate basis for claim
**Risks:**
- Slander of title liability if improper
- Bond requirements
- Cancellation motion
- Reputational damage
**For defendants:**
**Options:**
- File motion to cancel/expunge
- Post bond if available
- Negotiate release
- Litigate on merits
- Counterclaim for slander of title (improper)
**Practical impact:**
- Sale impossible during pendency
- Refinance blocked
- Insurance issues
- Increased pressure to settle
## Common scenarios
**Specific performance:**
- Buyer + seller disputed contract
- Buyer sues for specific performance
- Lis pendens prevents sale to others
- Common scenario
**Quiet title / boundary:**
- Title disputes
- Boundary disputes
- Adverse possession claims
- Standard lis pendens use
**Foreclosure:**
- Lender filing
- Notifies world of pending action
- Standard pre-sale notice
**Marital property:**
- Sometimes proper in divorce
- ${s.name}-specific rules
- Limited applicability
- Risk of slander-of-title
**Construction lien enforcement:**
- Lis pendens for foreclosure of mechanic's lien
- Standard practice
- Time-sensitive deadlines
**Constructive trust:**
- Plaintiff claims property held by defendant
- Property purchased with plaintiff's funds
- Or property converted
- Lis pendens preserves status
## Practical considerations
**Cost:**
- Recording fees: $20-$200 typical
- Attorney's fees to prepare
- Cancellation motion fees: $1,500-$10,000
- Bond costs (if posted)
**Timing:**
- File at lawsuit commencement
- Before any transfer
- Late filing may be too late
- Statute of limitations issues
**Proper drafting:**
- Clear property description
- Specific claim
- Required statutory elements
- ${s.name}-specific format
## Removal upon judgment
**Plaintiff wins:**
- Lis pendens may convert to lien
- Or property transferred
- Court order needed
- Specific procedures
**Plaintiff loses:**
- Lis pendens released
- Court order recorded
- Defendant may seek damages
- Specific procedures
**Settlement:**
- Mutual release
- Recorded with county
- Often part of overall settlement
## Title insurance impact
**During pendency:**
- Title companies refuse / exclude
- Buyer cannot get clear title
- Sale blocked
**After resolution:**
- Specific endorsements
- Document chain showing release
- Marketability restored
## What you should do
If you need to file lis pendens in Vermont: hire experienced real-estate litigation attorney — improper filing creates significant liability. If you face lis pendens against your property: consult attorney immediately to evaluate cancellation / bond options. Most Vermont real-estate attorneys handle lis pendens. Time-sensitive — affects ability to transact.
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*This guide is general information about Vermont law as of mid-2026 and is not legal advice. Lis pendens is technical + state-specific. Talk to a licensed Vermont real-estate attorney about your specific situation.*
This guide is for general information only and does not constitute legal advice. Laws change and outcomes depend on your specific situation — talk to a licensed attorney before acting on anything you read here.