Bill As Introducedh.447

BILL AS INTRODUCEDH.447

1999Page 1

H.447

Introduced by Representatives Livingston of Manchester, Baker of West Rutland, Barbieri of Wallingford, Carmolli of Rutland City, Crawford of Burke, Dominick of Starksboro, Edwards of Swanton, Ginevan of Middlebury, Hube of Londonderry, Kitzmiller of Montpelier, Lehman of Hartford, Marron of Stowe, Pembroke of Bennington, Sweaney of Windsor and Voyer of Morristown

Referred to Committee on

Date:

Subject:Municipal government; municipal permits; statute of limitations on municipal enforcement; Bianchi repeal; encumbrances

Statement of purpose: This bill proposes to repeal most of the municipal record-keeping requirements and municipal enforcement limitations enacted in the wake of the Bianchi case, and to provide that failure to obtain or comply with a municipal permit or certificate does not constitute an encumbrance on record title.

AN ACT RELATING TO REPEALING CERTAIN MUNICIPAL RECORD-KEEPING REQUIREMENTS AND PROVIDING THAT NONCOMPLIANCE WITH LOCAL PERMIT REQUIREMENTS DOES NOT CONSTITUTE AN ENCUMBRANCE ON RECORD TITLE

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. 24 V.S.A. § 1154 is amended to read:

§ 1154. RECORDS; PHOTOCOPIES

(a) A town clerk shall record in the land records, at length or by accurate, legible photocopy, in books to be furnished by the town:

(1) deeds,

(2) instruments or evidences respecting real estate,

(3) writs of execution, other writs or the substance thereof, and the returns thereon,

(4) hazardous waste site information and hazardous waste storage, treatment and disposal certifications established under 10 V.S.A. chapter 159,

(5) underground storage tank information under 10 V.S.A. chapter 59,

(6) other instruments delivered to the town clerk for recording.

(b) The town clerk shall record in the land records a memorandum or notice of a municipal permit, or a statement, or a notice of violation, which is delivered for recording as described below:

(1) municipal permits relating to land, structures, and other improvements to the land, including zoning, planning, subdivision, site plan, health, street, building, or other municipal permits or approvals required by statute, ordinance or regulation to be recorded, minutes of meetings that relate to municipal permits, and permit amendments,

(2) certificates of occupancy, certificates of compliance or similar municipal certificates,

(3) any notice of violation of any municipal permit, approval, condition or certificate, and

(4) written statements of an appropriate authorized municipal officer, issued on request of a party, certifying that no municipal permit, including a certificate, zoning, building, highway access, health or other permit or approval is required for a specific property.

(c) If a municipal memorandum or notice is recorded, it shall list:

(1) as grantor, the owner of record title to the property at the time the permit, certificate or notice is issued;

(2) as grantee, the municipality issuing the permit, certificate or notice;

(3) the municipal or village office where the original, or a true, legible copy of the permit, certificate, statement or notice may be examined;

(4) whether an appeal of such permit, certificate or notice has been taken;

(5) tax map lot number or other description identifying the lot.

(d) The town clerk shall keep in each book of record an index of reference to the instruments or records in that book.

Sec. 2. 24 V.S.A. § 1161 is amended to read:

§ 1161. GENERAL INDEX

(a) A town clerk shall keep a general index of transactions affecting the title to real estate wherein he or she shall enter in one column, in alphabetical order, the name of the grantor to the grantee and, in a parallel column, the name of the grantee from the grantor, of every deed, conveyance, mortgage, lease or other instrument affecting the title to real estate, and each writ of attachment, notice of lien or other instrument evidencing or giving notice of an encumbrance on real estate which is filed or recorded in the town clerk’s office, with the name of the book, volume or other manner of recording and the page of record in the following form:

Book Grantor Page Book Grantee Page

to from

Grantee Grantor

1 A. to B. 1 1 B. from A. 1

If the instrument is executed on behalf of, or to convey the interest of another party, the same shall be indexed in the name of the other party as grantor. In case the instrument is executed by more than one grantor and to more than one grantee, the name of each grantor and each grantee shall be indexed. When the party is a natural person the name shall be indexed under the first letter of such person's surname, and when the party is a corporation the name shall be indexed under the first letter of the first word of its name disregarding articles and initials. For purposes of this section, a defendant against whose property a writ of attachment is filed or a person against whose property a lien is asserted, shall be considered a grantor, and a plaintiff filing a writ, or a person asserting a lien shall be considered a grantee. Land plats filed in the office shall be indexed in such manner as the public records director shall by rule prescribe. The general index may be kept electronically.

(b) For the purposes of this section, “transactions affecting title to real estate” shall include the instruments described in subsections 1154(a) and (b) of this title. Each owner of record title to the property at the time such an instrument is issued shall be listed as the grantor. The state of Vermont shall be listed as the grantee for instruments described in subdivisions 1154(a)(4) and (5) of this title. The municipality issuing the instrument shall be listed as the grantee for instruments described in subdivisions 1154(b)(1) and (2) of this title.

Sec. 3. 24 V.S.A. § 4443 is amended to read:

§ 4443. ZONING PERMITS AND CERTIFICATES OF OCCUPANCY

(a) Within any municipality in which any zoning regulations have been adopted:

(1) No land development may be commenced within the area affected by such zoning regulations without a permit therefor issued by the administrative officer. No zoning permit may be issued by the administrative officer except in conformance with such zoning regulations.

(2) If the zoning regulations so adopted so provide, it shall be unlawful to use or occupy or permit the use or occupancy of any land or structure, or part thereof created, erected, changed, converted, or wholly or partly altered or enlarged in its use or structure after the effective date of this chapter, within the area affected by such zoning regulations, until a certificate of occupancy is issued therefor by the administrative officer stating that the proposed use of the structure or land conforms to the requirements of such zoning regulations.

(3) No zoning permit issued pursuant to this section shall take effect until the time for appeal in section 4464(a) of this title has passed, or in the event that a notice of appeal is properly filed, such permit shall not take effect until final adjudication of said appeal.

(b) Each zoning permit issued under this section shall contain a statement of the period of time within which an appeal may be taken. Within three days following the issuance of a zoning permit, the administrative officer shall:

(1) Deliver a copy of the permit to the listers of the municipality; and

(2) Post a copy of the permit in at least one public place in the municipality until the expiration of fifteen days from the date of issuance of the permit.

(c) Within 30 days after a municipal permit relating to land, structures, and other improvements to land, including a zoning, planning, subdivision, site plan, health, street, building or other municipal permit, certificate of occupancy, certificate of compliance or similar certificate has become final or within 30 days of the issuance of any notice of violation, the appropriate municipal official shall deliver a notice of violation or memorandum or notice of recording to the town clerk for recording as provided in subsection 1154(a) or (b) of this title. The municipal officer may charge the applicant for the cost of the recording fees as required by law.

(d) If a public notice is issued under this chapter with respect to the adoption or amendment of a bylaw, or an amendment to an ordinance adopted under prior enabling laws, the administrative officer shall not issue any permit under section (a)(1) of this section, if the permit is with regard to the bylaw, or amendment to a bylaw or ordinance, for the period commencing upon the date of that public notice and ending upon the effective date of the adoption or rejection of the bylaw or amendment, except with the written consent of the legislative body of the municipality given after public hearing upon public notice.

Sec. 4. 27 V.S.A. § 612 is amended to read:

§ 612. MUNICIPAL PERMITS

(a) Notwithstanding the majority decision in Bianchi v. Lorenz (1997), for land development, as defined in 24 V.S.A. § 4303(3), that commenced prior to the effective date of this section, no encumbrance on record title to real estate or effect on marketability shall be created:

(1) by the failure to obtain or comply with the terms or conditions of any required municipal permit, including any zoning, planning, subdivision, site plan, health, street or building permit; or

(2) by the failure to obtain any required certificate of occupancy, certificate of compliance or similar certificate; or

(3) by the failure to record such a permit or certificate; or

(4) by a violation with respect to which the municipality is limited from instituting an action, injunction or other enforcement proceeding pursuant to 24 V.S.A. § 4496.

(b) If a purchaser of real property determines after entry into a sales agreement but prior to closing, that “land development,” as defined by 24V.S.A. § 4303(3), has occurred on the real property without any required municipal permit or certificates having been obtained, or in violation of any applicable permit, that purchaser shall have the right to terminate the contract to purchase the real property prior to closing, if the purchaser may be subject to an enforcement action under 24 V.S.A. § 4496 in the event the purchaser were to become the owner or occupant of the real property.

Sec. 5. REPEAL

24 V.S.A. § 4496 (limitations on enforcement of municipal permits and certificates) is repealed.

Sec. 6. STUDY COMMITTEE ON A SIMPLIFIED PROCESS FOR

RECORDING PERMITS IN VERMONT’S LAND RECORDS

(a) A committee is established to develop a simplified process for recording permits in Vermont’s land records. The committee shall consist of the Vermont Secretary of State, or a designee; one representative each of the Vermont League of Cities and Towns and the Vermont Bar Association; two representatives from the Vermont Municipal Clerks and Treasurers’ Association who are currently serving as town clerks, one from a municipality with a population of more than 10,000 persons and one from a municipality with a population of less than 10,000 persons; and the state archivist. The Secretary of State or the Secretary’s designee shall convene the first meeting of the committee.

(b) The committee shall develop and recommend a simplified, standardized process for recording permits in Vermont’s land records in the towns so that Vermont land titles may be more easily, more reliably, and less expensively searched.

(c) The Secretary of State shall provide staff support to the committee. The committee shall report its findings and recommendations to the House Committees on Government Operations and on Local Government, and the Senate Committee on Government Operations.