In the absence of notice of renewal arising from possession, record, or otherwise, a recorded lease or other instrument evidencing a right or interest in real property with a specified term does not constitute an encumbrance on title when the term expressed in such leases or other instrument has expired.
Comment 1. The title examiner should disclose the existence of the instrument identifying the interest and an explanation of the reasons why the interest no longer constitutes an encumbrance on title.
Comment 2. The word “term” as used in this title standard means the specified term of the interest and any possible renewals or extensions.
Comment 3. Certain interests in land are created for a specified term such as conveyances of standing timber, oil and gas leases and conveyances of mining rights. Those interests in which the time of termination is ambiguous in the instrument may be terminated by curative statutes. Reference may be had to 27 V.S.A. §609 regarding limitations or standing timber and 29 V.S.A. §561 et seq. regarding oil and gas leases.