Vt. Stat. Ann. tit. 27, § 408

An agreement for the subordination of a prior lien or other encumbrance on real property shall be recorded in the land records of the town in which the property is situated, and a reference to the record of the subordination agreement shall be noted on the margin of the record of the instrument affected by the agreement. If not so recorded, the agreement shall bind only the parties to the agreement.