A Vermont residential real estate purchase agreement (“Contract for Sale and Purchase of Real Estate”) is a contract which commits a buyer to an offer to purchase real estate, according to specific terms agreed by the buyer and seller. Negotiated specifics include the purchase price, financing method, closing date, and more.
Do Sellers in Vermont Have To Disclose Property Defects?
Vermont does not require real estate sellers to disclose material defects in a property. A few states, including Utah, hold to a “caveat emptor” (“may the buyer beware”) rule, where the buyer has responsibility to investigate and resolve issues with the property, although many transactions will still use a standardized disclosure form to give the buyer proper information.
This means even if the buyer doesn’t perform full due diligence, they may not have the legal option to reverse a real estate transaction. For example, if the seller says the condition of the roof is fine to the best of their knowledge, and the buyer doesn’t perform a roof inspection, the buyer won’t be able to reverse the purchase if the roof later turns out to have structural issues.
Vermont only requires disclosure of the following facts on a seller’s property information disclosure:
- Whether the property is in a FEMA-mapped flood hazard area
- Whether the property was subject to flooding or flood damage during the latest period of ownership
- Whether the seller maintains flood insurance
Required Seller Disclosures in Vermont
Vermont sellers of residential real estate must make the following disclosures, as appropriate, in order for a real estate purchase agreement to be considered legally binding:
- Seller’s Property Information Disclosure: Discloses material defects with a property that are known to the seller at the time of sale, and details any potential issues and conditions that may affect the value of the property.
- Lead-Based Paint Disclosure: Any home constructed earlier than 1978 must come with a disclosure upon the transfer of the property which includes any information about the presence of lead on the premises, as well as educational materials that communicate the health risks associated with lead exposure.
Sources
- 1 Vt. Stat. tit. 27 § 380(a)
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Prior to or as part of a contract for the conveyance of real property, the seller shall provide the buyer with the following information:
(1) whether the real property is located in a Federal Emergency Management Agency mapped special flood hazard area;(2) whether the real property is located in a Federal Emergency Management Agency mapped moderate flood hazard area;(3) whether the real property was subject to flooding or flood damage while the seller possessed the property, including flood damage from inundation or from flood-related erosion or landslide damage; and(4) whether the seller maintains flood insurance on the real property.
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