VT Real Estate cheat sheet

26 V.S.A. chapter 41 governs broker and salesperson licensing; the Vermont Real Estate Commission, housed in the Office of Professional Regulation (OPR), adopts rules, approves courses, and imposes discipline.

Statute of frauds, 12 V.S.A. § 181: contracts for the sale of land and leases longer than one year must be in writing and signed by the party to be charged.

Recording statute, 27 V.S.A. § 342: an unrecorded conveyance is void against a later good-faith purchaser for value who records first, making Vermont a race-notice state.

Enforcement path: consumer complaint to OPR, investigation, possible hearing before the Real Estate Commission, then sanctions ranging from reprimand and probation to suspension, revocation, and administrative penalties.

Vermont Property Transfer Tax, 32 V.S.A. chapter 231: principal residence pays 0.5% of the first $100,000 plus 1.25% above that; all other property pays 1.25% of the first $100,000 plus 1.5% above.

The PTT-172 property transfer tax return is filed with the deed at the town clerk; by Vermont custom the buyer bears the transfer tax.

12 V.S.A. § 101 homestead exemption shields up to $125,000 of equity in a Vermont dwelling and its land from attachment and execution.

9 V.S.A. chapter 63, the Consumer Protection Act, reaches unfair or deceptive acts in real estate commerce, including misleading advertising and misstated property condition.

Licensees may complete Commission-approved standard forms but may not draft deeds, write legal descriptions, or give legal advice; those acts are the practice of law.

Salesperson pathway: 40-hour approved prelicense course, state licensing exam, and employment by a licensed Vermont broker; broker licensure adds documented experience and a broker prelicense course.

Continuing education is required each renewal cycle; under current Commission rules that is 16 hours per two-year cycle, and completion certificates must be retained.

All advertising must show the brokerage's licensed name; a salesperson may not advertise property or themselves as a licensee under their own name alone.

Advertising must be truthful and non-misleading as to price, terms, condition, and availability; false or deceptive ads violate Commission rules and the Consumer Protection Act.

Client funds, including earnest money, go into a designated trust account kept separate from the broker's operating and personal funds, with no commingling.

Transaction files, listing and agency agreements, trust records, and copies of advertising are retained for the period set by Commission rule (currently three years) and produced on OPR request.

Unlicensed assistants may do clerical, scheduling, and delivery work only; they may not show property, quote terms, discuss property details, or negotiate.

Paying a commission, referral fee, or other compensation to an unlicensed person for brokerage activity is prohibited.

Vermont licensees may serve as seller's agent, buyer's agent, dual agent with written consent of both parties, or designated agent within a single firm.

The Commission-approved agency disclosure form must be given and the relationship disclosed in writing before brokerage services are provided; agency agreements must carry a definite termination date.

Dual agency requires informed written consent from both clients; the broker may not advantage one side over the other and must protect both confidences.

Designated agency: the appointing broker assigns different licensees to buyer and seller in the same firm with written consent, limiting conflicts between the two clients.

Fiduciary duties owed to a client: loyalty, obedience to lawful instructions, disclosure of material information, confidentiality, accounting for funds, and reasonable care and diligence.

Confidentiality survives termination of the agency relationship, so information learned during the representation remains protected afterward.

Known material facts about the property's condition must be disclosed to all parties regardless of which side the licensee represents; latent defects are never confidential.

Ministerial acts such as scheduling a showing, delivering documents, or providing factual information do not by themselves create an agency relationship with an unrepresented consumer.

A buyer's broker may be compensated through a cooperative split offered by the listing broker; the arrangement and its source must be disclosed to the buyer.

Enforceability requires writing, signature of the party charged, and the essential terms: parties, identifiable property, price, and mutual assent.

Typical Vermont purchase-and-sale contingencies: financing, appraisal, inspection, potable water and wastewater system, permit status, and marketable title.

Earnest money is deposited in the listing broker's trust account and credited to the buyer at closing; the liquidated-damages clause usually defines the seller's remedy on buyer default.

Inspection, financing, and title review periods are fixed calendar dates; missing a deadline can waive the related contingency or create a default.

Federal lead-based paint disclosure applies to pre-1978 housing: seller disclosure, the EPA pamphlet, and a ten-day opportunity to test.

'As-is' language and assignment clauses do not eliminate the seller's and licensee's duty to disclose known material defects.

Specific performance and liquidated damages are alternative remedies; enforceability depends on the contract language actually chosen.

Closing date, proration date, and possession date are separate terms and need not coincide.

Any change to a signed contract requires a written amendment or addendum signed by both parties; oral modifications are generally unenforceable.

Vermont records land at the town level: deeds, mortgages, liens, and surveys are filed with the town clerk where the land lies, since Vermont has no county recording offices.

Warranty deed covenants: seisin, right to convey, freedom from encumbrances, quiet enjoyment, general warranty, and further assurances.

Quitclaim deed conveys only whatever interest the grantor actually holds, with no covenants, and is common for clearing title, gifts, and family transfers.

Executable deed elements: identifiable grantor and grantee, words of grant, adequate property description, consideration, signature, notarial acknowledgment, delivery, and recording.

Recording order fixes priority; a mortgage recorded first generally outranks later judgments, liens, and mortgages.

Common encumbrances: mortgages, tax and judgment liens, easements and rights-of-way, covenants and conditions, and Vermont's ancient roads and legal trails.

Vermont practice relies on an attorney's examination of town records and a written title opinion; title insurance, when purchased, is issued following that examination.

Property taxes are prorated to the closing date using the town's fiscal year and rate; the PTT-172 return is filed with the deed at recording.

Act 250, wastewater, and shoreland permits run with the land, so a buyer takes subject to permit conditions and any existing violations.

Tenancy in common gives co-owners separate, freely transferable shares with no survivorship; joint tenancy requires the four unities and carries a right of survivorship.

Act 250 triggers include subdivision into 10 or more lots, construction of 10 or more housing units, and commercial or industrial development exceeding the acreage thresholds that depend on whether the town has zoning.

District Environmental Commissions apply Act 250's ten criteria, covering water, air, traffic, noise, aesthetics, and conformance with the town and regional plans.

Local zoning and subdivision authority derives from 24 V.S.A. chapter 117; towns without permanent zoning expose development to Act 250 jurisdiction at lower acreage.

Vermont Wetlands Rules, 10 V.S.A. chapter 37: filling, dredging, or altering a significant wetland requires a state permit, and protected buffers extend beyond the wetland edge.

The Shoreland Protection Act, 10 V.S.A. chapter 49A, regulates clearing and impervious surface within 250 feet of a lake.

Wastewater and potable water systems require an approved permit under the Environmental Protection Rules; replacement systems need a permit before construction begins.

Use value appraisal (current use), 32 V.S.A. chapter 124, taxes enrolled farm, forest, and conservation land at use value; withdrawal or development triggers a land use change tax.

Flood hazard regulation: National Flood Insurance Program participation depends on town flood hazard bylaws, and river corridor protections limit new encroachments.

The note is the borrower's promise to repay; the mortgage is the security instrument granting the lender a lien on the property.

PITI = principal + interest + property taxes + hazard insurance; lenders derive front-end housing and back-end total-debt ratios from it.

LTV = loan amount ÷ the lesser of purchase price or appraised value; mortgage insurance is generally required above 80% LTV and cancellable at 78% under federal law.

TRID timing: Loan Estimate within three business days of application; Closing Disclosure at least three business days before consummation.

Right of rescission: three business days for refinances and home-equity loans secured by a principal residence, but never for a purchase-money loan.

One discount point equals one percent of the loan amount, paid at closing to buy down the interest rate.

ARM mechanics: index plus margin equals the fully indexed rate; caps limit the initial adjustment, periodic adjustments, and lifetime increase.

The Vermont Housing Finance Agency offers below-market mortgages and down payment assistance to income-eligible Vermont buyers.

Recording order sets mortgage priority, so a second mortgage is subordinate to the first mortgage and to later-recorded liens only as the statutes allow.

A CMA is a licensee's opinion of price built from comparable sales and listings; an appraisal is a USPAP-compliant valuation performed by a state-licensed or certified appraiser.

Sales comparison rule: adjust the comparables toward the subject - add value when the comparable is inferior, subtract when it is superior.

Adjustment sequence: transactional differences (financing, conditions of sale, time) first, then physical and locational differences.

Income approach: value = net operating income ÷ capitalization rate; cap rate = NOI ÷ price.

Gross rent multiplier = sale price ÷ gross monthly rent.

Cost approach: value = replacement cost − depreciation + land value; most reliable for new construction or special-purpose improvements.

Months of inventory = active listings ÷ monthly sales rate; roughly six months indicates a balanced market.

Highest and best use must be legally permissible, physically possible, financially feasible, and maximally productive.

Price per square foot = price ÷ gross living area; it is a screening tool only, because it ignores condition, lot size, and location.

A lease longer than one year must be in writing under 12 V.S.A. § 181; oral month-to-month tenancies are valid but harder to prove.

Vermont caps a residential security deposit at one month's rent and requires return of the deposit with an itemized statement within 14 days.

The implied warranty of habitability requires the landlord to keep the unit safe, sanitary, and fit for habitation; lease language waiving that duty is unenforceable.

Retaliatory eviction is prohibited: a landlord may not terminate a tenancy or raise rent in response to a tenant's good-faith complaint or code enforcement report.

Pre-1978 rental units fall under Vermont's lead law, which requires Essential Maintenance Practices performed or supervised by trained personnel plus compliance filings.

Fair housing governs rental advertising, screening criteria, and reasonable accommodation requests, including assistance animals.

Managing rental property for a fee is brokerage activity; unlicensed persons may not procure tenants or negotiate lease terms.

Rent proration = monthly rent ÷ days in the month × days occupied.

CAM charges, escalations, and percentage rent must be defined in the lease; ambiguous clauses are usually construed against the drafter.

Federal Fair Housing Act protected classes: race, color, religion, sex, national origin, familial status, and disability.

Vermont adds age, marital status, sexual orientation, gender identity, and source of income such as public assistance.

Prohibited practices include refusing to show or rent, steering, offering different terms, discriminatory advertising, blockbusting, and redlining.

Reasonable accommodation and modification requests are evaluated case by case; blanket no-pet policies yield to service and assistance animals.

RESPA § 8 bars giving or receiving anything of value for referral of settlement service business; bona fide salaries and fees for services actually performed are permitted.

NAR Code of Ethics: Article 1 protects the client's interest, Article 2 forbids exaggeration and misrepresentation, Article 10 forbids discrimination.

Advertising must identify the brokerage and avoid words, images, or media placement that express a preference based on a protected class.

Consumer Protection Act claims arise from misstating square footage, condition, permits, ownership, or the availability of a property.

Licensees may not give legal or tax advice; clients should be referred to attorneys and accountants for those questions.