VT Real Estate flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Vermont Real Estate Commission

The licensing and disciplinary body within the Vermont Office of Professional Regulation that issues broker and salesperson licenses, adopts rules, and hears disciplinary complaints under 26 V.S.A. chapter 41.

Vermont statute of frauds

12 V.S.A. § 181 requires that contracts for the sale of land, and leases exceeding one year, be in writing and signed by the party to be charged.

Vermont recording statute

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

Vermont salesperson license

A candidate must complete the 40-hour approved prelicense course, pass the state exam, and work under an employing licensed broker; the license alone never permits independent brokerage.

Broker trust account rules

Earnest money and client funds must be deposited in a designated trust account, kept separate from the broker's operating funds, with no commingling, and records open to OPR inspection.

Unlicensed assistant limits

An unlicensed assistant may perform clerical work such as scheduling and filing but may not show property, quote terms, discuss property details, or negotiate on behalf of anyone.

Vermont agency disclosure

Licensees must give consumers the Commission-approved agency disclosure form and disclose whom they represent before providing brokerage services, typically at first substantial contact.

Dual agency in Vermont

A broker representing both buyer and seller must obtain informed written consent from both parties and may not advocate for one side to the detriment of the other.

Designated agency

The appointing broker assigns one licensee to represent the buyer and another to represent the seller within the same firm, with written consent, to limit conflicts.

Fiduciary duties

A licensee owes the client loyalty, obedience to lawful instructions, disclosure of material information, confidentiality, accounting for funds, and reasonable care; confidentiality survives termination of the agency.

Earnest money

A good-faith deposit delivered with the purchase-and-sale contract, usually held in the listing broker's trust account and credited to the buyer at closing.

Purchase-and-sale contingencies

Contract conditions that must be satisfied for the sale to close, commonly financing, appraisal, inspection, potable water and wastewater systems, and clear title; failure may allow termination.

Time is of the essence

A contract clause making stated deadlines enforceable, so a party who misses a performance date may be in default and exposed to remedies such as forfeiture of the deposit.

Warranty deed

A deed in which the grantor guarantees title and covenants against encumbrances, for quiet enjoyment, and to defend title, unlike a quitclaim deed, which carries no warranties at all.

Vermont land records

Deeds, mortgages, liens, and surveys are recorded with the town clerk of the town where the land lies; Vermont has no county-level recording offices.

Property transfer tax return

Vermont's PTT-172 return must accompany the deed when it is recorded, and the tax is computed on the transfer price at rates that differ for principal residences and other property.

Title opinion versus title insurance

In Vermont an attorney typically examines the town land records and issues a written title opinion; title insurance, if purchased, is issued based on that examination.

Act 250

Vermont's land use and development law, 10 V.S.A. chapter 151, requiring a permit from a District Environmental Commission for projects meeting statutory size thresholds and ten criteria.

Vermont wetlands permit

Under 10 V.S.A. chapter 37, filling, dredging, or altering a significant wetland requires a state permit, and unpermitted activity can trigger enforcement and restoration orders.

Current use appraisal

Vermont's program taxing enrolled farm, forest, and conservation land at its use value instead of market value; withdrawal or development triggers a land use change tax.

PITI

The monthly housing payment comprising principal, interest, property taxes, and hazard insurance; lenders use it to calculate the front-end housing expense ratio.

Loan-to-value ratio

The loan amount divided by the lesser of the purchase price or appraised value, expressed as a percentage; higher ratios generally require mortgage insurance.

Closing Disclosure timing

Under federal disclosure rules the Closing Disclosure must reach the borrower at least three business days before consummation and itemizes final loan terms and closing costs.

Discount points

Prepaid interest paid at closing to buy down the note rate; one discount point equals one percent of the loan amount and reduces the monthly payment.

Comparative market analysis

A licensee's estimate of value based on recently sold, pending, and active comparable properties adjusted for differences; it is not an appraisal and needs no appraiser license.

Adjusting comparables

Apply adjustments to the comparable sale prices, not the subject property: add value when the comparable is inferior and subtract when it is superior.

Capitalization rate

Value equals net operating income divided by the capitalization rate; equivalently, the cap rate equals NOI divided by price, used in the income approach.

Months of inventory

Active listings divided by the average monthly sales rate; roughly six months suggests a balanced market, fewer months indicates a seller's market.

Vermont security deposit limit

For residential tenancies Vermont limits the security deposit to one month's rent and requires the landlord to return it with an itemized statement within 14 days.

Implied warranty of habitability

Vermont law requires landlords to deliver and maintain residential premises that are safe, sanitary, and fit for human habitation, regardless of what the lease says.

Vermont fair housing classes

Beyond the federal protected classes, Vermont prohibits housing discrimination based on age, marital status, sexual orientation, gender identity, and source of income such as public assistance.

RESPA Section 8

Federal law prohibiting giving or receiving anything of value in exchange for referrals of settlement service business, including unearned fee splits between brokers and lenders.