VT Real Estate key terms

The Vermont Secretary of State office that licenses and regulates real estate brokers and salespersons, receives complaints, and enforces the real estate statutes and commission rules.

A five-member advisory body within the Office of Professional Regulation that reviews licensing matters, recommends rules, and hears disciplinary cases involving Vermont real estate licensees.

A Vermont-required written disclosure in which a seller of residential property reports known defects and conditions, generally delivered to the buyer before the purchase and sale agreement is signed.

A Vermont tax on the transfer of real property, computed as a percentage of the purchase price and generally paid by the buyer at closing.

Vermont's land use and development law, which requires a state permit from a District Environmental Commission for large or significant developments judged against specified criteria.

A Vermont program that taxes agricultural and forest land based on its current use value rather than its development value, with a land use change tax imposed when the land is developed.

A Vermont Agency of Natural Resources permit required before installing or repairing a septic system or water supply, often a condition of sale for properties without municipal services.

Municipal regulations that divide a town into districts and specify permitted uses, lot sizes, setbacks, and other development standards for real property.

A Vermont license authorizing a person to operate a brokerage, sponsor salespersons, and provide brokerage services independently after meeting the required experience and education standards.

A Vermont license allowing a person to provide brokerage services only while affiliated with and supervised by a licensed real estate broker.

Advertising that omits the name of the brokerage or licensed firm, which Vermont rules prohibit because the public must be able to identify the licensee responsible for the ad.

The record a Vermont licensee keeps for each transaction, including the agency agreement, disclosures, offers, and closing documents, retained for the period set by OPR rules.

A separate account in which a licensee or brokerage holds money belonging to clients, such as earnest money, apart from the firm's own operating funds.

A written contract between a brokerage and a client that defines the services to be provided, the term of the relationship, compensation, and the duties owed by the licensee.

A written statement, given before brokerage services are provided, that explains whom the licensee represents and the duties owed to clients and to customers.

An arrangement in which one brokerage represents both buyer and seller but assigns separate licensees to each party, so each client receives loyalty from its own designated agent.

A situation in which the same licensee represents both the buyer and the seller in a transaction, permitted only with the informed written consent of both parties.

A client is a party the licensee represents and owes fiduciary duties; a customer is a party who receives services or information but is not represented by the licensee.

The legal duties a licensee owes a client, generally including loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting for money and property.

The written contract in which a buyer agrees to buy and a seller agrees to sell real property, stating the price, closing date, contingencies, and other key terms.

A deposit a buyer gives to show good faith, typically held in trust and applied to the purchase price at closing or forfeited if the buyer breaches without a valid excuse.

A condition in a purchase contract that must be satisfied or waived before closing, such as a financing, inspection, or appraisal contingency; otherwise a party may cancel.

A closing in which a Vermont attorney oversees the settlement, including title review, document preparation, and disbursement of funds, as is customary in Vermont practice.

A deed in which the seller guarantees that title is clear and promises to defend the buyer against claims, using Vermont's statutory form with title covenants.

A deed that transfers whatever interest the seller may have without any warranty of title, commonly used to clear title defects or transfer property between family members.

An examination of public land records to trace ownership and identify liens, easements, and other encumbrances affecting a property before purchase or closing.

A policy that protects an owner or lender against losses from title defects, liens, or claims that existed before the policy date but were not revealed by the record search.

A right held by one person to use another person's land for a specific purpose, such as a driveway, utility line, or access to a landlocked parcel.

A legal claim against property that secures a debt or obligation, such as a mortgage, tax lien, or mechanic's lien, and must be resolved at closing.

Any right, interest, or claim that burdens real property and may reduce its value or limit its use, including liens, easements, and restrictive covenants.

The amount of a mortgage loan divided by the property's appraised value or purchase price, used by lenders to measure risk and set down payment requirements.

The four components of a typical monthly mortgage payment: principal, interest, property taxes, and homeowners insurance, often used when estimating affordability.

An estimate of a property's likely selling price prepared by a licensee by comparing similar recent sales, current listings, and expired listings; it is not an appraisal.

A valuation method that estimates value by analyzing recent sales of similar properties and adjusting for differences in features, condition, and location.

A contract in which a landlord grants a tenant the right to possess and use property for a stated term in exchange for rent.

Money a landlord holds to cover unpaid rent or damage, which under Vermont law may not exceed one month's rent and must be returned with an itemized statement.

A landlord's legal duty to keep rented housing safe, sanitary, and fit for human habitation, covering essentials such as heat, water, and structural safety.

A characteristic such as race, color, religion, sex, disability, familial status, age, or receipt of public assistance that fair housing laws bar from consideration in housing decisions.

The fair housing violation of directing prospective buyers or tenants toward or away from particular neighborhoods because of their protected class rather than their housing needs.

A Vermont statute prohibiting unfair or deceptive acts or practices in commerce, which applies to real estate advertising, representations, and dealings with consumers.