Understanding real estate documents is essential to protecting your interests. This guide explains common forms, contracts, and disclosures you'll encounter when buying a home in Vermont.
The information provided here is for educational purposes to help you understand common real estate forms and clauses. These are NOT legal documents and should NOT be used for actual transactions.
Real estate contracts are legally binding and vary based on your specific situation. Always work with a licensed Vermont real estate attorney to review and prepare your actual purchase documents. In Vermont, attorneys are required at closing to protect your interests.
The Purchase and Sale Agreement (P&S Agreement) is the primary contract between buyer and seller. It's a legally binding document that outlines all terms of the sale. Your real estate agent typically prepares a draft, but your attorney must review and finalize it in Vermont.
The contract specifies the total purchase price and the earnest money deposit (typically 1-3% of purchase price) that demonstrates your commitment.
Contingencies are conditions that must be met for the sale to proceed. They protect you from losing your deposit if certain issues arise.
The contract establishes when the sale closes and when you take possession of the property.
The contract describes the property being sold and what's included (fixtures) vs. excluded (personal property).
The agreement outlines what each party is responsible for during the transaction.
What happens if either party fails to perform their obligations under the contract.
This agreement formalizes your relationship with your real estate agent and establishes their duties and your obligations. Understanding this agreement helps you know what to expect from your agent.
You agree to work exclusively with one agent/brokerage for a specified time period and geographic area.
Advantages:
Considerations:
You can work with multiple agents, and only the agent who shows you the property you buy earns the commission.
Advantages:
Considerations:
When you enter into a buyer representation agreement, your agent owes you these fiduciary duties under Vermont law:
Federal Requirement for Pre-1978 Homes
If you're buying a home built before 1978, federal law requires specific lead-based paint disclosures and notifications. Lead paint was banned for residential use in 1978, so older homes may contain lead hazards.
Sellers of homes built before 1978 must disclose known lead-based paint hazards and provide available records/reports.
Buyers have the right to conduct a lead paint inspection or risk assessment during a 10-day period (or mutually agreed timeframe).
Sellers must provide buyers with the EPA pamphlet 'Protect Your Family from Lead in Your Home' and a lead disclosure form.
Both parties must sign a Lead-Based Paint Disclosure form acknowledging receipt of information and waiver or use of inspection period.
Right to Inspect
You have 10 days (or a mutually agreed timeframe) to conduct a lead paint inspection or risk assessment at your expense.
Right to Waive
You can waive your right to a lead inspection, but you must still receive the disclosure information and EPA pamphlet.
Right to Withdraw
If significant lead hazards are found during inspection, you can negotiate repairs, a price reduction, or withdraw from the contract (depending on your contingencies).
Contingencies are "escape clauses" that allow you to back out of the contract without losing your earnest money deposit if certain conditions aren't met. These are your safety nets—use them wisely.
Allows you to hire a professional inspector to evaluate the property's condition.
Key Terms to Understand:
Pro Tip: Always get a professional inspection, even on newer homes. Inspection costs ($300-500) are minor compared to potential repair costs.
Protects you if you can't secure a mortgage loan on acceptable terms.
Key Terms to Understand:
Pro Tip: Get pre-approved (not just pre-qualified) before making an offer to strengthen your financing contingency.
Sale is contingent on the home appraising at or above the purchase price.
Key Terms to Understand:
Pro Tip: In hot markets, some buyers waive this contingency—but it's risky. You may need extra cash if appraisal is low.
Your purchase is contingent on selling your current home first.
Key Terms to Understand:
Pro Tip: This contingency makes your offer less competitive. Consider selling your home first or bridge financing if possible.
Vermont has unique laws and regulations that may require specific clauses or considerations in your purchase agreement. Your attorney will ensure these are properly addressed.
For larger developments or subdivisions, Vermont's Act 250 requires state permits for land development. Ensure any required permits are in place or obtainable.
Vermont has strict regulations for septic systems. The contract should address septic inspection, permits, and compliance with state wastewater rules.
If property is enrolled in Vermont's Current Use program (reduced property taxes for agricultural/forest land), there may be Land Use Change Tax due at sale.
Vermont towns have varying zoning laws. Verify the property's zoning allows your intended use and any future development plans.
For properties with wells, confirm water quality, flow rate, and Vermont well construction standards. Test water quality and quantity.
Vermont is a 'metes and bounds' state. Consider getting a survey, especially for rural properties, to confirm boundaries and avoid disputes.
Why These Matter
Vermont's rural character, environmental regulations, and land use laws create unique considerations not found in many other states. These clauses protect you from unexpected costs, permit issues, or legal complications. Your attorney will ensure all Vermont-specific requirements are addressed in your contract.
This information is for educational purposes only. It is NOT legal advice and should NOT be used as a substitute for professional legal counsel.
Real estate contracts are complex legal documents that vary based on individual circumstances, property type, location, and transaction details. Every purchase agreement should be customized to your specific situation and reviewed by a qualified attorney.
Vermont law requires a licensed attorney to conduct real estate closings. Your attorney will:
Never sign a real estate contract without having it reviewed by your attorney. The cost of legal review (typically $800-$1,200) is minimal compared to the potential legal and financial risks of signing a flawed or unfavorable contract.
Understanding these documents is just the first step. Our team will guide you through every contract, form, and disclosure, and connect you with trusted Vermont attorneys to protect your interests.
