SPIR & Seller Disclosures
Understanding Vermont's mandatory disclosure requirements and protecting yourself from liability
What is SPIR?
The Seller's Property Information Report (SPIR) is a comprehensive disclosure form required by Vermont law (27 V.S.A. § 311). It requires sellers to disclose all known material defects and property conditions that could affect a buyer's decision to purchase or the property's value.
Complete and honest disclosure protects both buyers and sellers, reduces the risk of post-sale disputes, and is legally required in Vermont real estate transactions.
Vermont's Disclosure Law
Understanding the legal requirements under 27 V.S.A. § 311
Vermont Statute 27 V.S.A. § 311
Vermont law mandates that sellers of residential property provide a property disclosure statement to prospective buyers. This disclosure must be made before the buyer signs a purchase and sale agreement, or at the time an offer is presented.
Seller's Obligation
- •Disclose all known material defects that affect property value
- •Provide disclosure before P&S agreement
- •Answer all questions truthfully and completely
- •Update disclosures if new issues arise
Legal Protection
- •Good faith disclosure protects sellers from liability
- •Sellers not liable for unknown or undiscoverable defects
- •Documentation provides evidence of compliance
- •Reduces risk of post-closing disputes and litigation
What Must Be Disclosed
Key areas covered by Vermont's disclosure requirements
Lead-Based Paint
Required for all homes built before 1978. Must provide EPA pamphlet and disclose known lead paint presence.
Water Source & Quality
Disclose water source (well, municipal, shared). Well water testing is mandatory in Vermont.
Septic System
Condition, last pumping date, permits, and any known issues with the septic system or leach field.
Radon Testing
Disclose any radon testing results. Vermont has high radon potential in many areas.
Structural Issues
Foundation cracks, roof condition, water intrusion, or any structural defects.
Environmental Hazards
Underground storage tanks, asbestos, mold, or other environmental concerns.
Additional Important Disclosures
Other property conditions and issues to disclose
When in Doubt, Disclose
If you're unsure whether something needs to be disclosed, err on the side of caution and disclose it. Over-disclosure is always safer than under-disclosure. Material facts that could affect a buyer's decision or the property's value should always be disclosed, regardless of whether they're specifically listed on the SPIR form.
Disclosure Timeline
When disclosures must be provided during the sales process
Complete SPIR form
Work with your agent to complete the form thoroughly and accurately.
Provide SPIR to buyer
Vermont law requires delivery before or with the Purchase & Sale agreement.
Buyer reviews disclosures
Buyers typically have 5-10 days to review and may request additional information.
Update if needed
Disclose any new issues that arise during the transaction period.
Timing is Critical
Vermont law requires that SPIR be provided to the buyer before or at the time a purchase and sale agreement is signed. Late disclosure can give buyers the right to cancel the contract or renegotiate terms. Complete your SPIR early in the listing process to avoid delays.
Consequences of Non-Disclosure
Understanding the risks of incomplete or inaccurate disclosures
Contract Rescission
Buyers may have the right to cancel the purchase agreement if material defects were not disclosed.
Financial Liability
Sellers can be held liable for repair costs, diminution in value, and buyer's expenses.
Legal Action
Buyers may pursue legal action for fraudulent concealment or misrepresentation.
Delayed Closing
Late disclosures can delay closing while issues are addressed or renegotiated.
Real Consequences, Real Costs
Failing to disclose known defects can result in significant financial and legal consequences. Vermont courts have held sellers liable for:
- •Repair costs - Full cost to fix undisclosed defects
- •Diminution in value - Loss of property value due to defects
- •Attorney fees and costs - Buyer's legal expenses in pursuing claims
- •Punitive damages - In cases of fraudulent concealment
The cost of litigation often exceeds the cost of the defect itself. Honest disclosure is always the best policy.
Tips for Completing SPIR Accurately
Best practices for thorough and honest disclosure
Be Thorough
Answer every question completely. 'Unknown' is better than leaving items blank.
Disclose Everything
When in doubt, disclose. It's better to over-disclose than face liability later.
Document Repairs
Provide records of repairs and improvements, including permits and invoices.
Don't Guess
If you don't know something, say so. Don't make assumptions or estimates.
Update as Needed
If new issues arise before closing, update your disclosures immediately.
Seek Professional Help
Consult your attorney or real estate agent if you're unsure about any disclosures.
Working with Your Real Estate Agent
Your real estate agent is an invaluable resource when completing the SPIR form. They can:
Official Vermont SPIR Form
Download the official Seller's Property Information Report form from the Vermont Board of Real Estate
Visit Vermont Real Estate BoardYour real estate agent will typically provide you with the SPIR form
Need Help with Seller Disclosures?
Our experienced team will guide you through the disclosure process to ensure compliance and protect your interests. Contact us for expert assistance.