Selling a Home in Vermont: Step-by-Step
Selling your home in Vermont has lots of moving parts. Use this practical, Vermont-specific checklist to understand each stage—from choosing your team to handing over the keys. It also highlights where a Vermont real estate attorney keeps your sale smooth, compliant, and on schedule.
1) Hire Your Team Early
Select a Vermont-licensed listing real estate agent who knows your market. Engage a Vermont real estate attorney at the same time. Your attorney drafts or reviews offer terms, handles title payoff and curatives, prepares the deed and transfer documents, and coordinates closing logistics.
2) Get the Property Ready
Declutter, make sensible repairs, and gather key documents (any well/septic permits, past service records, association documents, leased items, utility info). A light pre-listing tune-up helps your days-on-market and inspection negotiations later.
3) Complete Required Disclosures
Provide all legally required disclosures and any material facts you know about the property. If the dwelling was built before 1978, federal law requires a Lead-Based Paint Disclosure (including giving buyers the EPA pamphlet and an inspection/assessment opportunity). Other disclosures are often required which your Realtor and attorney can assist with.
4) Confirm Smoke & CO Detector Compliance (Before Closing)
Vermont law requires photoelectric smoke detectors near bedrooms and on each level and carbon monoxide detectors near bedrooms in one- and two-family dwellings at transfer. Install per manufacturer instructions and test them well before closing.
5) Understand Who Pays the Property Transfer Tax
In Vermont, the buyer typically pays the Property Transfer Tax at closing (parties may negotiate otherwise).
6) Prepare for Nonresident Seller Withholding (If Applicable)
If you’re not a Vermont resident, the buyer must generally withhold 2.5% of the sale price (or a gain-based amount under current rules) and submit it to the Vermont Department of Taxes using Form RW-171—unless an exemption applies. Your attorney will help determine eligibility for exemptions and handle filings.
7) Consider Vermont Land Gains Tax (Special Situations)
If you’re selling subdivided land held less than six years, Vermont’s Land Gains Tax may apply, with rates that decrease as holding period increases; there are exemptions. Your attorney will evaluate quickly so there are no surprises at closing.
8) Water & Wastewater: Permits and Records
Have well and septic information ready (permits, “WW” numbers, as-built, service records). Buyers and attorneys often verify systems through the State’s wastewater records, and clean documentation speeds title clearance.
9) Handle Offers and Contract Terms
When an offer arrives, confirm price, deadlines, what conveys, inspection and financing timelines, appraisal language, rent-backs if needed, and remedies for default. Your attorney will review the contract to be sure the terms are fair and your interests are protected.
10) Home Inspection Response
Expect requests for repairs or credits. Decide what’s reasonable relative to market conditions and disclosure obligations. Your attorney drafts changes to the contract, keeps contingency dates on track, and protects you from open-ended repair obligations.
11) Appraisal and Access
If the buyer has financing, an appraisal will be ordered. Keep access simple, confirm utilities are on, and address any agreed repairs promptly so the buyer’s loan can be cleared to close.
12) Title Payoffs and Curatives
13) Closing Package and Proceeds
Your attorney prepares the warranty deed, Property Transfer Tax Return, nonresident withholding forms (if needed), affidavits, disclosures and reviews the closing statement. Confirm your wire instructions directly with the law firm via a verified channel to avoid fraud. (We use secure processes to protect you.)
14) Closing Day
Sign the closing documents with the assistance of your attorney. Once the buyer’s funds arrive and the deed is released for recording with the Town/City Clerk, your proceeds are disbursed by wire or check the same day in most transactions.
15) After Recording
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Buying or selling real estate in Vermont involves more than agreeing on a price. One of the most important but often misunderstood protections is title insurance. Many buyers ask whether it is truly necessary. The short answer is that while Vermont law does not require title insurance, it is often a smart and valuable safeguard. What Is Title Insurance? Title insurance is a policy that protects property owners and lenders against financial loss due to defects in the title. A title defect is any issue that could affect ownership rights, such as unknown liens, unpaid taxes, errors in public records, undisclosed heirs, boundary disputes, or forged documents. Unlike other types of insurance, title insurance protects against past problems, not future events. Is Title Insurance Required in Vermont? No, Vermont law does not require buyers to purchase title insurance. However, most lenders will require a lender’s title insurance policy if you are financing the purchase. An owner’s policy is optional, but strongly recommended. If you are paying cash, no one will require title insurance, but that does not eliminate the underlying risks. What Does a Title Search Do? Before issuing a policy, a real estate attorney performs a title search by reviewing land records to confirm that the seller has clear ownership. While this process is thorough, it is not foolproof. Some issues cannot be discovered through a title search alone, including hidden defects in the chain of title, clerical recording mistakes, fraud, forgery, or missing heirs. Title insurance provides protection against these risks even after the closing. Owner’s Policy vs Lender’s Policy Understanding the difference is important. A lender’s title insurance policy is required by most mortgage lenders and protects only the lender’s financial interest in the property. It does not protect the buyer. An owner’s title insurance policy is optional but protects your equity and ownership rights for as long as you own the property. Without an owner’s policy, you could be responsible for legal fees or financial losses if a title issue arises. Why Title Insurance Matters in Vermont Vermont’s real estate landscape makes title insurance especially important. Many properties have long ownership histories that go back generations. Boundary lines may be based on old surveys or informal agreements. Rights of way and shared access roads are common, and some easements may be unrecorded or poorly documented. These factors increase the likelihood of title issues that may not be immediately obvious at the time of purchase. What Does Title Insurance Cost? Title insurance is typically a one-time premium paid at closing. The cost varies based on the purchase price but is relatively small compared to the protection it provides. There are no ongoing premiums. What Happens If You Do Not Have Title Insurance? If a title issue arises after closing and you do not have an owner’s policy, you may face legal costs to defend your ownership, loss of part of your property rights, or financial loss if another party has a valid claim. In some cases, ownership itself could be at risk. When Might You Consider Skipping It? Some buyers consider skipping title insurance when purchasing property from a close family member or when the property has a very recent and well-documented title history. Even in these situations, risks can still exist, and legal advice is important before deciding to go without coverage. The Bottom Line While title insurance is not required in Vermont, it is one of the most effective ways to protect your investment in real estate. For most buyers, especially those unfamiliar with the property’s history, an owner’s policy provides peace of mind and financial protection that far outweighs the cost. How Peet Law Group Can Help Peet Law Group guides buyers and sellers through every stage of the Vermont real estate process. This includes conducting thorough title searches, identifying and resolving title issues, advising on title insurance coverage, and handling closings efficiently and accurately. With offices in Williston and White River Junction, the firm focuses exclusively on Vermont real estate law and provides practical, experienced guidance tailored to each transaction. Frequently Asked Questions Do I need title insurance if I am paying cash? No, but it is still strongly recommended to protect your ownership rights. Does title insurance cover boundary disputes? It may cover certain disputes depending on the policy and circumstances. Is title insurance a one-time cost? Yes, it is paid once at closing and lasts as long as you own the property. Can title issues really happen after a closing? Yes. Some problems, such as fraud or undiscovered heirs, may only surface later. If you are buying or selling property in Vermont and have questions about title insurance, working with an experienced real estate attorney can help you avoid costly mistakes and protect your investment.
The Peet Law Group is proud to announce that it has once again been recognized as the Best Real Estate Law Firm in Vermont by Vermont Business Magazine’s prestigious Best of Business (BOB) Awards. This honor marks another consecutive win for the firm, continuing an unbroken streak that began in 2019. A Trusted Leader in Vermont Real Estate Law The BOB Awards are determined by the votes of Vermont business professionals, making this recognition especially meaningful. It reflects the confidence that clients, lenders, real estate professionals, and industry peers place in Peet Law Group year after year. Peet Law Group is dedicated exclusively to Vermont real estate law, providing comprehensive legal services across the entire state. The firm represents: • Buyers and sellers in residential and commercial transactions • Lenders and financial institutions • Real estate investors and developers • Property owners With offices in Williston and Hartford (White River Junction), the firm handles transactions and legal matters throughout Vermont, offering deep local knowledge combined with efficient, responsive service. Commitment to Excellence and Client Service Since its founding, Peet Law Group has built a reputation for: • Precision and attention to detail in real estate transactions • Clear communication and practical legal guidance • Reliable and timely closings • Strong relationships with Vermont’s real estate community Winning the BOB Award consecutively since 2019 highlights the firm’s continued commitment to delivering high-quality legal services in an ever-changing real estate landscape. Thank You to Our Clients and Partners This recognition would not be possible without the continued support of our clients and professional partners. We extend our sincere gratitude to: • Home buyers and sellers who trust us with important life decisions • Lenders and banks who rely on our experience and consistency • Realtors, brokers, and title professionals who collaborate with us every day Your confidence and partnership drive everything we do. Looking Ahead Peet Law Group is honored by this recognition and views it as both a milestone and a responsibility. We are proud of what we have accomplished and re-dedicated to supporting our clients with the same high level of service, responsiveness, and expertise that earned this award. As Vermont’s real estate market continues to evolve, Peet Law Group remains committed to being a trusted legal partner for clients across the state.