Key Differences from Other States You Should Know
Are you planning to move to Vermont and buy a home? Whether you're relocating for work, retiring to the Green Mountains, or investing in a second home, it's important to know that Vermont's home purchase process differs significantly from what you may be used to in other states.
As experienced Vermont real estate attorneys at the Peet Law Group, we regularly work with buyers and sellers from out of state. Here's what makes Vermont unique
—and what you need to know before closing on a property here.
Unlike many states where title companies take the lead in handling closings, Vermont is an attorney state. That means licensed attorneys—not title agencies—conduct title searches, prepare closing documents, disburse funds, and record deeds.
In Vermont:
• A buyer's attorney performs the title search and ensures clear title.
• The seller’s attorney usually prepares the deed, transfer tax forms and disclosures.
• Attorneys handle the closing process from start to finish.
This system provides greater legal protection for both parties, but it also means you’ll need to hire an attorney early in the process.
Vermont rules for attorneys require that the buyer and seller be represented by separate attorneys to avoid any conflicts of interest. This differs from some states where a single attorney or title company can represent both parties in a transaction.
The Vermont Property Transfer Tax is typically paid by the buyer, not the seller. This surprises many out-of-state buyers, especially those coming from states where the seller pays the transfer tax.
Unlike most states that record real estate transactions at the county level, Vermont records deeds at the local town or city clerk’s office.
Each town maintains its own land records. That means:
• Title searches must be conducted individually in the specific town or city where the property is located.
• Recorded documents are not part of a centralized statewide or county database.
This system requires local knowledge, and it's another reason why hiring a Vermont-based real estate attorney is essential.
In Vermont, there is no traditional escrow process as seen in many western states. Instead:
• The buyer’s attorney holds deposits in a trust (IOLTA) account.
• The closing typically happens in-person or via mail with funds disbursed on closing day.
This streamlined approach often leads to quicker closings, but it also puts more responsibility on the attorneys to ensure all contingencies are met and funds are handled properly.
For buyers coming from urban areas, it’s important to know that many Vermont homes rely on private septic systems and wells rather than municipal services. These systems require special inspections and contingency planning in the purchase contract. At Peet Law Group, we help buyers include proper contingencies and inspections to avoid costly surprises.
Purchasing real estate in Vermont can be smooth and rewarding—with the right legal guidance. At Peet Law Group, we’ve helped thousands of buyers and sellers navigate Vermont’s unique real estate process with confidence.
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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.