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.
If you're buying or selling a home in Vermont, you're likely already navigating a long checklist of tasks: finding the right property, arranging financing, coordinating inspections, and scheduling the closing. But one crucial decision that often gets overlooked is how your real estate attorney charges for their services. At the Peet Law Group, we believe in transparency, predictability, and value. That’s why we charge flat fees for virtually all residential real estate transactions. What Is a Flat Fee in a Real Estate Transaction? A flat fee is a predetermined, all-inclusive amount that your real estate attorney charges for handling your transaction from start to finish. Whether you’re buying or selling, this fee covers essential legal services such as: • Reviewing and explaining the purchase and sale contract • Examining and certifying title • Coordinating with lenders, agents, and other parties • Preparing closing documents • Attending and overseeing the closing This structure offers peace of mind because you know upfront what your legal fees will be—no surprises, no ticking clock. What Is an Hourly Rate? In contrast, some attorneys charge by the hour. This means every phone call, email, contract revision, or meeting could add to your final bill. Hourly billing can be unpredictable and stressful for clients, especially when unforeseen complications arise. At Peet Law Group, we only bill hourly in rare cases, such as when a transaction involves a highly complex title issue or a legal dispute between parties. These situations are the exception, not the rule. Advantages of Flat Fee Billing for Vermont Real Estate Transactions 1. Cost Predictability Flat fees let you plan your budget with confidence. You know exactly what you’re paying and what you’re getting in return. 2. Efficiency and Simplicity With a flat fee, our attorneys can focus entirely on helping you close the deal efficiently and accurately—not on watching the clock. 3. Full-Service Representation You get comprehensive legal support from start to finish, without worrying whether a phone call or question will increase your costs. 4. Better Communication Clients are often more comfortable reaching out with questions or concerns when they know they're not being billed by the minute. Why Choose Peet Law Group? With decades of experience in Vermont residential real estate law, the Peet Law Group offers straightforward, flat-fee pricing for nearly every home purchase or sale. Our pricing structure reflects our commitment to clarity, value, and professional service. We’re here to make your home buying or selling process as smooth and stress-free as possible. If you do encounter an unusual legal issue, we’ll discuss the scope and cost of any additional services up front—no surprises. Ready to Work with a Flat-Fee Real Estate Attorney in Vermont? If you’re buying or selling a home in Vermont and want clear, predictable pricing with experienced legal support, contact the Peet Law Group today. Let us help you close with confidence. Visit www.peetlaw.com to learn more or to schedule a consultation.
When purchasing a home in Vermont, one of the biggest financial decisions you’ll face is choosing between a fixed rate mortgage and a variable rate mortgage (also known as an adjustable rate mortgage, or ARM). While fixed rate mortgages offer stability, variable rate mortgages can offer lower initial costs — but with more uncertainty over time. What Is a Variable Rate Mortgage? A variable rate mortgage is a home loan where the interest rate can change periodically, based on market conditions. These loans typically start with a lower interest rate for an initial period — commonly 5, 7, or 10 years — and then adjust annually based on a benchmark rate such as the Secured Overnight Financing Rate (SOFR) or a U.S. Treasury index. For example, a 5/1 ARM has a fixed rate for the first five years, then adjusts once per year after that. By contrast, a fixed rate mortgage locks in a single interest rate for the entire life of the loan — usually 15, 20, or 30 years. The monthly principal and interest payments stay the same, regardless of market changes. Advantages of a Variable Rate Mortgage 1. Lower Initial Interest Rate: ARMs typically start with a lower rate than fixed mortgages, resulting in lower monthly payments for the initial term. 2. Short-Term Affordability: If you plan to sell or refinance before the adjustment period begins, you may benefit from the lower initial rate without facing future increases. 3. Potential for Lower Long-Term Costs: If interest rates stay the same or decrease after the initial fixed period, your total loan cost may be lower than with a fixed rate mortgage. Risks of a Variable Rate Mortgage 1. Uncertainty and Rate Increases: After the initial period, your interest rate could rise significantly, leading to much higher monthly payments. 2. Budgeting Challenges: The unpredictability of future payments can make long-term financial planning more difficult. 3. Payment Shock: If rates rise sharply, homeowners may experience a sudden and unaffordable jump in monthly mortgage costs. When Is a Variable Rate Mortgage a Good Idea? • Short-Term Homeownership Plans: If you plan to sell your home within 5–10 years, you may benefit from the lower initial rate without being affected by future adjustments. • Strong Income Growth Potential: If you expect your income to increase significantly in the near future, you may be better equipped to handle potential rate hikes later on. • Falling or Stable Interest Rate Environment: If interest rates are expected to decline or remain stable, an ARM could remain affordable even after it begins adjusting. When Is a Variable Rate Mortgage a Bad Idea? • Long-Term Homeownership: If you plan to stay in your home for more than 10 years, a fixed rate may offer more financial security. • Tight Monthly Budget: If your finances are stretched thin, even small rate increases could lead to payment stress or default risk. • Rising Interest Rate Environment: If rates are expected to climb, an ARM can become significantly more expensive over time. Final Thoughts At Peet Law Group, we understand that every Vermont homebuyer has unique financial goals. While variable rate mortgages offer potential savings, they also come with risks that require careful consideration. Before committing to any loan product, it’s essential to work with both a knowledgeable lender and a Vermont real estate attorney who can help you understand your obligations — and protect your interests throughout the process. If you're buying a home and want to ensure a smooth closing with clear legal guidance, contact Peet Law Group today. We’re here to help you make informed decisions from contract to closing.
If you're buying a home in Vermont with cash, you might assume the process is simple enough to skip hiring a real estate attorney. After all, there’s no lender involved, no mortgage paperwork to deal with, and fewer formalities—right? Not so fast. Even without a bank in the mix, a cash purchase still carries legal risks, due diligence responsibilities, and important decisions that can significantly affect your finances and property rights. In fact, the absence of a lender means it’s entirely up to you to ensure everything is in order—and that’s where your attorney becomes essential. Why Cash Buyers Still Need a Real Estate Attorney in Vermont 1. Title Searches and Hidden Problems Lenders typically require a title search to ensure the property has no liens, permit problems, or other ownership issues. When you pay cash, no one is forcing that step—but the risk doesn’t go away. An experienced Vermont real estate attorney will: • Conduct or review a full title search • Identify any legal defects, easements, or claims on the property • Help you purchase appropriate title insurance if desired Without this step, you could unknowingly buy a property with costly legal baggage. 2. Purchase and Sale Agreement Review In Vermont, real estate agents often use standard form contracts. These templates don’t always protect your interests—especially if you’re an investor or retiree with specific goals. An attorney can: • Customize or amend the agreement to match your needs • Clarify contingencies (like inspection or septic review) • Ensure deadlines, deposits, and legal obligations are clearly defined Skimming over these details can expose you to unnecessary risk or even litigation. 3. Closing Coordination and Document Preparation Even in cash deals, closings in Vermont involve multiple legal documents, including: • The deed • Transfer Tax forms • Smoke detector affidavits and • Closing statements Your attorney will draft or review all necessary documents, ensure compliance with Vermont real estate law, and coordinate with the seller, title company, and town clerk. 4. Local Compliance and Property Use Questions Cash buyers—especially out-of-state retirees and real estate investors—often need answers to Vermont-specific issues, such as: • Whether the property can be used as a short-term rental • If there are land use restrictions, covenants, or Act 250 implications • How Vermont’s property tax system will affect you post-sale An attorney who knows local rules can help you make informed, confident decisions before you sign. 5. Peace of Mind Legal mistakes in real estate aren’t just inconvenient—they can be very expensive. The cost of hiring a Vermont real estate attorney is typically modest compared to the value of the property—and the potential consequences of going without one. Bottom Line Yes, buying a home with cash may simplify the financing process—but it does not eliminate the legal complexity of a real estate transaction. Whether you're a retiree seeking a peaceful second home or an investor eyeing Vermont rental properties, working with a knowledgeable attorney ensures your purchase is secure, compliant, and aligned with your long-term goals. At Peet Law Group, we regularly represent cash buyers across Vermont—from first-time vacation home buyers to seasoned investors. We’d be happy to help you protect your investment and close with confidence.
When buying or selling a home in Vermont, most clients rely on both a real estate attorney and a licensed real estate agent. While their roles sometimes overlap, they serve distinctly different — and equally important — purposes in helping you navigate a successful transaction. At Peet Law Group, we often get asked, "Do I really need an attorney if I already have a realtor?" The short answer: yes. Here's why. The Realtor’s Role: Market Expertise and Transaction Coordination Your realtor is your guide to the real estate marketplace. Their job includes: • Helping you find a property or list your home • Providing comparative market analysis to determine a competitive listing or offer price • Coordinating showings and negotiations • Drafting the initial purchase and sale agreement • Scheduling inspections, appraisals, and other logistics • Serving as a communication bridge between buyer, seller, lender, and attorney Vermont realtors are well-trained in contracts and negotiations. However, they are not licensed to provide legal advice — nor can they interpret legal language in binding documents. That’s where your attorney comes in. The Attorney’s Role: Legal Oversight and Risk Mitigation In Vermont, real estate attorneys play a central role in every home purchase or sale. Unlike in some other states, attorneys here are not optional — they are a critical part of the transaction. Key services provided by your attorney include: • Reviewing or preparing the purchase and sale agreement • Negotiating legal terms, contingencies, and closing conditions • Conducting a full title search to ensure you’re receiving clear ownership • Resolving title defects, such as liens, encumbrances, or easements • Preparing the deed and closing documents • Handling the escrow account and transfer of funds • Attending and managing the closing on your behalf or in person When legal questions arise — whether about property rights, easements, probate issues, co-ownership, or zoning — only your attorney is authorized to give binding legal guidance. When Legal Advice Is Essential Even the most straightforward Vermont real estate transaction can raise legal questions. Here are some common scenarios when legal advice is not just helpful, but necessary: • The property is part of an estate or trust • You are buying with or selling to a friend or family member • There are known title issues, encroachments, or shared driveways • You’re selling property with tenants in place • You’re unsure how to handle repairs, inspection findings, or contract contingencies Your realtor may help identify these issues — but only an attorney can advise you on your legal exposure and the best way to protect yourself. A Team Approach: Working Together for Your Benefit At Peet Law Group, we believe the best outcomes come when realtors and attorneys work hand-in-hand. We frequently collaborate with real estate agents across Vermont, ensuring our clients receive the benefit of strong market guidance and thorough legal protection. Think of your realtor as the project manager, and your attorney as the legal strategist. When they work together, you stay informed, protected, and confident throughout the transaction.
Buying your first home is an exciting milestone—but it can also feel overwhelming. From negotiating offers to understanding legal documents, the process involves several steps and multiple professionals. At Peet Law Group, we work closely with first-time home buyers across Vermont to make the journey to homeownership smoother, safer, and legally sound. Here’s a comprehensive guide to help you understand the home buying process and how a real estate attorney plays a critical role. Step 1: Financial Pre-Approval Before you start house hunting, meet with a mortgage lender to determine how much home you can afford. The lender will assess your credit, income, and savings, then issue a pre-approval letter—a key document that shows sellers you're a serious buyer. Step 2: Hire a Real Estate Agent Next, choose a licensed Vermont real estate agent who understands your local market. Your agent will help you: • Find listings within your budget and preferences • Schedule showings • Prepare and negotiate offers • Navigate counteroffers and contingencies Step 3: Make an Offer and Sign a Purchase and Sale Agreement When you find the right property, your agent will help you make an offer. Once accepted, you'll enter into a Purchase and Sale Agreement (P&S)—a binding contract that outlines the price, terms, contingencies, and timelines. This is where a Vermont real estate attorney becomes essential. At Peet Law Group, we review (or draft) your P&S agreement to: • Ensure legal accuracy and protect your interests • Verify contingencies such as financing, inspections, or title conditions • Negotiate adjustments and deadlines as needed Step 4: Home Inspection and Due Diligence You'll typically have a few days to conduct a home inspection. A licensed inspector checks for structural, electrical, plumbing, and safety issues. If major defects are discovered, you may renegotiate the contract or walk away without penalty, depending on the terms. Other due diligence steps may include: • Testing for radon or water quality • Reviewing homeowner association (HOA) documents • Septic system inspection • Examining zoning and permit records Step 5: Secure Financing and Obtain a Commitment Letter While inspections are underway, your lender processes your loan application. You’ll submit documents like: • Tax returns • Pay stubs • Bank statements Once approved, you’ll receive a loan commitment letter, which confirms the lender's intent to fund your mortgage. Step 6: Title Search and Title Insurance The attorney’s office now conducts a title search to ensure that the seller has clear, marketable title to the property—free of liens, judgments, or ownership disputes. At Peet Law Group, we handle: • Title examination to uncover any legal or financial issues • Title insurance issuance for both lender and owner coverage • Clearing title defects, if any, prior to closing Step 7: The Closing Process Before closing day, your attorney coordinates with the lender, seller's attorney, and title company to prepare all legal and financial documents. These include: • The HUD-1 Settlement Statement or Closing Disclosure • The deed • The mortgage and promissory note At Peet Law Group, we: • Represent you at closing • Explain all documents before you sign • Collect and disburse funds • Record the deed and mortgage with the town or city clerk • Ensure you receive a final owner’s title insurance policy Bonus Tip: Don’t Skip Legal Counsel In Vermont, real estate attorneys play a hands-on role in residential closings. Unlike some states where title companies dominate the process, Vermont law and practice emphasize legal representation and independent title review. Hiring an experienced Vermont real estate attorney is one of the smartest moves a first-time home buyer can make. Thinking of Buying a Home in Vermont? At Peet Law Group, we guide first-time buyers through every legal step of the transaction. From drafting and reviewing contracts to resolving title issues and closing the deal—we’re your trusted advocate in Vermont real estate. Contact us today at www.peetlaw.com to schedule your first-time buyer consultation.
Owner’s title insurance is a one-time purchase that protects your legal ownership of the property for as long as you hold an interest in it. It covers unexpected issues that may arise with your home’s title—issues that might not have been discovered during the title search. These can include: • Undisclosed or missing heirs who claim ownership after the sale • Errors or omissions in past deeds or public records • Forged documents or fraudulent transfers in the chain of title • Unknown liens, including unpaid taxes or contractor bills • Boundary or access disputes not revealed in surveys Even with the most thorough title search conducted by experienced Vermont real estate attorneys and title professionals, some risks remain hidden. Owner’s title insurance gives you peace of mind that your investment is protected. Lender’s Title Insurance is Not Protection for You It’s important to understand that lender’s title insurance is only for the benefit of the bank or mortgage company. If a title issue arises that affects your property’s ownership, the lender’s policy will not cover your legal fees, losses, or defense. Only an owner’s policy ensures that you, as the buyer, are protected Why It's Especially Important in Vermont Vermont’s real estate system is unique. Unlike many other states that use centralized title plants or guarantee title through the state, Vermont relies on local land records in separate towns and cities. Each municipality maintains its own handwritten or scanned land records, some dating back centuries. This decentralized system increases the chance of undetected title issues. Having a local real estate law firm like Peet Law Group—who understands the intricacies of Vermont’s land records—is essential. Still, even the most diligent title review can’t eliminate every risk. Owner’s title insurance fills that gap. One-Time Cost, Lifetime Coverage Owner’s title insurance is a one-time premium paid at closing, based on the home’s purchase price. In return, you receive lifetime coverage. Considering the potential legal costs and risks of an uncovered title issue, the cost of an owner’s policy is a small price to pay for long-term protection. Let Peet Law Group Help You Close with Confidence At Peet Law Group, we help Vermont home buyers navigate every step of the real estate closing process—from title search and contract review to issuing title insurance and final settlement. We work with title insurance underwriters to provide owner’s policies tailored to your transaction. Contact Peet Law Group today to learn more about how an owner’s title insurance policy can safeguard your Vermont home purchase—and your peace of mind.
We are proud to share that Peet Law Group has been named the Best Real Estate Law Firm in Vermont by Vermont Business Magazine in its 2025 Best of Business Awards. This recognition is an incredible honor, and we are deeply grateful to our clients, industry partners, colleagues, and the readers of Vermont Business Magazine for your continued trust and support. At Peet Law Group, we know that buying or selling a home is one of the most important transactions in a person's life. That’s why we’ve built our practice around providing dedicated, knowledgeable, and responsive legal services tailored to Vermont’s unique real estate landscape. This award affirms our ongoing commitment to serving Vermont families, real estate professionals, and lenders with care and excellence. Thank You to Our Community We want to take a moment to thank: • Our clients – for placing your trust in us during such a significant milestone in your life; • Our industry partners – including real estate agents, lenders, title insurers, and surveyors who collaborate with us every day to make transactions smooth and successful; • Our colleagues in the legal community – for your shared commitment to professionalism and client service; and • The readers of Vermont Business Magazine – for your votes and confidence in the work we do across the Green Mountain State. What We Do: Residential Real Estate Services As a Vermont residential real estate law firm, we focus on every step of the closing process, offering a full suite of services for buyers, sellers, and lenders. Our services include: • Title searches and resolving title issues; • Title insurance issuance and underwriting; • Purchase and sale contract review and negotiation; • Real estate closings for both residential homes and vacation properties; • Representation of buyers and sellers throughout the transaction; • Deed preparation and property transfers; • Coordination with local banks, Credit Unions and mortgage lenders; and • Legal guidance for out-of-state clients purchasing or selling Vermont property. Whether you’re a first-time homebuyer in Burlington, closing on a vacation cabin in the Northeast Kingdom, or selling a longtime family home in Rutland, our team is here to help. Local Knowledge, Personalized Attention What sets Peet Law Group apart is our deep-rooted knowledge of Vermont real estate law and our highly responsive client service. Our attorneys and experienced real estate paralegals live and work in the same communities we serve, and we understand the nuances of Vermont’s towns, permitting rules, title issues, and property tax concerns. We pride ourselves on being approachable, thorough, and attentive—whether you’re closing in two weeks or just starting to plan a future purchase. If you’re buying, selling, or refinancing real estate in Vermont, let our award-winning team guide you through the process with confidence. To learn more about how we can help or to schedule a consultation, visit www.peetlaw.com or call us today.
If you're planning to buy or sell a home in Vermont, you may be wondering whether you really need to hire a Real Estate Agent. At Peet Law Group, we work closely with Real Estate Agents across the state and see firsthand the value they bring to both buyers and sellers in residential real estate transactions. From expertly marketing your property to managing transaction details and coordinating with your real estate attorney, a good Realtor can make the entire process smoother and more successful. What Does a Real Estate Agent Actually Do? Real Estate Agents are usually Realtors who are licensed real estate professionals and are members of the National Association of REALTORS®. Realtors must follow a strict code of ethics. In Vermont, Realtors play a crucial role in helping clients navigate the unique features of our local real estate market, including rural property issues, septic and water systems, and local permitting requirements. Here are some of the key services a Real Estate Agent or Realtor provides: For Sellers: 1. Pricing Strategy & Market Analysis A Realtor will perform a comparative market analysis (CMA) to help you price your home competitively, taking into account recent sales, local demand, and unique property features. 2. Professional Marketing Realtors market homes through a wide range of channels: • MLS (Multiple Listing Service) • Online listings (Zillow, Realtor.com, etc.) • Social media • Email campaigns • Open houses and private showings • Networking with other agents These strategies significantly boost your home’s visibility and reach qualified buyers. 3. Staging & Presentation Advice Realtors help you prepare your home for the market by offering suggestions on repairs, staging, and curb appeal to attract buyers. For Buyers: 1. Access to Listings A Realtor has access to up-to-date MLS listings and can identify properties that meet your criteria, sometimes even before they’re officially on the market. 2. Local Knowledge In Vermont, issues like private roads, deeded water access, and Act 250 regulations can complicate transactions. Realtors are familiar with local nuances and can help you avoid pitfalls. 3. Negotiation Skills Whether you're buying or selling, a Realtor helps negotiate the best price and terms—based on comparable sales and their experience with local market trends. Transaction Management Benefits Real estate deals involve many moving parts: • Offers and counteroffers • Purchase and sale contracts • Contingencies (home inspection, financing, septic inspections) • Deadlines and disclosures • Title searches and property surveys A Realtor tracks these details and coordinates communication among all parties, including inspectors, lenders, and attorneys. This reduces the risk of missed deadlines or misunderstandings that could delay or jeopardize the closing. How Realtors Work with Real Estate Attorneys In Vermont, attorneys play a key role in real estate closings, particularly in preparing and reviewing legal documents, performing title searches, and managing funds through their escrow accounts. The collaboration between your Realtor and your attorney is vital to a smooth transaction. Here's how the partnership typically works: • Contract Coordination: Once an offer is accepted, the Realtor sends the fully executed purchase and sale contract to the attorney for review. • Document Collection: Realtors often assist in gathering necessary documents for the attorney, such as property disclosures or prior deeds. • Scheduling: Realtors help coordinate inspections, appraisals, and final walk-throughs, keeping your attorney informed of important dates. • Problem-Solving: If issues arise—such as title defects or repair negotiations—your Realtor and attorney work together to resolve them and protect your interests. Conclusion Working with a Realtor when buying or selling a home in Vermont offers numerous benefits, from marketing expertise and negotiation skills to transaction management and collaboration with your attorney. At Peet Law Group, we value the important role Realtors play and work seamlessly with them to ensure your home purchase or sale goes as smoothly as possible. If you’re preparing to enter the Vermont real estate market and have questions about legal representation, contact us today at www.peetlaw.com or call us to schedule a consultation. We’re here to guide you through every step of the closing process.
Understanding the Seller’s Property Information Report (SPIR) in Vermont Real Estate Transactions Why Full Disclosure Benefits Both Buyers and Sellers In Vermont, selling a home involves several important disclosures, one of which is the Seller’s Property Information Report (SPIR). This document provides potential buyers with crucial details about the property's condition and history. While Vermont law does not mandate that sellers complete a SPIR, many real estate professionals strongly encourage it as a best practice for a transparent and smooth transaction. What Is a Seller’s Property Information Report (SPIR)? The SPIR is a standardized form in Vermont used by home sellers to disclose material facts about the condition of their property. It provides buyers with a clear picture of known defects, past repairs, and other relevant property details, helping them make an informed purchasing decision. What Does a SPIR Include? A typical SPIR covers various aspects of the property, including: • Structural Components – Information about the foundation, roof, walls, and any known defects or repairs. • Utilities and Systems – Details about the plumbing, electrical, heating, and cooling systems, including their age and functionality. • Water and Septic Systems – Information about the type of water supply (private well or municipal) and any septic system specifics, including past maintenance. • Environmental and Health Hazards – Disclosure of radon levels, lead paint, asbestos, mold, or other known environmental risks. • Pest Issues – History of infestations such as termites, carpenter ants, or rodents. • Legal and Zoning Matters – Information regarding boundary disputes, easements, encroachments, or homeowner association (HOA) obligations. • Past Repairs and Renovations – Disclosure of significant work done on the property, including whether the necessary permits were obtained. When Is the SPIR Completed and Presented? Sellers typically complete the SPIR early in the listing process, ideally before the property is actively marketed. Real estate agents often advise sellers to fill out the form honestly and accurately to avoid future legal complications. The completed report is then provided to prospective buyers when they express serious interest in the property, often before submitting an offer. Why Is the SPIR Important for Both Buyers and Sellers? Benefits for Buyers • Informed Decision-Making – Buyers gain a clearer understanding of the property's condition before making a financial commitment. • Reduced Surprises – Knowing about potential issues beforehand allows buyers to budget for future repairs or negotiate contingencies in their offer. • Legal Protection – If a seller provides inaccurate or misleading information, buyers may have legal recourse. Benefits for Sellers • Minimizing Legal Risk – Honest and full disclosure helps prevent accusations of misrepresentation, reducing the likelihood of future disputes or lawsuits. • Smoother Negotiations – A well-documented property history can foster buyer confidence and lead to a quicker, more straightforward sale. • Building Trust – Transparency enhances credibility with potential buyers, making them more likely to proceed with the purchase. Conclusion While Vermont does not legally require sellers to complete a SPIR, doing so is a prudent step in any real estate transaction. Providing a detailed and accurate SPIR can help facilitate a smoother sale, protect both parties from future disputes, and create an atmosphere of trust between buyers and sellers. If you are considering selling your Vermont home, consulting with a knowledgeable real estate attorney or agent can ensure you complete the SPIR correctly and in your best interest.
A Power of Attorney (POA) is a legal document that allows one person (the "principal") to grant another person (the "agent" or "attorney-in-fact") the authority to act on their behalf in legal and financial matters. In real estate transactions, a POA can be a useful tool for both buyers and sellers who are unable to attend a closing or sign documents in person. However, using a POA in a real estate deal comes with certain requirements and risks that should be carefully considered. How Buyers and Sellers Can Use a Power of Attorney A POA can be particularly helpful in the following real estate situations: For Sellers: • If a seller is out of town or unavailable on the closing date, they can appoint an agent to sign the necessary paperwork on their behalf. • A POA can be used when a property owner is incapacitated and needs a trusted person to handle the sale. • Investors or property managers who own multiple properties can use a POA to authorize an agent to handle sales and sign documents without their direct involvement. For Buyers: • Buyers who are relocating and cannot be physically present for closing can use a POA to designate someone to finalize the transaction. • If a buyer is in the military or traveling internationally, a POA allows a trusted individual to act on their behalf. • Some investors use a POA to have an agent manage multiple purchases without needing to be present. Lender Approval for Using a Power of Attorney to Sign Loan Documents When financing a property purchase, lenders often require additional scrutiny when a POA is involved. Mortgage lenders typically have strict guidelines regarding the use of a POA, including: • Prior Approval: Many lenders require advance approval before allowing a POA to be used for loan documents. • Specificity: The POA must clearly specify the agent’s authority to sign mortgage documents, promissory notes, and other required paperwork. • Notarization and Witnesses: Lenders may require that the POA be notarized and witnessed to prevent fraud. • Original Copy Requirement: Some lenders will only accept an original POA document, not a photocopy. • Limited vs. General POA: A lender may require a limited POA, which grants authority solely for the real estate transaction, rather than a broad general POA. Because each lender has different policies, it is crucial to confirm with the lender well in advance whether a POA will be accepted for signing loan documents. Risks Associated with Using a Power of Attorney in Real Estate Transactions While a POA can be convenient, it also presents certain risks, including: 1. Seller Impersonation & Fraud One of the biggest concerns with POAs in real estate transactions is fraud, particularly seller impersonation. In some cases, fraudsters have used forged or fraudulent POAs to sell properties without the rightful owner’s knowledge. To mitigate this risk: • Ensure the POA is properly executed and notarized. • Verify the identity of the principal and agent before accepting a POA. • Work with a reputable title company or attorney who can confirm the legitimacy of the POA. 2. Unauthorized or Unintended Transactions A poorly drafted POA may give the agent more power than the principal intended. For example, an agent with broad authority under a general POA could transfer property or take actions the principal did not anticipate. To prevent this: • Use a limited POA that only grants authority for a specific transaction. • Clearly define the agent’s powers and restrictions in the POA document. 3. Lender Rejection Even if a POA is legally valid, a lender may still reject it, delaying the closing process. Buyers should check with the lender early in the transaction to ensure compliance. 4. Potential Challenges in Court If a dispute arises over a transaction conducted via POA, a court may review whether the agent acted in the principal’s best interest. This can lead to legal complications and potential voiding of the transaction if fraud or misrepresentation is suspected. Best Practices When Using a Power of Attorney for Real Estate Transactions To minimize risks and ensure a smooth transaction, consider the following best practices: • Draft a POA with an experienced real estate attorney to ensure it meets legal and lender requirements. • Use a Limited POA that is specific to the transaction rather than a broad general POA. • Have the POA notarized and witnessed to increase its legitimacy. • Confirm lender acceptance in advance to avoid delays or denials at closing. • Verify the identity of the agent to prevent fraud or unauthorized transactions. • Work with a reputable attorney who understands POA transactions and can assist with due diligence. Conclusion A Power of Attorney can be a valuable tool for buyers and sellers who need flexibility in their real estate transactions. However, it is essential to ensure that the POA complies with lender requirements, is properly drafted, and does not expose the principal to unnecessary risks. Consulting with an experienced real estate attorney can help navigate these issues and ensure a secure and successful transaction. If you have questions about using a Power of Attorney in a Vermont real estate transaction, contact our office today for guidance.