Essential Legal Services Every First-Time Home Buyer in Vermont Should Understand

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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.

Boundary issues are one of the most common and costly problems affecting Vermont real estate. Whether it is an old stone wall, a misplaced fence, or conflicting surveys, uncertainty about property lines can delay sales, create disputes, and reduce property value. A boundary line confirmation agreement is one of the most effective legal tools available to resolve these issues permanently. What Is a Boundary Line Confirmation Agreement? A boundary line confirmation agreement is a written legal agreement between neighboring property owners that establishes the exact location of a shared boundary line. Instead of litigating or continuing uncertainty, the parties agree: • Where the boundary line is located • That the agreed line is binding on both properties • That the agreement will be recorded in the land records Once recorded, the agreement becomes part of the chain of title for both properties. When Do You Need Boundary Line Agreement? Boundary line confirmation agreements are commonly used in Vermont when: • Two surveys show conflicting boundary lines • A fence, driveway, or structure crosses a property line • Old deeds contain vague or inconsistent descriptions • A stone wall or natural feature has been treated as the boundary for many years • A buyer or title company raises a boundary concern before closing These situations are especially common with older rural properties, where descriptions may rely on outdated landmarks. Why Not Just Rely on a Survey? A survey is important, but it does not always solve the problem. A surveyor provides an opinion of where the boundary is located based on available evidence. However: • Different surveys may reach different conclusions • Historical use of land may conflict with surveyed lines • Title companies may still require resolution before insuring A boundary line confirmation agreement resolves the issue legally and permanently, rather than leaving it open to interpretation. How the Process Works in Vermont 1. Identify the Issue The parties, often with their attorneys, identify the uncertainty or dispute. 2. Obtain a Survey (if needed) A licensed surveyor may be hired to map the boundary and provide a clear reference. 3. Negotiate the Boundary Line The neighbors agree on a specific boundary location, sometimes as a compromise. 4. Obtain permits if the boundary line is being moved If a boundary line is being moved as part of a compromise rather than confirming an existing line, municipal and state permits may be required. 5. Draft the Agreement A Vermont real estate attorney prepares a formal agreement describing the boundary. 6. Sign and Record The agreement is signed by all parties and recorded in the town land records. Key Legal Benefits A properly drafted and recorded boundary line confirmation agreement can: • Prevent future disputes between neighbors • Satisfy title insurance requirements • Allow a real estate transaction to proceed • Clarify ownership for future buyers • Avoid costly litigation In many cases, this is a far more efficient and cost-effective solution than going to court. Important Considerations It Must Be Precise The agreement should include: • A clear legal description • Reference to a survey or plan • Language binding future owners Lender Approval May Be Required If there is a mortgage on the property, lender consent may be necessary. It Should Be Recorded Unrecorded agreements may not protect against future claims. It Is Not the Same as Adverse Possession While related, this is a voluntary agreement, not a legal claim based on long-term use. Common Vermont Scenarios Boundary line agreements are frequently used in situations like: • A neighbor’s driveway crosses onto your land • A barn or shed encroaches over the line • Lakefront properties with unclear lot divisions • Wooded land where boundaries were never clearly marked Why This Matters for Buyers and Sellers If you are buying or selling property in Vermont, unresolved boundary issues can: • Delay closing • Create financing problems • Lead to post-closing disputes Addressing the issue with a boundary line confirmation agreement before closing can save significant time, money, and stress. Boundary line confirmation agreements are a practical and effective way to resolve uncertainty and protect property rights in Vermont. Given the age and rural nature of many properties in the state, these agreements are often essential to ensure clear and marketable title. If you are facing a boundary issue or your transaction has raised concerns, working with an experienced Vermont real estate attorney can help you reach a clear and lasting solution.

Buying a home or property in Vermont is an exciting process, but not every transaction makes it to the closing table. National data shows that roughly 7% to 14% of home purchase agreements fail before closing, depending on market conditions. In some months, that is nearly 1 out of every 7 real estate transactions falling apart. The good news is that many of these failed deals are preventable. If you are under contract to purchase property in Vermont, here are practical steps you can take to keep your transaction on track. Protect Your Financing From Day One Financing issues are one of the leading causes of failed real estate transactions. Even after pre-approval, your lender will continue reviewing your financial situation right up until closing. To avoid problems: • Do not quit or change jobs during the transaction • Avoid taking on new debt such as car loans or credit cards • Do not make large purchases • Make all payments on time to protect your credit score A last-minute change in your financial profile can result in a loan denial just days before closing. Respond Quickly to Your Lender Mortgage underwriting moves quickly and requires detailed documentation. Delays often happen because buyers do not respond fast enough. To stay on track: • Submit requested documents promptly • Monitor your email and voicemail daily • Provide complete and accurate information A slow response can delay closing or cause financing deadlines to be missed. Be Reasonable About Inspection Issues Home inspections frequently uncover issues, especially with older Vermont properties. How you respond matters. Instead of expecting a perfect property: • Focus on significant defects rather than minor cosmetic concerns • Be open to repair credits or negotiated solutions • Understand that compromise is often necessary Transactions commonly fall apart when parties take inflexible positions after inspections. Stay on Schedule for Your Closing Date Your purchase contract includes important deadlines, including the closing date. Missing deadlines can create serious consequences. To stay organized: • Track contingency deadlines carefully • Coordinate regularly with your lender, attorney, and agent • Be prepared with funds for closing Failure to close on time can put your deposit at risk or allow the seller to cancel the agreement. Engage a Vermont Real Estate Attorney Early One of the most effective ways to prevent a transaction from falling apart is to involve a real estate attorney early in the process. An experienced Vermont attorney will: • Conduct the title search promptly • Identify title defects, liens, or other issues • Resolve problems before they delay closing Waiting too long to address title issues can leave insufficient time to fix them. Identify and Resolve Title Issues Early Title problems are a common but often overlooked cause of failed transactions. These may include: • Unknown liens or unpaid property taxes • Boundary disputes or encroachments • Errors in prior deeds Addressing these issues early allows time for resolution and avoids last-minute surprises. Avoid Last-Minute Changes Consistency is critical once you are under contract. Avoid making changes such as: • Switching lenders • Changing how you will take title • Making unexplained large deposits These changes can trigger delays or additional scrutiny that jeopardizes closing. Plan Ahead for Insurance and Closing Logistics Seemingly small details can delay a closing if overlooked. Make sure you: • Secure homeowner’s insurance in advance • Arrange for utility transfers • Provide any required documentation to your lender • Verifying with your bank or financial institution in advance how your funds can be transferred quickly and safely to the closing attorney. Missing documentation can delay funding and push back your closing date. Communicate Clearly With Your Team A Vermont real estate transaction involves multiple parties working together. Miscommunication is a frequent cause of delays. Stay proactive by: • Asking questions early • Confirming deadlines • Keeping your attorney, lender and Realtor informed of any issues Clear communication helps prevent small problems from escalating. Work With Experienced Vermont Professionals Local experience matters, especially in Vermont where properties often involve unique issues such as rights-of-way, rural access, or older title histories. Loan officers, Realtors and attorneys located in Vermont will know local laws and customs allowing for a smooth transaction. Working with knowledgeable Vermont professionals can significantly reduce the risk of your transaction falling apart. The Bottom Line A significant percentage of real estate transactions nationwide fail before closing, but most of these failures are preventable. By protecting your financing, staying responsive, being flexible during inspections, and addressing legal issues early, you can dramatically improve your chances of reaching a successful closing. Need Help Keeping Your Vermont Real Estate Transaction on Track? Peet Law Group assists buyers throughout Vermont with title searches, resolving legal issues, and guiding transactions from contract to closing. Engaging experienced legal counsel early in the process can help prevent delays, avoid surprises, and ensure your purchase reaches the closing table.

Beginning March 1, 2026, new federal anti–money laundering regulations issued by the Financial Crimes Enforcement Network (FinCEN) will require reporting of certain residential real estate transactions. These rules are commonly referred to as the FinCEN Residential Real Estate Reporting Rule. The rule is designed to combat money laundering and illicit financial activity in the real estate market by requiring disclosure of the beneficial owners behind certain property purchases made without institutional financing. For buyers, sellers, and real estate professionals in Vermont, these requirements may add a new step to the closing process. At Peet Law Group, we are helping clients understand how the rule works and how to avoid delays at closing. When the FinCEN Reporting Rule Applies A report will generally be required when all three of the following conditions are present. 1. The Property Is Residential Real Estate The rule applies to most residential property types, including: • 1–4 family homes • Condominiums • Cooperative units • Vacant land intended for residential development Commercial real estate transactions are not covered by this rule. 2. The Buyer Is a Legal Entity or Trust Reporting requirements apply when the buyer is not an individual but instead a legal entity or trust. Examples include: • Limited Liability Companies (LLCs) • Corporations • Partnerships • Trusts These structures are commonly used for investment or liability protection purposes. The new rule requires disclosure of the beneficial owners behind these entities when certain transactions occur. 3. The Purchase Has No Institutional Financing The rule primarily targets all-cash purchases. A transaction will likely trigger reporting if there is no loan from a traditional bank or mortgage lender. Transactions may still be considered “non-financed” under the rule even if there is: • Private financing • Hard-money loans • Seller financing Because these arrangements do not involve a regulated financial institution performing anti-money-laundering checks, FinCEN requires the closing professional to report the transaction. What Information Must Be Reported When a transaction triggers the rule, information about the beneficial owners of the purchasing entity must be reported to FinCEN. Beneficial ownership information generally includes identifying details about the individuals who ultimately own or control the entity purchasing the property. Seller information required for reporting is relatively limited, but sellers should still be prepared to provide basic identifying details to the closing agent if the rule applies. This information must be gathered before closing so that the required report can be submitted to FinCEN. Who Is Responsible for Filing the Report In most Vermont real estate transactions, the closing attorney will be responsible for preparing and submitting the FinCEN report. However, both the buyer and seller must cooperate in providing the required information. Without timely disclosure, the closing process could be delayed. Because of this, real estate agents should notify their clients early in the transaction if the purchase may trigger FinCEN reporting. Contract Language and Timing Considerations To avoid last-minute problems, it is advisable for purchase contracts to include a provision requiring both parties to provide the necessary FinCEN information to the closing agent at least two business days before closing. Including this requirement in the contract helps ensure that: • The closing attorney has sufficient time to prepare the report • The transaction is not delayed at the closing table • Both parties understand their obligations under federal law Real estate professionals may wish to incorporate a FinCEN reporting addendum into their purchase and sale agreements. How the Rule Affects Vermont Real Estate Transactions Many Vermont transactions will not trigger reporting under the rule. For example, purchases by individuals using a conventional mortgage will typically fall outside the requirements. However, reporting is more likely in transactions involving: • Investment properties purchased through LLCs • Cash purchases of vacation homes or second homes • Purchases of residential development land through entities or trusts Given the prevalence of LLC ownership in real estate investment, it is important for buyers and sellers to understand whether the rule applies before they reach the closing stage. Guidance for Buyers, Sellers, and Realtors If you are involved in a residential transaction where the buyer is an entity and there is no traditional financing, it is wise to address FinCEN reporting early in the process. Buyers should be prepared to disclose beneficial ownership information. Sellers should be aware that the transaction may involve additional federal reporting requirements. Working with an experienced real estate attorney can help ensure compliance with the new rule while keeping the transaction moving smoothly. Vermont Real Estate Closing Attorneys Peet Law Group assists buyers, sellers, and real estate professionals throughout Vermont with residential and commercial closings. Our attorneys monitor new regulatory developments such as the FinCEN Residential Real Estate Reporting Rule and help clients navigate the additional requirements. If you have questions about how the new FinCEN reporting rule may affect your transaction, contact Peet Law Group to discuss your upcoming closing .

Buying a home in Vermont can move quickly, especially in competitive markets where multiple buyers may be interested in the same property. When a buyer wants to secure a property before another offer is accepted, there may not be enough time for an attorney to fully review the purchase contract before the offer is submitted. One useful solution is an attorney review contingency. This provision allows a buyer to move forward quickly while still preserving the right to have a Vermont real estate attorney review the contract after it has been signed. For buyers and sellers involved in Vermont real estate transactions, understanding how an attorney review contingency works can help protect their legal interests while still allowing them to compete effectively in a fast moving market. What Is an Attorney Review Contingency? An attorney review contingency is a clause in a real estate purchase contract that gives one or both parties the opportunity to have the agreement reviewed by an attorney after it has been signed. During the attorney review period, the attorney may: • approve the contract • recommend modifications • negotiate changes with the other party • advise the client to cancel the agreement if necessary If the contract is not approved during the review period, the buyer typically has the right to terminate the agreement and receive a refund of the deposit. This contingency allows buyers to move forward with an offer quickly while still ensuring that a qualified Vermont real estate attorney reviews the legal terms of the transaction. Why an Attorney Review Contingency Can Be Helpful in Competitive Situations In some Vermont real estate markets, desirable homes receive multiple offers shortly after being listed. When this happens, buyers often feel pressure to submit an offer quickly. Waiting for a full attorney review before making an offer may take valuable time. By the time the contract is reviewed, the seller may have already accepted another buyer’s offer. An attorney review contingency can solve this problem. Instead of delaying the offer, the buyer can: • submit an offer immediately • get the property under contract • lock in the seller before another buyer does Once the contract is signed, the buyer’s attorney can review the agreement during the contingency period. If legal issues arise, the attorney can request changes or advise the buyer on whether to proceed. This approach allows buyers to compete effectively while still protecting their legal rights. How an Attorney Review Contingency Works Although the exact wording may vary, the process usually follows these general steps: 1. The Buyer Submits an Offer The buyer submits a purchase and sale contract that includes an attorney review contingency clause. 2. The Seller Accepts the Offer Once the seller signs the contract, the property is considered under contract. At this point, the seller generally cannot accept another offer while the contract remains in effect. 3. The Attorney Review Period Begins The contract typically provides a short period for review, often a few days. During this time the buyer’s attorney reviews the contract and related documents. The attorney may review issues such as: • the purchase and sale contract • property disclosures • deadlines and contingencies • financing provisions • inspection rights 4. The Attorney Approves or Requests Changes After reviewing the contract, the attorney may: • approve the agreement as written • recommend revisions • negotiate modifications with the seller’s side If serious issues are discovered and cannot be resolved, the buyer may be able to terminate the contract under the contingency. Common Issues Attorneys Review A Vermont real estate attorney reviewing a purchase contract will often look closely at important legal and financial details, including: • financing contingencies • home inspection provisions • deposit terms • closing timelines • title requirements • property access and rights of way • personal property included in the sale Even contracts prepared by real estate professionals can benefit from legal review because every property and transaction is different. Why Buyers Should Involve a Vermont Real Estate Attorney Buying real estate is one of the most significant financial transactions most people will ever make. An experienced Vermont real estate attorney can help ensure that the buyer’s interests are protected throughout the transaction. Having an attorney involved early in the process can help avoid costly problems later. Vermont Real Estate Closings and Legal Guidance At Peet Law Group, our attorneys represent buyers and sellers throughout Vermont in residential real estate transactions. Our firm regularly assists clients with: • Vermont real estate closings • purchase and sale agreement review • title examinations and title opinions • resolving title issues • guidance for buyers and sellers If you are planning to buy or sell real estate in Vermont and have questions about an attorney review contingency or any other aspect of the transaction, our attorneys can help guide you through the process. Peet Law Group Vermont Real Estate Attorneys Offices in Williston and Hartford (White River Junction), Vermont Learn more at: https://www.peetlaw.com

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