Vermont's Property Transfer Tax Explained: Who Pays More—and Who Pays Less

A deed is a written document that transfers title (ownership) of real estate from a seller (grantor) to a buyer (grantee). For a deed to be valid in Vermont, it must be in writing, signed by the grantor, and delivered to and accepted by the grantee. It must also be recorded in the land records of the town where the property is located to give notice to third parties. Vermont recognizes several types of deeds, each offering different levels of protection and responsibility. 1. Warranty Deed (General Warranty Deed) This is the most protective type of deed for the buyer. A warranty deed guarantees that the seller holds clear title to the property and has the legal right to sell it. It also includes warranties against any defects in title, even if those defects arose before the seller owned the property. Key features: • Seller guarantees good and clear title. • Seller promises to defend the title against all claims. • Used in most residential real estate closings in Vermont when title insurance is not being issued. 2. Quitclaim Deed A quitclaim deed conveys whatever interest the grantor has in the property, but with no warranties. That means the grantor is not making any promises about whether the title is clear or even if they truly own the property. Quitclaim deeds are typically used for: • Transferring property between family members or into a trust or LLC. • Clearing up title issues (such as correcting a name on a prior deed). • Transferring property as part of a divorce settlement. Because there are no guarantees, title insurance is strongly recommended when accepting property via quitclaim deed. 3. Limited Warranty Deed (Special Warranty Deed) Less common in Vermont, a limited warranty deed includes some guarantees—but only against defects that arose during the time the grantor owned the property. It does not protect the buyer against any earlier issues with title. These deeds are sometimes used in: • Commercial transactions. • Sales by corporate entities or fiduciaries who want to limit liability. 4. Executor’s or Administrator’s Deed Used when the property is being transferred from a deceased person’s estate. This deed is executed by the executor or administrator of the estate, not the decedent. Key considerations: • Usually offered as a limited warranty deed or quitclaim deed. • Common in probate sales or where a property passes through a will or intestate succession. 5. Trustee’s Deed When a property is held in a trust and sold or transferred by the trustee, a trustee’s deed is used. This document will typically include limited warranties, if any, and often recites the trustee’s authority under the trust instrument. Choosing the Right Deed Each type of deed carries different legal implications and potential risks. If you’re buying, selling, or transferring property in Vermont, it’s essential to understand which type of deed is being used and what it means for your rights. At Peet Law Group, we guide clients through every step of the closing process—including preparing and reviewing deeds—so they can move forward with peace of mind. Need help with a Vermont deed or property transfer? Contact the Peet Law Group today to speak with an experienced real estate attorney. With offices in Williston and White River Junction, we represent clients throughout Vermont in all aspects of residential and commercial real estate law.

At the Peet Law Group, we’ve noticed a new trend taking shape in Vermont’s real estate market: members of Generation Z—those born between 1997 and 2012—are entering the housing market earlier than expected. Whether it’s a first home, a remote work base, or an investment property, Gen Z buyers are making their mark across Chittenden County, the Upper Valley, and rural communities alike. Why Is Gen Z Buying in Vermont? Gen Z homebuyers are driven by a mix of lifestyle and financial considerations: Remote Work Flexibility: With many tech and creative jobs now fully remote, Gen Z professionals are choosing Vermont for its natural beauty, small-town charm, and high quality of life. Affordability (Compared to Urban Markets): While Vermont isn’t the cheapest place to buy a home, it offers far more value—and far less competition—than hot markets like Boston or New York. Climate and Sustainability Values: Gen Z is environmentally conscious. Vermont’s green policies, walkable towns, and emphasis on sustainable living resonate deeply. Desire for Stability: In an uncertain economic climate, some younger buyers are opting to purchase instead of rent, especially when interest rates drop or they receive family assistance with down payments. What Gen Z Should Know Before Buying in Vermont Buying your first home is a big step—and in Vermont, the process has some unique aspects: Vermont Is an Attorney State: Unlike some states where a title company handles the closing, Vermont requires an attorney for real estate transactions. At Peet Law Group, we’ll guide you through contract review, title searches, and the closing process. Septic and Well Systems Are Common: Especially in rural areas, many homes are not on public water and sewer. Understanding these systems—and your rights and responsibilities—is crucial. Energy Efficiency Incentives: Vermont offers rebates and incentives for weatherization, solar installations, and heat pumps—programs many Gen Z buyers prioritize. First-Time Buyer Programs: Vermont Housing Finance Agency (VHFA) and other organizations offer down payment assistance, reduced-rate mortgages, and tax credits for qualifying first-time homebuyers. How Peet Law Group Supports Gen Z Buyers We understand that buying a home can feel overwhelming—especially when you're balancing student loans, working your first job, or learning about property taxes for the first time. At Peet Law Group, we help Gen Z clients: Understand their contracts and negotiate contingencies Avoid common pitfalls like uninsurable title issues or zoning violations Coordinate with lenders and agents to keep everything on track through closing day Feel empowered and informed every step of the way If you’re part of Gen Z and thinking about buying a home in Vermont—whether it’s in Burlington, Barre, Brattleboro, or beyond — The Peet Law Group is here to help. Our team of experienced real estate attorneys is committed to making the process smooth, secure, and stress-free. Have questions about buying your first home in Vermont? Contact Peet Law Group today to schedule a consultation and take the first step toward homeownership with confidence.

Purchasing an investment property that already has tenants in place can be a great opportunity to generate rental income from day one. But it also comes with unique legal and practical considerations. At the Peet Law Group , we guide buyers through every aspect of the real estate transaction—including how to navigate tenant-occupied properties—so you can make an informed investment with confidence. Benefits of Buying a Tenant-Occupied Property One of the biggest advantages of buying a property with existing tenants is immediate rental income . There’s no downtime or need to market the unit—you step into an income-producing asset from day one. Additionally, an established rental history provides valuable insight into how the property performs financially and whether rent payments have been consistent. Review the Existing Leases Carefully When buying a tenant-occupied property, you are inheriting the existing leases —not starting fresh. That means you need to read the lease agreements thoroughly: • How much are the tenants paying? • When do the leases expire? • Are there any rent concessions or unusual terms? • Are there automatic renewal clauses or early termination rights? Understanding these details helps avoid surprises and ensures you’re comfortable with the legal obligations you’re assuming as a new landlord. Transferring Security Deposits Security deposits must be properly transferred from the seller to the buyer at closing. You should also get a written accounting of each tenant’s deposit, including any deductions taken during the seller’s ownership. Failing to handle this properly could expose you to liability under Vermont landlord-tenant law. Why You Need an Estoppel Letter An estoppel letter , or tenant estoppel certificate, is a signed statement from each tenant verifying key details about their lease. It typically confirms: • The amount of monthly rent • Lease start and end dates • Security deposit amount • Whether the landlord is in breach of any lease terms These letters protect the buyer by verifying that the information provided by the seller matches the tenant’s understanding. If there’s a dispute later, the estoppel letter can serve as valuable evidence. Municipal Rental Regulations and Compliance Some Vermont municipalities—including Burlington, South Burlington, Winooski, and Barre—require rental property registrations, inspections, or certificates of compliance . Before closing on a tenant-occupied property, it’s critical to check with the local municipality: • Is the property currently registered as a rental? • Are inspections up to date? • Are there any outstanding violations? Buying a noncompliant property can delay your ability to collect rent and potentially expose you to fines and expensive repairs. Final Thoughts Buying a property with tenants can be a smooth and profitable investment— if you know what to look for . At Peet Law Group, we have decades of experience guiding investors through Vermont’s residential real estate landscape. Whether it's ensuring proper transfer of security deposits, or confirming municipal compliance, we’ll make sure you’re protected at every step. Thinking of buying a rental property in Vermont? Contact the Peet Law Group today for experienced legal guidance tailored to your investment goals.

At the Peet Law Group, we help Vermonters navigate the legal side of buying, selling, and owning residential real estate. One of the most common questions from first-time homebuyers and long-time renters alike is: "Should I keep renting, or is it time to buy a home?" The answer depends on your goals, finances, and long-term plans—but there are compelling advantages to homeownership that are worth considering. Benefits of Owning a Home in Vermont 1. Building Equity Instead of Paying Rent When you rent, your monthly payments go to your landlord. When you own, your mortgage payments help you build equity—ownership value in your home. Over time, this equity can grow, especially if home values in your area increase. 2. Stable Monthly Payments With a fixed-rate mortgage, your monthly principal and interest payments stay consistent. Rent, on the other hand, can increase year after year, especially in competitive housing markets. 3. Tax Advantages Homeowners may be eligible for certain tax deductions, including mortgage interest and property taxes. While tax benefits depend on your situation, they can reduce your overall tax burden and make homeownership more affordable. 4. Freedom to Personalize Your Home Homeowners can renovate, decorate, and make changes without needing a landlord's permission. Whether it's painting a room or installing a new kitchen, owning gives you control over your living space. 5. A Long-Term Investment Real estate is generally a sound long-term investment. While markets fluctuate, homes in Vermont have historically appreciated in value, making ownership a potentially rewarding financial decision over time. When Does It Make Sense to Own Instead of Rent? Owning a home isn’t the right decision for everyone—but here are situations where buying may make more sense than renting: • You plan to stay in the area for several years. If you expect to live in one place for at least 3–5 years, owning typically makes more financial sense than renting. • You have stable income and good credit. Lenders look for consistent income and a solid credit history. These factors will help you qualify for a mortgage at a competitive rate. • You have enough for a down payment and closing costs. While some programs allow low down payments, it’s important to be financially prepared for upfront costs. • You're ready to invest in long-term financial growth. Homeownership often builds wealth over time and gives you a tangible asset that renting cannot. What If You're Not Sure? At Peet Law Group, we understand that deciding whether to buy or rent a home is a major decision. Our Vermont real estate attorneys have helped thousands of clients evaluate their options and protect their interests when buying a home. If you’re thinking about making the leap from renter to homeowner, we’re here to guide you through the process with clear legal advice and flat fee pricing. Ready to explore homeownership in Vermont? Contact Peet Law Group today to schedule a consultation and take the first step toward owning your home. Visit us at www.peetlaw.com or call our office to learn more.

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.

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. 1. Attorneys, Not Title Companies, Handle Closings 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. 2. Separate Attorneys for Buyer and Seller Are Required 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. 3. Real Estate Transfer Tax Responsibilities 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. 4. Town and City Clerks, Not County Offices, Record Deeds 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. 5. No Formal Escrow Process Like in Some States 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. 6. Onsite Septic and Water Systems Are Common 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. Thinking of Buying a Home in Vermont? 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. Whether you're relocating from another state or buying your first home in Vermont, we’re here to protect your interests and make your purchase seamless.

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.