Key Takeaways
- Vermont requires licensees to provide a Mandatory Consumer Disclosure form to all consumers
- The disclosure must be provided at the first reasonable opportunity and before discussing confidential information
- A Consumer Disclosure must be signed prior to showing or listing a property
- Vermont law requires disclosure of all material facts known to the agent
- Licensees must treat both buyers and sellers fairly and not distribute inaccurate information
Vermont Mandatory Consumer Disclosure
The Vermont Mandatory Consumer Disclosure is Vermont's primary law governing agency disclosure and consumer protection in real estate transactions.
Purpose of the Mandatory Consumer Disclosure
Vermont law requires all agents to perform basic duties when dealing with a buyer or seller. The Mandatory Consumer Disclosure form describes:
- The types of brokerage services available in Vermont
- The agent's relationship with the consumer
- Basic duties owed to all parties
Key Point: The Mandatory Consumer Disclosure form is required for virtually all residential real estate transactions in Vermont.
When to Provide the Disclosure
The Mandatory Consumer Disclosure must be provided to the consumer:
- At the first reasonable opportunity
- Before discussing confidential information
- Before entering into a brokerage service agreement
- Before showing a property
Timing Guidelines
| Situation | When to Provide |
|---|---|
| Listing presentation | At first substantive contact |
| Buyer inquiry | Before discussing needs, preferences, or finances |
| Showing property | Before showing any property |
| Open house | Before substantive conversation |
Basic Standards for ALL Agents
Vermont law requires that all real estate brokerage firms and their agents meet certain basic standards when dealing with a buyer or seller:
Universal Duties
| Duty | Description |
|---|---|
| Disclose material facts | All material facts about the property known to the agent |
| Fair treatment | Treat both buyer and seller fairly |
| Accurate information | Not knowingly distribute inaccurate information about the property |
| Account for funds | Account for all money and property received |
| Legal compliance | Comply with all state and federal laws related to real estate brokerage |
Important: These duties apply to ALL agents, regardless of whom they represent.
Disclosure Form Requirements
Signature Requirements
| Requirement | Status |
|---|---|
| Consumer signature | Required before showing or listing property |
| Agent signature | Required |
| Timing | Before confidential discussion begins |
Retention
Brokers must maintain copies of signed disclosure forms as part of transaction records.
Agency Disclosure Office Policy
In addition to the Mandatory Consumer Disclosure, brokerage firms must:
- Determine their agency practice (designated or non-designated)
- Communicate their policy to consumers
- Provide the appropriate disclosure form based on their agency type
Disclosure Form Versions
Vermont has two versions of the Mandatory Consumer Disclosure form:
| Form Type | For Use By |
|---|---|
| Designated Agency Disclosure | Firms practicing designated agency |
| Non-Designated Agency Disclosure | Firms not practicing designated agency |
Key Point: The firm's choice of agency practice determines which form to use.
Material Facts Disclosure
Vermont law places significant emphasis on disclosure of material facts:
What ARE Material Facts?
| Material Facts | Examples |
|---|---|
| Physical defects | Foundation issues, roof leaks, plumbing problems |
| Environmental hazards | Mold, flooding history, contamination |
| Legal issues | Zoning violations, easements, liens |
| Property condition | Systems not functioning, structural damage |
Agent's Duty
- Agents must disclose all material facts known to them
- This duty applies regardless of agency relationship
- Failure to disclose can result in disciplinary action
When must the Vermont Mandatory Consumer Disclosure form be provided to a consumer?
Which duty applies to ALL Vermont real estate agents regardless of whom they represent?