3.2 Vermont Property Disclosures
Key Takeaways
- Vermont has NO statewide mandatory residential seller-disclosure statute or form.
- Vermont follows caveat emptor (buyer beware), but sellers still may not misrepresent or actively conceal known material defects.
- The Seller's Property Information Report (SPIR) is a voluntary Vermont REALTORS® form, not a legal requirement.
- Federal law requires lead-based-paint disclosure for housing built before 1978, including the EPA pamphlet and a 10-day inspection window.
- Vermont's Lead Law adds state duties for pre-1978 target housing, including disclosure of compliance with court orders.
Vermont Is a Caveat Emptor State — With Limits
Vermont is one of the minority of states with no statewide mandatory residential seller-disclosure statute. There is no "Vermont Residential Property Disclosure Act," despite what some out-of-state websites claim — do not let SEO blog confusion creep into your exam answers. The governing principle is caveat emptor, Latin for "let the buyer beware": the buyer carries the burden of investigating the property, typically through inspections.
But caveat emptor is not a license to lie. Vermont courts have long held that a seller cannot:
| Prohibited act | Legal exposure |
|---|---|
| Make an active misrepresentation | Liability for fraud / misrepresentation |
| Conceal or cover up a known material defect | Liability for fraudulent concealment |
| Answer a direct question dishonestly | Fraud; rescission or damages |
So the rule is asymmetric: a seller generally has no statutory duty to volunteer a list of defects, but the moment the seller speaks or hides something, ordinary fraud law applies.
"As-Is" Sales
Selling "as is" means the seller will not make repairs — it does not wipe out fraud liability. A seller who paints over a known foundation crack and sells "as is" can still be sued for concealment.
| Myth | Reality |
|---|---|
| "As-is means I disclose nothing." | As-is bars repair demands, not honesty duties. |
| "No form means no liability." | Fraud and concealment liability still apply. |
| "Caveat emptor protects all sellers." | It protects passive sellers, never deceptive ones. |
Key point: The absence of a mandatory form shifts diligence to the buyer — it does NOT immunize a seller who actively deceives.
Agent Duties and the Voluntary SPIR
What Agents Must Disclose
Even where the seller has no statutory duty, a licensee owes professional and ethical duties. A Vermont agent must disclose known material facts about the property — facts that a reasonable buyer would want to know, that affect value or desirability, and that are not readily observable. An agent may not parrot a seller's lie.
| Category | Examples a licensee should disclose if known |
|---|---|
| Physical defects | Failing foundation, chronic roof leaks, faulty wiring |
| Environmental | Documented flooding history, radon results, mold, contamination |
| Legal | Recorded easements, encroachments, liens, zoning violations |
| Systems | Inoperable septic, dry well, dead furnace |
A known material physical defect that affects value must be disclosed; an agent who learns the septic field failed cannot stay silent because "the seller didn't ask me to mention it."
The SPIR (Seller's Property Information Report)
Because there is no statutory form, most Vermont sales use the Seller's Property Information Report (SPIR) — a voluntary Vermont REALTORS® questionnaire. Tested facts:
| Feature | Detail |
|---|---|
| Required by statute? | No — voluntary best practice |
| Who completes it? | The seller (not the agent), from personal knowledge |
| Format | Dozens of questions answered Yes / No / Don't Know |
| Topics | Roof, foundation, water/septic, heating, electrical, environmental, boundary/legal |
| Why use it? | Documents what was disclosed; reduces later fraud claims |
Trap: The SPIR is the seller's statement, not a warranty by the broker, and "Don't Know" is a legitimate answer — but a seller cannot answer "No" to something they actually know is "Yes."
Mandatory Federal and Vermont Lead-Paint Rules
The one disclosure that is mandatory in Vermont applies to lead-based paint — driven by federal law and reinforced by Vermont's own Lead Law. This applies to target housing: most residential housing built before 1978 (the year residential lead paint was banned).
Federal Lead Disclosure (Title X / Section 1018)
| Requirement | Detail |
|---|---|
| Disclose | Any known lead-based paint and hazards, plus available records/reports |
| Pamphlet | Give the EPA booklet "Protect Your Family From Lead in Your Home" |
| Lead Warning Statement | Include the required statement in the contract |
| 10-day inspection | Buyer gets a 10-day period to test for lead (waivable in writing) |
| Records | Retain signed disclosure for at least 3 years |
Exemptions include housing built in 1978 or later, zero-bedroom units (studios), and certain housing for the elderly or disabled with no children.
Vermont Lead Law
| Requirement | Detail |
|---|---|
| Applies to | Pre-1978 target housing (sales and many rentals) |
| Disclose | Known lead paint/hazards and whether the owner has complied with relevant court orders |
| Timing | Disclosure both before the P&S is signed and at sale |
| Rentals | Owners must perform Essential Maintenance Practices and file an annual compliance statement |
Burden of Proof in a Disclosure Dispute
| Element | Detail |
|---|---|
| Buyer must prove | The seller knew of the defect AND failed to disclose / concealed it |
| Seller's defense | Genuinely did not know of the defect |
| Best practice | Keep inspection, repair, and maintenance records to rebut later claims |
Warning: Lead disclosure is mandatory regardless of Vermont's caveat emptor stance. "Vermont has no disclosure form" never excuses skipping the federal lead packet on a pre-1978 home.
Which statement best describes Vermont's residential seller-disclosure framework?
A seller sells a 1965 home 'as is' after quietly painting over a known foundation crack. The buyer later sues. What is the seller's likely exposure?
For a Vermont home built before 1978, which disclosure is legally mandatory?
What is the SPIR in a Vermont transaction?
In a Vermont nondisclosure dispute, what must the buyer generally prove to win?