5.2 Vermont Fair Housing, Advertising & Landlord-Tenant
Key Takeaways
- Vermont's Fair Housing and Public Accommodations Act adds protected classes beyond the federal seven: sexual orientation, gender identity, age, marital status, receipt of public assistance, and (in housing) the presence of children — broader than federal law.
- Employment status is NOT a protected class in Vermont fair housing; that is a common distractor.
- Vermont real estate sign law limits signs to one per property, generally 6 square feet or less near the main entrance, and prohibits 'sale pending'/'sale under contract' rider language and signs in the highway right-of-way or on trees.
- All advertising must identify the brokerage; a salesperson cannot advertise under only their own name (no 'blind ads').
- When tenant-occupied property sells, existing leases survive the sale, the seller transfers security deposits to the buyer at closing, and the PURCHASER must give tenants written notice.
Vermont Fair Housing: Broader Than Federal Law
The federal Fair Housing Act protects seven classes: race, color, religion, national origin, sex, familial status, and disability. Vermont's Fair Housing and Public Accommodations Act (9 V.S.A. Chapter 139) keeps all seven and adds more, so Vermont licensees must apply the broader state list.
| Protected Class | Federal | Vermont (adds) |
|---|---|---|
| Race, color, religion, national origin, sex | Yes | Yes |
| Disability | Yes | Yes |
| Familial status / presence of children | Yes | Yes |
| Sexual orientation | No | Yes |
| Gender identity | No | Yes |
| Age | No | Yes |
| Marital status | No | Yes |
| Receipt of public assistance | No | Yes |
Trap: Employment status is NOT a Vermont protected class. A test item that lists "employment status" among Vermont's protected classes is wrong. Conversely, refusing a tenant because they pay rent with a Section 8 voucher or public assistance IS illegal in Vermont (receipt of public assistance), even though that is not federally protected.
Prohibited Conduct
The usual prohibitions apply to every protected class: refusing to sell or rent, steering, blockbusting, discriminatory advertising, different terms, and false "not available" statements. A licensee must follow the client's lawful instructions but may never carry out a discriminatory instruction — "the seller told me not to show it to families with kids" is no defense.
Worked example: A landlord tells the listing agent, "Don't rent to anyone on public assistance." In Vermont that instruction is illegal because receipt of public assistance is protected. The agent must refuse to comply and should decline or withdraw rather than discriminate.
Advertising and Sign Law
Vermont regulates how licensees advertise to protect consumers from deception and to limit roadside clutter. The rules are concrete and testable.
Advertising Rules
| Rule | Requirement |
|---|---|
| Identify the brokerage | All advertising must include the firm/brokerage name; a salesperson may not advertise in only their own name |
| No blind ads | An ad that hides the fact a licensee/firm is involved ("For sale by owner — call 802-555-...") when a licensee is behind it is prohibited |
| Truthful | No false or misleading claims about price, features, or availability |
| Owner consent | Advertise a property only with the owner's authorization |
Sign Law
| Sign Rule | Standard |
|---|---|
| Number | Generally one sign per property |
| Size | Typically 6 square feet or less |
| Placement | Near the main entrance; not in the highway right-of-way and not nailed to trees |
| Prohibited riders | "Sale Pending" and "Sale Under Contract" add-on signs are prohibited |
| Removal | Remove promptly after closing or expiration of the listing |
Vermont-specific: The prohibition on "Sale Pending" / "Sale Under Contract" riders and the one-sign, near-the-entrance, no-right-of-way rules are distinctly Vermont and show up as "which sign practice is permitted?" items. Signs in the state highway right-of-way are an enforcement issue with the Agency of Transportation as well as a license-law concern.
Landlord-Tenant Issues When Property Sells
Vermont licensees frequently list tenant-occupied property, and the state exam tests what happens to the lease, the deposit, and the notice when ownership changes.
| Issue | Vermont Rule |
|---|---|
| Existing lease | The lease survives the sale. The buyer takes title subject to the tenant's existing lease term; a new owner cannot simply evict a tenant who has a valid lease |
| Security deposit | The seller transfers the security deposits to the buyer at closing; the buyer then holds and must account for them |
| Notice to tenant | The PURCHASER (new owner), not the seller, must give the tenants written notice of the change in ownership and where to pay rent |
| Month-to-month | Even at-will tenants get statutory notice before termination; the new owner steps into the landlord's shoes |
Worked example: A duplex with two tenants on annual leases is sold in March. The leases run through December, so the buyer must honor them; at closing the seller hands over both security deposits, and after closing the buyer sends each tenant written notice identifying the new owner and rent-payment instructions. An exam answer saying "the seller notifies the tenants" or "the leases terminate at closing" is wrong.
Security Deposit Basics
| Topic | Vermont Standard |
|---|---|
| Holding | Landlord (now the buyer) holds the deposit; must return it after move-out per statute |
| Return deadline | Within the statutory window after the tenant vacates (with an itemized statement of any deductions) |
| Permitted deductions | Unpaid rent, damage beyond normal wear and tear |
Key Point: Three landlord-tenant facts anchor most questions: the lease survives the sale, the deposit transfers at closing, and the buyer (not seller) notifies tenants. Layer Vermont's broader fair-housing classes on top, and remember employment status is not protected while receipt of public assistance is.
Which of the following is a protected class under Vermont fair housing law but NOT under the federal Fair Housing Act?
A landlord instructs a Vermont listing agent not to rent to applicants who use Section 8 vouchers. What must the agent do?
A tenant-occupied duplex with leases running through December is sold in March. What happens at and after closing?
Which real estate sign practice is permitted under Vermont law?
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