Selling a House in Vermont

Selling a house is one of the most significant legal transactions you'll ever participate in. It's important to know your legal rights and understand the process.

Working With a Real Estate Agent

In Vermont, real estate agents may represent sellers or buyers in real estate sales transactions. If a real estate agent is representing a seller as an agent, the seller is the agent's client, and the real estate agent owes the seller certain "fiduciary duties," which means that the agent owes the seller complete loyalty, trust and confidentiality.

In order to have a real estate agent represent you, it is necessary to enter into a seller listing agency agreement, also known as a listing agreement. It is also possible to work with a real estate agent as a customer; in this case, the real estate agent will not represent you as an agent, but will still have to meet the following duties in providing service to you:

• Disclosure of material facts relating to the property known by the agent
• To treat the parties to the transaction honestly, and to not knowingly give false information about a property
• To account for money and property received in connection with a sale
• To comply with all state and federal laws governing real estate brokerage activities

Under Vermont law, when you first have significant contact with a real estate agent, he must provide you with a mandatory consumer disclosure form, which provides information on the types of relationships that are available when working with a real estate agent.

As a seller, you must disclose to the buyer material facts about defects with your property, which the buyer could not discover with diligent attention, observation and judgment. A material fact about a defect refers to information that would affect the value of the property or the buyer's decision to make the purchase. If you don't disclose such defects, you could later face a lawsuit by the buyer for fraud or misrepresentation.

You should disclose the following potential house defects:

• Plumbing and sewage problems
• Water leakage of any type, including in basements
• Termites or other infestations
• Roof defects
• Heating or air conditioning system problems
• Property drainage problems
• Foundation instabilities or cracks
• Problems with title to the property
• Substantial additions or alterations made without a building permit
• Hazardous materials
• Any other problems

Purchase Agreements

When you've got a serious buyer, you'll receive a written offer to purchase your home, sometimes called a "purchase agreement," which states the finalized terms and conditions for the sale.

You won't have very long to decide whether or not to take the offer or propose a counteroffer so it's important to be informed ahead of time.

Common counter-proposal items include:

• A higher purchase price
• A higher deposit
• Giving buyer less time to remove contingencies
• Excluding certain items from the sale
• Providing you move in time to vacate the house after the sale is closed
• A clause making it a contingency that your attorney approve the contract
• A "liquidated damages clause" that details how much money the buyer will owe you if the buyer backs out of the deal for reasons other than the contingencies listed in the contract

Legal Title Issues

Your Vermont real estate lawyer or title company will investigate the legal title of the property you want to sell, and may find issues you'll need to understand.

In Vermont, for example, an implied easement may be present where a person grants lands to which there is no accessible right-of-way except over her or his land or retains land that is inaccessible except over the land which the person conveys. In such instances a right-of-way is presumed to have been granted or reserved. Such an implied grant or easement in lands or estates exists where there is no other reasonable and practicable way of accessing the property, and it is reasonably necessary for the beneficial use or enjoyment of the part granted or reserved.

Your property may also be subject to a "lien," which is a charge on the property to satisfy a debt or other obligation owed by the current owner of the property. A lien encumbers property as long as it exists and has been recorded in the public records.

In Vermont, liens on a piece of property may include:

• Mortgages
• Land sale contracts
• Involuntary liens (includes workmen's liens, liens for unpaid taxes and liens filed by creditors holding judgments against the owner)

Closing Costs

In Vermont, you can expect to pay for some or all of the following charges - called "closing costs"-at the time you sell your home:

• Broker's commission
• Survey
• Title insurance
• Recorded release of mortgage
• Transfer taxes
• Attorney's fee
• Home inspections

Specific Performance

In Vermont, a seller who agrees to sell a particular property must do so unless the buyer fails to meet all the terms of the purchase agreement. This is called "specific performance," which is a legal action to compel performance of a contract. For this contract remedy, a court can order the parties to complete the contract. The buyer must then deliver the purchase price and the seller must then deliver the deed. If you have second thoughts on a particular sale, you'll want to immediately contact an attorney.