What sellers must legally share with buyers…and what happens if they don’t
Selling a home or property in Vermont involves several legal steps, but one of the most important — and often overlooked — is the requirement to disclose information about the property’s condition. Unlike some states where detailed, standardized disclosure forms are required by law, Vermont takes a slightly different approach. Still, sellers are obligated to provide accurate and truthful information about the property, particularly regarding any known defects or issues that could impact its value or use.
Do I Have to Disclose Defects When Selling My Property in Vermont?
In Vermont, there is no statewide mandatory property disclosure form required by law. However, Vermont courts have clearly established that sellers must not make material misrepresentations or intentionally withhold information about known defects. In simple terms: you don’t have to volunteer every detail, but you can’t lie or conceal something significant.
Because of this, most sellers — especially those working with real estate agents — complete a Property Information Report or another disclosure form anyway. These documents typically cover the age and condition of systems like plumbing, roofing, electrical work, heating, water supply, septic tanks, and more. Sellers may also be asked to disclose whether the home contains asbestos, lead paint, structural damage, or boundary disputes.
If a seller is unsure about a particular item (like the age of a roof), they can state that they're uncertain — but they cannot knowingly provide false information.
What Counts as a “Material Defect”?
A material defect is any issue that could affect the value or livability of the property. Examples include:
- A leaky roof or foundation cracks
- Water damage or mold problems
- A malfunctioning water heater or furnace
- Infestations
- Boundary disputes or title issues
- Unsafe drinking water or septic system failure
- Hazardous materials, such as asbestos or a buried oil tank
If a seller is aware of such issues and fails to disclose them — or worse, attempts to hide them — they could be held liable for fraud or misrepresentation, even after the sale has closed.
What Happens If a Seller Fails to Disclose a Known Issue?
If a buyer later discovers an undisclosed problem with the property, the seller could face legal consequences, such as:
- Paying for repairs or replacement of damaged or defective systems
- Compensating the buyer for a loss in the property’s market value
- Cancellation of the sale, in extreme cases
- Punitive damages if the court finds evidence of willful fraud
The burden is often on the buyer to prove that the seller knew about the defect and intentionally failed to disclose it. That’s why many buyers in Vermont choose to work with qualified real estate attorneys and inspectors when purchasing property, especially when buying older or rural homes.
What About “As Is” Sales?
Even if a property is sold “as is,” a seller is still responsible for disclosing any known material defects. The “as is” clause simply means that the seller will not make repairs before the sale — not that they’re excused from telling the truth about the property’s condition.
Best Practices for Sellers
To minimize risk:
- Be honest about the property, even if it means disclosing costly issues.
- Use standardized property disclosure forms, even if not technically required.
- Keep records of inspections, repairs, and maintenance.
- Consult an attorney if you’re unsure about what to disclose.
Disclosing a defect upfront is almost always cheaper — and far less stressful — than dealing with a lawsuit later.
Need Legal Guidance?
Buying or selling property in Vermont can be complicated, especially when it comes to disclosure obligations. At Deppman Law PLC, we help clients manage real estate transactions with clarity and confidence. Contact our office today to discuss your real estate questions and ensure your transaction is handled the right way, with the protection and peace of mind you deserve.
