The Vermont Home-Selling Process: Your Step-by-Step Checklist

Vermont residential transactions typically use the Vermont Association of Realtors standard purchase and sale contract. It covers the purchase price, earnest money amount, closing date, what personal property stays with the home, and any contingencies the buyer is requesting. Your agent will walk you through each section. Pay close attention to the financing contingency, inspection contingency, and any deadlines — these all affect your timeline.

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After the NAR settlement that took effect in August 2024, sellers are no longer required to offer compensation to a buyer's agent, and those offers can no longer be advertised in the MLS. If you choose to offer compensation — which some sellers do to attract more buyers — it must be negotiated directly in the purchase and sale contract or through a separate written agreement. Talk to your agent about what makes sense in your local market.

Cost: varies

You have three choices when you receive an offer: accept it as written, reject it outright, or submit a counteroffer with different terms. Counteroffers are common and can address price, closing date, included items, or contingency timelines. Once both parties sign and the contract is fully executed, you are officially under contract. Until then, either side can walk away without penalty.

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Once the contract is signed, the buyer's earnest money deposit must be held in a licensed broker's trust account — a separate account that cannot be mixed with operating funds. Vermont rules require the deposit to be made promptly, typically within three banking days of contract execution. This money is held until closing and is applied to the buyer's costs at that time.

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Vermont is an attorney-closing state. While no statute explicitly mandates an attorney for every residential sale, lenders require attorney-conducted closings for financed transactions, and Vermont title insurance companies require attorney title opinions. Your attorney will conduct the title examination, prepare closing documents, and manage the fund disbursement at closing. Contact your attorney as soon as the contract is signed so the title examination can begin without delay.

Cost: $800-1500 typical

Under 26 VSA Chapter 41, Vermont requires sellers and their agents to disclose any material fact — meaning any information that would likely affect a reasonable buyer's decision to purchase or the price they would pay. Examples include known structural defects, flooding history, failing septic, and documented environmental issues. This obligation does not end when the contract is signed; if you learn of a new material fact during the transaction, you must disclose it.

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Vermont has a large number of rural properties with private wells and septic systems rather than municipal water and sewer. The Property Information Report asks for everything you know about your septic system — its age, last pump-out date, any known problems — and about your well water. While Vermont does not require you to test or certify your septic before selling, disclosing what you know is required. Buyers may request water quality testing as part of their due diligence.

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Vermont does not have a standalone flood disclosure statute, but flood zone status is a material fact under 26 VSA Chapter 41. If your property is located in a FEMA Special Flood Hazard Area — such as Zone A, Zone AE, or other designated zones — you must disclose that to the buyer. Buyers in a flood zone may be required to carry flood insurance. FEMA Flood Insurance Rate Maps are publicly available and your agent or attorney can help you confirm your property's status.

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FIRPTA is a federal tax law that requires the buyer to withhold a percentage of the purchase price from the seller's proceeds when the seller is a foreign person — typically 15% of the gross sale price. If you are a U.S. citizen or a permanent resident (green card holder), FIRPTA does not apply to you and you should say so in writing. If you are a foreign national, your closing attorney needs to handle the FIRPTA withholding and IRS filings before or at closing.

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The buyer has the right to inspect the home under the standard Vermont purchase contract. Schedule a time with your agent and plan to be out of the home during the inspection — inspectors and buyers work better without the seller present. Make sure all areas are accessible: attic, basement, crawl spaces, electrical panel, furnace, and any outbuildings included in the sale. Leave all manuals and recent maintenance records where the inspector can see them.

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After the inspection, the buyer may ask for repairs, credits, or price reductions based on what the inspector found. You are not legally required to fix everything. You can agree to specific repairs, offer a credit at closing, lower the price, or decline the requests and let the buyer decide whether to proceed. Your agent will help you evaluate what is reasonable given the market and the condition of your home.

Cost: varies

Inspection negotiations are a normal part of selling a home. Common resolutions include completing specific repairs before closing, offering a dollar credit that the buyer uses after closing, or reducing the sale price. Get any agreed repairs in writing as an amendment to the purchase contract. If the buyer and seller cannot agree and the inspection contingency is still active, the buyer may have the right to cancel the contract.

Cost: varies

If you agreed to make repairs as part of the inspection resolution, get licensed contractors to do the work and save the receipts and any permits. The buyer will typically do a final walk-through before closing to confirm the repairs were completed. Skipping repairs you agreed to in writing can delay or jeopardize the closing, and the buyer may have legal recourse if they discover the work was not done.

Cost: varies

The buyer's lender will hire a licensed appraiser to determine the market value of your home. The appraiser visits in person, measures the home, notes condition issues, and compares your property to recent sales. You can help by making the home clean and accessible, completing any small obvious repairs, and having a list of recent improvements ready for the appraiser. A well-maintained home and accurate improvement documentation can support a strong appraised value.

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If the appraiser values the home below the agreed sale price, the buyer's lender will typically only lend based on the appraised value. This creates a gap the buyer must cover with cash or negotiate out of. You have options: lower the price to the appraised value, split the difference with the buyer, challenge the appraisal through your agent with supporting comparable sales data, or hold firm and let the buyer decide whether to proceed or cancel under the financing contingency.

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Your agent should be in regular contact with the buyer's agent to track whether the loan is moving forward. Lenders typically issue a conditional approval, then a clear-to-close once all conditions are satisfied. If the buyer cannot secure financing and the contract has a financing contingency, they may be able to cancel the contract and get their earnest money back. Knowing the loan status early gives you time to react if something goes wrong.

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Your Vermont closing attorney will prepare a settlement statement showing all the credits and charges on your side of the transaction: the sale price, your mortgage payoff, agent commissions, attorney fees, prorated property taxes, and any other adjustments. Review it carefully with your agent before closing day. Vermont closings are attorney-run, so if you see anything you do not recognize, ask your attorney to explain it before you arrive at the closing table.

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Vermont's property transfer tax under 32 VSA Chapter 231 is technically paid by the buyer, but sellers should understand how it is structured because it affects negotiations. For a buyer purchasing as a principal residence, the tax is 0.5% on the first $100,000 and 1.25% above that. For non-primary residences, investment property, and second homes, the rate is 1.45% on the full price. Vermont also charges a Clean Water Surcharge on top of the base transfer tax. Your attorney will calculate the exact amount.

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Unless you negotiated a post-closing occupancy arrangement, you must be fully moved out before or on closing day. The buyer will do a final walk-through — typically the day before or the morning of closing — to confirm the home is in the same condition it was when the contract was signed, all agreed repairs were made, and no new damage has occurred. Leave the home broom-clean, remove all your belongings, and make sure any items listed in the contract as included with the sale are still there.

Cost: varies

Contact your utility providers — electric, gas, water, internet, trash — to schedule service transfers or cancellations for the day of closing. Do not cancel your homeowner's insurance until after closing is confirmed and the deed has been recorded. If something damages the home the day before closing and you have no coverage, the loss is yours. Once the deed is recorded and the sale is final, you can notify your insurance company.

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Prepare a package for the buyer that includes all keys to the house, mailbox, garage, outbuildings, and any gated areas; access codes for garage doors, alarm systems, and smart locks; manuals for appliances and systems staying with the home; any warranties still in effect; and permits or certificates of occupancy for recent work. Hand these over at closing or leave them in an agreed location at the home.

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Vermont closings are handled by a licensed Vermont attorney. The attorney manages the signing of all documents, confirms that funds are available, and coordinates the deed transfer. As the seller, you will sign the deed conveying the property to the buyer, the settlement statement, and possibly a few other documents your attorney prepares. The closing typically takes 60 to 90 minutes. Bring your government-issued ID.

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The deed is the legal document that transfers ownership of your home to the buyer. Your closing attorney will prepare the deed. You must sign it in front of a notary — your attorney typically serves as the notary. After signing, the attorney records the deed with the town clerk's office in the Vermont town where the property is located. Once recorded, the transfer is officially complete and cannot be undone without both parties' agreement.

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After the closing documents are signed and the buyer's funds are confirmed, your closing attorney will disburse the proceeds. From the sale price, your attorney deducts your mortgage payoff, agent commissions, attorney fees, any seller-paid closing costs, prorated taxes, and other agreed amounts. The remaining balance — your net proceeds — is typically wired to your bank account on closing day or the next business day. Confirm your wire instructions with your attorney in advance.

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In Vermont, deeds are recorded at the town clerk's office in the town where the property sits — not at a county level. Your closing attorney handles the recording, but it is worth confirming that it was done within a few days after closing. Once recorded, your name is officially off the public record as owner. Your attorney will provide you with a copy of the recorded deed for your records.

Cost: Included in attorney fees

The sale of your home is a taxable event you must report on your federal income tax return and potentially on your Vermont state return. Federal law allows most sellers to exclude up to $250,000 of capital gain ($500,000 for married couples filing jointly) if they have owned and lived in the home for at least two of the last five years. Your closing attorney and accountant can help you determine whether you owe any capital gains tax and whether Vermont income tax applies to your gain.

Cost: varies