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Vermont Legislative Update
The property transfer tax changes, effective 8/1/24, have confused many of us! In addition to the property transfer tax changes, of interest in the real estate community are the new Act 250 Road Rule and a required Flood Disclosure. See below on those two new statutes:
New Definition/Trigger of Development
* * * Road Rule * * *
Sec. 19. 10 V.S.A. § 6001(3)(A)(xii) is added to read:
(xii) The construction of a road or roads and any associated driveways to provide access to or within a tract of land owned or controlled by a person. For the purposes of determining jurisdiction under this subdivision, any new development or subdivision on a parcel of land that will be provided access by the road and associated driveways is land involved in the construction of the road.
(I) Jurisdiction under this subdivision shall not apply unless the length of any single road is greater than 800 feet, or the length of all roads and any associated driveways in combination is greater than 2,000 feet.
(II) As used in this subdivision (xii), “roads” include any new road or improvement to a class 4 town highway by a person other than a municipality, including roads that will be transferred to or maintained by a municipality after their construction or improvement. Routine maintenance and minor repairs of a Class 4 highway shall not constitute an “improvement.” Routine maintenance shall include replacing a culvert or ditch, applying new stone, grading, or making repairs after adverse weather. Routine maintenance shall not include changing the size of the road, changing the location or layout of the road, or adding pavement.
(III) For the purpose of determining the length of any road and associated driveways, the length of all other roads and driveways within the tract of land constructed after July 1, 2026 shall be included.
(IV) This subdivision (xii) shall not apply to:
(aa) a State or municipal road, a utility corridor of an electric transmission or distribution company, or a road used primarily for farming or forestry purposes;
(bb) development within a Tier 1A area established in accordance with section 6034 of this title or a Tier 1B area established in accordance with section 6033 of this title; and
(cc) improvements underway when this section takes effect to a Class 4 highway that will be transferred to the municipality.
(V) The conversion of a road used for farming or forestry purposes that also meets the requirements of this subdivision (xii) shall constitute development.
(VI) The intent of this subdivision (xii) is to encourage the design of clustered subdivisions and development that does not fragment Tier 2 areas or Tier 3 areas.
New Seller Disclosure Requirement
* * * Flood Risk Disclosure * * *
Sec. 102. 27 V.S.A. § 380 is added to read:
§ 380. DISCLOSURE OF INFORMATION; CONVEYANCE OF REAL
ESTATE
(a) Prior to or as part of a contract for the conveyance of real property, the seller shall provide the buyer with the following information:
(1) whether the real property is located in a Federal Emergency Management Agency mapped special flood hazard area;
(2) whether the real property is located in a Federal Emergency Management Agency mapped moderate flood hazard area;
(3) whether the real property was subject to flooding or flood damage while the seller possessed the property, including flood damage from inundation or from flood-related erosion or landslide damage; and
(4) whether the seller maintains flood insurance on the real property.
(b) The failure of the seller to provide the buyer with the information required under subsection (a) of this section is grounds for the buyer to terminate the contract prior to transfer of title or occupancy, whichever occurs
earlier.
(c) A buyer of real estate who fails to receive the information required to be disclosed by a seller under subsection (a) of this section may bring an action to recover from the seller the amount of the buyer’s damages and reasonable
attorney’s fees. The buyer may also seek punitive damages when the seller knowingly failed to provide the required information.
(d) A seller shall not be liable for damages under this section for any error, inaccuracy, or omission of any information required to be disclosed to the buyer under subsection (a) of this section when the error, inaccuracy, or omission was based on information provided by a public body or by another person with a professional license or special knowledge who provided a written report that the seller reasonably believed to be correct and that was provided by the seller to the buyer.
(e) Noncompliance with the requirements of this section shall not affect the marketability of title of a real property.
Click here to continue reading about other changes made during the 2024 legislative session.
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