Vermont has been hit hard by flooding, especially the last two years. Even if your own property has not suffered directly, flooding has been so widespread that we are all affected. From my office window, I can see a section of Route 100 that was washed out by the Mill Brook on July10.
In real estate sales, there is an underlying principle that all known or knowable material defects and facts shall be disclosed by the seller. A material defect is a specific issue with a property that could affect its value, usability, or safety. In other words, facts which the average person would take into consideration when making a purchase contract offer. Yes, this is the golden rule; treat others as you wish to be treated.
In their wisdom, the Vermont Legislature passed H.639 into law; 27 V.S.A 380, resulting in the Vermont Mandatory Flood Disclosure. The law went into effect on July 1, 2024, and this form is required disclosure for all real estate sales. This helps to formalize how sellers disclose the flood hazard and flood history of their property.
Thankfully, the form is one page and relatively straight forward for sellers to complete.
It requires posting reference to a Federal Emergency Management Agency (FEMA) map for the property and determining if the property is in a mapped Special Flood Hazard Area or a Moderate Flood Hazard Area. The form includes a link to a FEMA website to find the map and glossary of terms.
The form also requires sellers to disclose flood history, including any instances of flooding, flood damage, flood-related erosion or landside damage and a description of the damage / flooding. Finally, the form asks: Does the seller maintain flood insurance on the real property? While the disclosure of material facts like flooding hazards is not new, I believe this new form is a step forward for transparency on the subject.
Robbins is a managing partner at Mad River Valley Real Estate in Waitsfield.
