Vermont Condo Due Diligence Checklist

Where Vermont due diligence deserves the most attention

Legal Framework

Condominiums and HOAs (post-1999): Governed by the Vermont Common Interest Ownership Act, 27A V.S.A. §§ 1-101 et seq., the state's enactment of the Uniform Common Interest Ownership Act (1994). It applies to all common interest communities (condominiums, planned communities/HOAs, and cooperatives) created in Vermont on or after January 1, 1999 (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999).

Reserve Studies and Reserve Funding

So while Vermont does not require reserves, it requires associations to disclose what reserves they have (or do not have) at sale and budget time. A buyer who sees a blank or trivial reserve line is seeing a legally compliant but financially risky community.

Structural Inspections and Building Safety

Vermont has no Surfside-style milestone-inspection or reserve-study mandate for condominiums — no statute analogous to Florida SB-4D, NYC Local Law 11, or California SB-326. However, Vermont is unusual in that fire-and-building-safety inspection intersects directly with condo/multi-family sales.

Insurance Requirements and Insurance-Market Risk

Property insurance on the common elements (and, in a planned community, association-owned property) against risks of direct physical loss commonly insured against, in an amount not less than 80% of actual cash value at purchase and at each renewal.; Commercial general liability insurance (including medical payments) in an amount set by the executive board but not less than any amount specified in the declaration, covering bodily injury and property damage arising from the common elements.; Policy provisions must include: liability coverage extending to e…

Resale Disclosures and Buyer Cancellation Rights

Association turnaround: Within 10 days of a unit owner's request, the association must furnish the certificate (§ 4-109(b)). The seller is not liable to the buyer for erroneous information the association supplies.; Buyer protection on amounts: A buyer is not liable for any unpaid assessment or fee greater than the amount stated in the certificate (§ 4-109(c)).; Cancellation right (resale): The seller is not liable for the association's delay, but the purchase contract is voidable by the purchaser until the certificate has been provided and for FIVE days…

Assessments, Special Assessments, and Borrowing

`emergency_assessment_levied` – Board used the § 3-123 two-thirds emergency mechanism (often flood/storm-driven).; `special_assessment_pending` – Special assessment proposed/approved, not yet in the certificate.; `budget_ratified_by_default` – Budget ratified without a quorum via the negative-option process.; `large_budget_increase` – Year-over-year jump beyond a threshold.