Vermont guide
Vermont reserve studies
Vermont is a voluntary-funding state: the Common Interest Ownership Act (27A V.S.A.) requires neither a reserve study nor any particular level of reserve funding. Section 3-102 authorizes an association to budget for reserves, but nothing compels it.
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What the statute does require is disclosure — the resale certificate (§4-109(a)(4)) and the budget summary (§3-123) must state what reserves exist, and a new-construction public offering statement (§4-103) must state the reserve included or disclose that none is. The result is that a blank or trivial reserve line is perfectly legal in Vermont, which makes reading that line against the building's age and exposure the central diligence task.
No study, no funding mandate — only disclosure
Vermont imposes no reserve-study frequency, no qualified-preparer standard, and no required component list. Structural components — roofs, decks, siding, parking — are not singled out by statute. The only obligations are disclosure: §4-109(a)(4) (resale certificate), §3-123 (budget summary, including the basis on which reserves are calculated and funded), and §4-103 (new-construction public offering statement). A buyer who sees a blank reserve line is seeing a legally compliant but financially risky community.
Reading a thin reserve in a high-exposure state
Because funding is voluntary, thin reserves are common — especially in 1970s through 1990s resort buildings and central-Vermont stock. Pair the disclosed reserve against the building's actual exposure: snow-load and freeze-thaw wear on roofs, decks, and concrete parking, and flood-repair costs after 2023 and 2024. A high-exposure building with a negligible reserve is the single most important reserve red flag in Vermont, because the funding mechanism by default becomes special assessments.
Earmarked reserves can mask the gap
Section 4-109(a)(4) requires disclosure of any reserve portions earmarked for specific projects. Earmarking can hide the absence of a general reserve: a reserve line that looks adequate may be fully committed to one project, leaving nothing for the next roof or deck. Read whether the disclosed reserve is general or designated, and ask what remains uncommitted.
What to request beyond the statutory minimum
Vermont's minimum is disclosure of a number, not a study. Request any reserve study that exists, the reserve-funding policy, multi-year financials and budget-to-actual, and the delinquency or AR aging — especially in resort and short-term-rental-heavy buildings where delinquency clusters. For older buildings, ask for roof, deck, and envelope condition reports, which the statute does not require but which tell you whether the thin reserve reflects a real plan or deferred maintenance.
Vermont legal references
- 27A V.S.A. §3-102 — Powers of the association (authority to budget for reserves)
- 27A V.S.A. §4-109 — Resale certificate (reserve disclosure §4-109(a)(4))
- 27A V.S.A. §4-103 — Public offering statement (new-construction reserve disclosure)
Informational only. Not legal advice. Always confirm against current statute and counsel.
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- Confirm whether any reserve study exists — Vermont does not require one
- Read the disclosed reserve line in the certificate (§4-109(a)(4)) and budget summary (§3-123)
- Determine whether the reserve is general or earmarked for specific projects
- Weigh the reserve against snow-load, freeze-thaw, and flood exposure
- Request multi-year financials and budget-to-actual
- Request the delinquency or AR aging, especially in resort/STR buildings
- For new construction, read the §4-103 reserve disclosure (or disclosure that none is included)
- Request roof, deck, and envelope condition reports for older buildings
- Check minutes for any reserve-funding or special-assessment discussion
- Treat a high-exposure building with a thin reserve as a special-assessment signal
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