The Agency Disclosure Form:
This is a state required form that is not a contract.
It informs either the buyer or seller who the agent is working for in this transaction.
If you, as the buyer, have not signed a separate Buyer Broker Agreement, then the agent is always working towards the sellers' best interests.
As a buyer, it is your right to know your options.
Unless otherwise agreed upon, a buyer broker will always be paid out of the sellers' proceeds at closing.
What To Consider When Buying:
It is important to give specific criteria to your REALTOR in order to help them assist you in finding the perfect property.
Before you begin your search, keep in mind things that you do or don't want.
These items could include the number of beds and baths, views, acreage, a garage or fireplace, proximity to local attractions, heating systems, etc.
Taxes and Other Important Associated Costs-Buyers: In Vermont, the buyer pays Property Transfer Tax, which is now 1.45% of the sale price. For a principal residence, this tax is only 0.5% up to the first $100,000.
Most commonly you will have an inspector to pay, and possibly others if there is anything to be done on the property prior to closing.
Your closing costs, usually paid with cashier's check, will usually include attorney fees, mortgage fees, and home insurance fees.
Any utilities, taxes, or other bills paid through the closing date by the sellers will be prorated and shown as a credit to the sellers at closing.
Also, do not forget to have utilities switched into your name as of the closing date.
Taxes and Other Important Associated Costs-Sellers: When you go to resell the property, as a non-resident there is a 2.5% Withholding Tax, withheld by the buyers' attorney at closing to be considered payment towards Vermont state income tax.
You can get refunds and credits which your attorney will explain based on your profit or lack thereof.
If you've owned your property for 6 or less years, you are applicable for the Vermont Land Gains Tax, which is a graduated tax reducing over time up to 6 years on any profit on the land portion of the sale.
This tax has several exemptions and you should speak with your attorney about it.
As a non-resident you can avoid many taxes by selling via a 1031 Tax Exchange, wherein you roll the monies from the closing into another like kind investment property within 180 days.
You should speak to a 1031 Tax Exchange specialist for more information.
Your attorney will inform you of what you will look to net at closing.
Vermont law requires that properties have working photoelectric sensor type smoke and co detectors in the home or condo. There are various regulations depending upon the type and use of property so be sure to ask.