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H 827

An act relating to flooding disclosures when conveying real estate

2025-2026 Regular Session Introduced by Tony Micklus

The bill requires sellers to disclose flood risk and related history and insurance details to buyers in real estate transactions.

Read first time and referred to the Committee on General and Housing
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Bill Summary · H 827

Bill Summary: H 827 (Vermont) – An Act Relating to Flooding Disclosures When Conveying Real Estate

Purpose and Intent

  • The bill seeks to improve transparency around flood-related risks for real estate transactions in Vermont by requiring specific disclosures to prospective buyers and current property owners.
  • The overarching goal is to ensure buyers are aware of flood risks, potential flood insurance implications, and related responsibilities before completing real estate transactions.

Key Provisions and Changes

  • Disclosure Requirements:
    • Mandates that sellers or their agents provide explicit information about whether a property is located in a flood-prone area or subject to flooding, including the existence of any flood hazard designations.
    • Requires disclosure of past flood events affecting the property, if known, and any known history of drainage or sewage backup issues tied to flooding.
    • May require additional details about flood insurance requirements or costs, including whether the property is currently insured for flood risk and any changes anticipated in premiums or coverage.
  • Timing and Method of Disclosure:
    • Specifies when disclosures must be provided during the real estate transaction timeline (e.g., at the time of listing, in the disclosure form, or within a seller's disclosure statement).
    • Outlines acceptable methods for delivering disclosures (written form, electronic submission, or other recordable formats) to ensure verifiability.
  • Real Estate Professional Roles:
    • Clarifies the responsibilities of real estate agents, brokers, and sellers in ensuring disclosures are complete and accurate.
    • May impose duties to update disclosures if new flood-related information becomes available before closing.
  • Enforcement and Remedies:
    • Establishes potential penalties or remedies for failure to provide required disclosures, which could include civil action, rescission rights, or other claims typical in real estate disclosure statutes.
    • May specify limitations or defenses for sellers or agents, such as reliance on third-party information or certain exclusions.
  • Coordination with Other Laws:
    • Aligns with existing Vermont laws on property disclosures and floodplain management.
    • May reference or incorporate definitions (e.g., “flood zone,” “flood hazard,” “flood insurance”) consistent with state or federal programs.

Who Would Be Affected

  • Property Sellers: Responsible for providing mandated flood-related disclosures.
  • Real Estate Agents and Brokers: Responsible for ensuring disclosures are complete, accurate, and timely, and for communicating them to buyers.
  • Buyers: Beneficiaries of enhanced flood risk information prior to purchase, enabling informed decision-making.
  • Property with Flood History or Designations: Subject to new or expanded disclosure requirements.

Procedural and Timeline Aspects

  • Current Status: Read first time and referred to the Committee on General and Housing (as of 2026-01-29).
  • Next Steps in Process: The bill will be reviewed by the General and Housing Committee, which may hold hearings, propose amendments, and eventually move the bill to the floor for full chamber consideration.
  • Effective Date: Any anticipated implementation date (e.g., effective upon enactment or a specified future date) would be determined in the bill’s final text and any enactment clause.

Practical Implications

  • For Transactions: Could increase the amount of information buyers receive about flood risk, potentially affecting property values, insurance costs, and closing timelines.
  • For Public Policy: Signals Vermont’s emphasis on flood resilience and informed consumer protection in real estate markets.
  • For Compliance: Real estate professionals may need to update forms, training, and processes to meet the new disclosure obligations.

Note: This summary is based on the bill’s title and available action history. The exact language, definitions, thresholds (e.g., what constitutes “flood-prone” or required disclosure content), and enforcement details will be set forth in the full text of the bill as it moves through committee and legislative consideration.

Compiled from official sources — confirm details with the bill’s official record.

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