Vermont Real Estate Salesperson Exam — All Questions

The Vermont Property Transfer Tax on property to be used as the transferee's principal residence is imposed at:

• a.0.5 percent of the entire value transferred
• b.0.5 percent of the first $100,000 and 1.25 percent above that
• c.1.25 percent of the entire value transferred
• d.0.5 percent of the first $200,000 and 1.25 percent above that✓

The general rate is 1.25 percent of value, but for property to be used as the transferee's principal residence the tax is 0.5 percent of the first $200,000 in value and 1.25 percent of the value above $200,000. A larger $250,000 band applies where the purchaser obtains a qualifying assisted mortgage. Cite: 32 V.S.A. 9602(1).

Vermont imposes a Property Transfer Tax rate of 3.4 percent on the transfer of:

• a.Any commercial or industrial building located anywhere in the State
• b.Year-round housing that will not be the buyer's principal residence✓
• c.Undeveloped land of more than ten acres in size
• d.Any property bought by an out-of-state buyer or entity

The 3.4 percent rate applies to transfers of residential property that is fit for habitation on a year-round basis, will not be used as the transferee's principal residence, and for which the transferee will not be required to provide a landlord certificate. Cite: 32 V.S.A. 9602(4).

The Vermont Clean Water Surcharge on property subject to the Property Transfer Tax is:

• a.0.5 percent, collected only on commercial property sales
• b.0.22 percent, with the first $200,000 of a residence exempt✓
• c.0.22 percent of the entire value, with no exemption of any kind
• d.1.25 percent, collected only on second homes and camps

A surcharge of 0.22 percent applies to the value of property subject to the property transfer tax, except that there is no surcharge on the first $200,000 in value of property to be used as the transferee's principal residence, or on the first $250,000 where a qualifying assisted mortgage is used. Cite: 32 V.S.A. 9602a.

Under Act 250, no person may sell or offer for sale any interest in a Vermont subdivision:

• a.Without a written appraisal of the parcel
• b.Until the plat has been recorded in the land records
• c.Without a land use permit✓
• d.Until the town has issued a certificate of occupancy

Act 250 provides that no person shall sell or offer for sale any interest in any subdivision located in this State, or commence construction on a subdivision or development, or commence development, without a permit. Cite: 10 V.S.A. 6081(a).

A Vermont Act 250 land use permit, its amendments and any revocation are:

• a.Kept confidential until the development is complete
• b.Filed only with the District Environmental Commission
• c.Recorded in the local land records under the permittee✓
• d.Published in a newspaper of general circulation locally

So that adequate notice of permit terms and conditions is given, land use permits, permit amendments, and revocations must be recorded in the local land records and indexed as though the permittee were the grantor of a deed. Cite: 10 V.S.A. 6090(a).