When purchasing a home, one of the most critical steps in the process is conducting a title search. A title search ensures that the property’s title is clear of encumbrances or legal claims that could affect ownership. One of the most significant issues that can arise during a title search is the discovery of a lien. Liens can complicate or even prevent a real estate transaction, making it essential to identify and resolve them before closing. As experienced Vermont real estate attorneys, we ensure that liens are properly addressed so that buyers receive a clear and marketable title to their new home. What is a Lien? A lien is a legal claim against a property that serves as security for a debt or obligation. If the debt is not repaid, the lienholder may have the right to foreclose on the property or take legal action to recover the amount owed. Liens are attached to the property itself, meaning they stay with the property even if ownership changes. If a buyer unknowingly purchases a property with an outstanding lien, they could become responsible for resolving it—often at significant financial cost. That’s why a thorough title search is critical before finalizing a home purchase. Types of Liens and How They Arise Liens can arise from various sources, including unpaid debts, court judgments, and government claims. Below are some of the most common types of liens that may be discovered during a title search: 1. Writs of Attachment A writ of attachment is a court-ordered lien placed on a property during a lawsuit. It is often issued when a creditor sues a property owner and seeks to secure their claim by preventing the owner from selling or transferring the property before the court case is resolved. How It Arises: • A lawsuit is filed against a property owner for an unpaid debt. • The court issues a writ of attachment, which places a lien on the property to secure the creditor’s claim. Resolution: • If the owner wins the lawsuit, the lien is removed. • If the creditor wins, the court may order the sale of the property to satisfy the debt. 2. Judgment Liens A judgment lien is created when a court issues a judgment against a property owner for an unpaid debt. If the owner does not voluntarily pay the judgment, the creditor can place a lien on the debtor’s real estate. How It Arises: • A creditor sues the property owner for an unpaid financial obligation. • The court grants a monetary judgment, and the creditor records a lien against the debtor’s property. Resolution: • The lien must be paid off before the property can be sold or refinanced. • In some cases, the creditor may pursue foreclosure if the debt remains unpaid. 3. Tax Liens A. Property Tax Liens Local governments can place a property tax lien on real estate if the owner fails to pay property taxes. Property tax liens take priority over most other liens, meaning they must be satisfied before any other claims. Resolution: • The property owner must pay the overdue taxes, plus interest and penalties. • If unpaid, the government may sell the property through a tax sale. B. State and Federal Income Tax Liens Both the IRS and state tax authorities can file a tax lien against a property if the owner fails to pay income taxes. How It Arises: • A taxpayer owes state or federal income taxes and does not pay after receiving a demand for payment. • The government records a tax lien, which attaches to the taxpayer’s real estate and other assets. Resolution: • The taxpayer must satisfy the tax debt, negotiate a payment plan, or seek relief through tax lien removal programs. 4. Mortgage Liens A mortgage lien is the most common type of lien in a real estate transaction. When a buyer takes out a mortgage loan, the lender places a lien on the property until the loan is paid in full. Resolution: • The lien is automatically removed when the mortgage is paid off or refinanced. 5. Mechanic’s Liens A mechanic’s lien (or contractor’s lien) is filed by a contractor, subcontractor, or supplier who has provided labor or materials to improve a property but has not been paid. How It Arises: • A homeowner hires a contractor for renovations or repairs. • The homeowner fails to pay, and the contractor files a lien to secure the debt. Resolution: • The owner must settle the unpaid bill or challenge the lien in court. 6. Homeowners Association (HOA) Liens If a property is part of a homeowners association (HOA) or condominium association, the owner is responsible for paying association fees, dues, and special assessments. If these payments are not made, the HOA can place a lien on the property and, in some cases, initiate foreclosure proceedings. How It Arises: • The homeowner fails to pay HOA dues, fees, or special assessments. • The HOA records a lien against the property, securing its right to collect the unpaid amounts. Resolution: • The homeowner must pay the overdue amounts (including late fees, interest, and legal costs) to remove the lien. • Some HOAs may allow a payment plan or negotiate a settlement. • In extreme cases, if the debt is not resolved, the HOA may foreclose on the property, even if the mortgage is current. How Are Liens Resolved? Liens must be cleared before a property can be transferred with a clean title. The most common methods of resolution include: ✅ Paying Off the Debt – The easiest way to clear a lien is for the property owner to pay off the underlying debt. ✅ Negotiating a Settlement – In some cases, lienholders may accept a reduced amount to release the lien. ✅ Filing a Lien Release or Satisfaction – Once a lien is paid, the lienholder must file a release or satisfaction of lien with the appropriate recording office. ✅ Legal Action or Court Order – Some liens, particularly those resulting from disputes, may require a lawsuit or court order for resolution. ✅ Title Insurance – In cases where liens are missed during a title search, an owner’s title insurance policy can protect the buyer from financial loss.

Learn about property disputes in South Burlington, VT, and how The Peet Law Group, expert real estate attorneys, can resolve them. Call now at 802-860-4767!

Buying a home is one of the biggest financial decisions you'll make, and how you choose to own that property can have long-term implications for your rights, responsibilities, and estate planning. Understanding the different forms of property ownership can help you make informed choices that align with your personal and financial goals. This article explores the various ways to hold title to a home and how each affects ownership, control, and transferability. Types of Property Ownership and How They Impact Home Buyers 1. Sole Ownership If you buy a home in your name alone, you retain complete control over the property. However, there are key considerations: • Estate Planning: If you pass away, the property will be subject to probate and distributed according to your will or intestacy laws if you have no will. • Liability: Your personal creditors can place liens on the property if you have outstanding debts. • Flexibility: You can sell or transfer the property at any time without needing consent from a co-owner. 2. Joint Tenancy with Right of Survivorship (JTWROS) If you purchase a home with another person as joint tenants with the right of survivorship, you each own an equal share, and when one owner dies, the other automatically inherits the property without probate. Considerations include: • Avoids probate: Ownership transfers instantly upon one owner's death. • Shared control: Both owners must agree to sell or refinance the property. • Equal ownership: Each owner has an undivided 50% interest, regardless of contributions. 3. Tenancy by the Entirety This form of ownership is available only to married couples and offers significant benefits: • Survivorship rights: Like joint tenancy, the surviving spouse automatically inherits the property. • Creditor protection: In some cases, creditors of one spouse cannot force a sale of the home. • Spousal agreement required: Both spouses must agree to transfer or mortgage the property. 4. Tenancy in Common For buyers who want to own property with another person but maintain separate interests, tenancy in common offers flexibility: • No automatic survivorship: Your share passes to your heirs through probate rather than to the co-owner. • Unequal ownership possible: Each owner can hold a different percentage interest. • Individual control: You can sell or transfer your share independently of the other owner. 5. Life Estate A life estate arrangement can be useful for homeowners who want to retain the right to live in their home while ensuring it passes to a designated beneficiary after death: • Avoids probate: The property automatically transfers to the designated remainder beneficiary. • Limited control: The life tenant can use the property but cannot sell it without consent from the remainder beneficiaries. • Useful for estate planning: Commonly used to ensure a spouse or family member can remain in the home while securing future ownership. 6. Enhanced Life Estate (Lady Bird Deed) An Enhanced Life Estate Deed, also known as a Lady Bird Deed, allows the homeowner to retain full control over the property during their lifetime while designating beneficiaries to automatically receive the property upon death. This type of deed provides additional benefits over a traditional life estate: • Retained Control: The homeowner can sell, refinance, or transfer the property without needing consent from the remainder beneficiaries. • Avoids Probate: Upon the homeowner's death, the property passes directly to the named beneficiaries without going through probate. • Medicaid Planning: In some cases, an enhanced life estate deed can help protect assets from Medicaid estate recovery while allowing the homeowner to qualify for benefits. • Flexibility: Unlike a standard life estate, the homeowner is not restricted by the interests of the remainder beneficiaries and can change the beneficiaries at any time. How Ownership Affects Future Planning If You Buy a Home Without a Will or Trust If you purchase a home and do not have a will or trust in place, the state will determine what happens to your property if you pass away. This can lead to unintended consequences, such as property passing to heirs you did not intend or causing legal disputes among family members. Using a Trust to Hold Title Placing your home in a revocable living trust allows you to maintain control while simplifying future ownership transitions: • Avoids probate: The home passes to designated beneficiaries without court involvement. • Privacy: Trust documents are private, unlike a will which becomes public record during probate. • Flexibility: You can change beneficiaries or sell the home while you are alive. Choosing the Best Ownership Structure for You Selecting the right form of property ownership is an important decision when purchasing a home. Consider your long-term goals, estate planning needs, and potential tax and legal implications. Consulting with a Vermont real estate attorney can help ensure that your homeownership structure aligns with your future plans.

Buying a home for the first time is an exciting but complex process. With so many steps involved, it’s essential to understand the process and know which professionals to rely on at each stage. This guide walks you through the key steps and introduces you to the Professionals who will help make your home purchase smooth and successful. Step 1: Assess Your Finances and Get Pre-Approved for a Mortgage Who to Contact: Mortgage Lender or Broker A mortgage lender or broker helps you determine how much home you can afford and pre-approves you for a loan. A pre-approval letter strengthens your offer when you find a home. It’s wise to shop around for the best interest rates and loan terms. When to Contact: Before you start looking at homes. Step 2: Hire a Real Estate Agent Who to Contact: Buyer’s Real Estate Agent A real estate agent helps you find homes within your budget, schedules showings, negotiates on your behalf, and guides you through the entire purchase process. When to Contact: After you receive mortgage pre-approval. Step 3: Find a Home and Make an Offer Once you find a home you love, your agent will help you craft a competitive offer. If the seller accepts, the home will go under contract, leading to the next steps. Step 4: Hire a Real Estate Attorney Who to Contact: Real Estate Attorney In Vermont, hiring a real estate attorney is crucial. Your attorney will review contracts, negotiate terms, conduct a title search, and oversee the closing process to ensure everything is legally sound. When to Contact: As soon as your offer is accepted. Step 5: Schedule a Home Inspection Who to Contact: Home Inspector A home inspector assesses the property’s condition, identifying potential issues with the foundation, roof, electrical systems, plumbing, and more. If significant problems are found, the contract inspection contingency may allow you to renegotiate the price, request repairs or terminate the contract. When to Contact: Immediately after your offer is accepted. Step 6: Secure Financing and Order an Appraisal Who to Contact: Mortgage Lender & Appraiser Your lender will order an appraisal to confirm the home’s value aligns with the loan amount. Finalizing your mortgage involves submitting an application and documents and meeting lender requirements. When to Contact: Shortly after your offer is accepted. Step 7: Obtain Homeowners Insurance Who to Contact: Insurance Agent Most lenders require homeowners insurance before closing. This protects your home from risks like fire, theft, and natural disasters. When to Contact: Before closing, but start shopping early. Step 8: Conduct a Final Walkthrough Before closing, you’ll walk through the home to ensure everything is in the agreed-upon condition and any negotiated repairs have been completed. Step 9: Close on Your New Home Who to Contact: Real Estate Attorney, Title Company, and Mortgage Lender At closing, you’ll sign all necessary documents, pay closing costs, and officially take ownership of your new home. When to Contact: Your attorney and lender will schedule closing once all requirements are met. Final Thoughts Buying your first home involves multiple steps and requires working with various professionals to ensure a smooth transaction. By understanding the role or each professional and when to contact them, you can navigate the process with confidence. If you’re considering buying a home in Vermont, working with an experienced real estate attorney can help protect your investment and ensure a seamless closing process.

Understanding the Purchase and Sale Contract: Key Buyer Protections Explained

As a Vermont residential real estate law firm, we often encounter clients curious about reverse mortgages. This financial tool can be beneficial for certain homeowners, but it’s essential to understand its intricacies before making a decision. Let’s explore what a reverse mortgage is, who qualifies, why you might consider one, its drawbacks, and how to secure one. Additionally, we’ll highlight the role of a real estate attorney in the process. What Is a Reverse Mortgage? A reverse mortgage is a type of loan that allows homeowners to convert part of their home equity into cash. Unlike a traditional mortgage, where you make monthly payments to a lender, with a reverse mortgage, the lender makes payments to you. The loan is typically repaid when the homeowner sells the home, moves out permanently, or passes away. The most common type of reverse mortgage is a Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA). Private lenders may also offer proprietary reverse mortgages, often for higher-value homes. Who Qualifies for a Reverse Mortgage? To qualify for a reverse mortgage, you must meet the following criteria: • Be at least 62 years old (for HECMs). • Own your home outright or have a substantial amount of equity. • Live in the home as your primary residence. • Be financially capable of maintaining the property, including paying property taxes, homeowners insurance, and any applicable HOA fees. The property must also meet eligibility requirements, such as being a single-family home, a 2- to 4-unit property where you occupy one unit, or an FHA-approved condominium. Why Consider a Reverse Mortgage? Homeowners often consider reverse mortgages for several reasons: • Supplementing Retirement Income: They can provide a steady source of income for retirees who need additional funds. • Paying Off Debt: Proceeds can be used to eliminate existing mortgages or other debts, reducing financial stress. • Home Improvements or Medical Expenses: Funds can be allocated for necessary repairs, renovations, or medical needs. • No Monthly Payments: You don’t have to make monthly payments as long as you meet the loan conditions. Drawbacks of a Reverse Mortgage While reverse mortgages offer benefits, they also have potential downsides: • Reduced Equity: Borrowing against your home decreases your remaining equity, potentially leaving less for heirs. • Costs and Fees: Reverse mortgages can come with high upfront costs, including origination fees, mortgage insurance premiums, and closing costs. • Loan Repayment Triggers: The loan must be repaid if you move out permanently, sell the home, or fail to meet obligations like paying property taxes and insurance. • Impact on Government Benefits: Receiving reverse mortgage proceeds could affect eligibility for certain need-based programs like Medicaid. How to Get a Reverse Mortgage To obtain a reverse mortgage, follow these steps: 1. Consult a HUD-Approved Counselor: FHA requires that you meet with a housing counselor to ensure you understand the terms and implications. 2. Find a Lender: Choose a reputable lender experienced in reverse mortgages. 3. Application and Appraisal: Complete the application process and have your home appraised to determine its value. 4. Underwriting and Approval: The lender will review your application and, if approved, provide the loan documents for closing. 5. Closing: Sign the final paperwork and begin receiving funds according to the terms you selected (lump sum, line of credit, or monthly payments). The Role of a Real Estate Attorney in the Reverse Mortgage Process A real estate attorney plays a crucial role in ensuring the reverse mortgage process goes smoothly. Here’s how: • Title Search: The attorney conducts a title search to confirm there are no liens or encumbrances on the property that could complicate the reverse mortgage. • Reviewing Loan Documents: Your attorney ensures that the loan documents are accurate and that you understand the terms and obligations. • Resolving Title Issues: If title defects or disputes arise, the attorney works to resolve them before closing. • Facilitating Closing: The attorney coordinates with the lender and title company to oversee the closing process, ensuring all documents are properly executed and recorded. Conclusion A reverse mortgage can be a valuable tool for Vermont homeowners looking to access their home equity, but it’s essential to weigh the benefits against the potential drawbacks. Consulting a knowledgeable real estate attorney can provide peace of mind and ensure the process is handled with care and professionalism. If you’re considering a reverse mortgage, don’t hesitate to reach out to our office for guidance—we’re here to help you make informed decisions about your financial future.

Co-signing on a mortgage can feel like a generous way to help a family member or friend achieve their dream of homeownership. However, before you put pen to paper, it’s essential to understand the potential risks and obligations associated with co-signing. Here are the key points every potential co-signer should consider: 1. What Does It Mean to Co-Sign? When you co-sign a mortgage, you agree to take on equal responsibility for the loan. This means if the primary borrower fails to make payments, the lender will expect you to step in and cover the payments. The loan will also appear on your credit report, and your credit score could be affected by late payments or default. 2. Your Financial Liability Co-signing doesn’t just make you a back-up payer—you are fully liable for the mortgage debt. If the borrower defaults, the lender can pursue you for repayment, potentially leading to garnished wages or liens on your property. Before co-signing, ask yourself if you’re prepared to assume full responsibility for the mortgage if things go wrong. 3. Impact on Your Credit The mortgage will appear on your credit report, which could affect your debt-to-income ratio. This could make it more difficult for you to secure financing for your own needs, such as purchasing a car, refinancing your home, or taking out personal loans. 4. Limited Control Over the Property Even though you’re equally responsible for the mortgage, you won’t necessarily have any ownership rights to the property unless your name is on the deed. This lack of control can leave you in a vulnerable position if the borrower falls behind on payments or decides to sell the property without consulting you. 5. Strain on Relationships Money matters often lead to tension, and co-signing a mortgage is no exception. If the borrower struggles to make payments or defaults, your relationship could suffer. Before agreeing to co-sign, have an honest conversation about financial expectations and contingency plans. 6. Tax Implications If you’re forced to step in and make payments on the borrower’s behalf, you may be eligible to deduct the mortgage interest you paid. However, navigating tax implications can be complex, so consult with a tax professional to understand your rights and obligations. 7. Ways to Mitigate Risk If you decide to co-sign, consider these steps to protect yourself: • Review the Borrower’s Financials: Ensure the borrower has a stable income and good credit history. • Understand the Loan Terms: Review all loan documents carefully, and consider consulting with a real estate attorney. • Set Boundaries: Agree in advance on how you will handle missed payments or other issues. • Monitor the Account: Request access to the mortgage account to stay informed about payment activity. • Explore Alternatives: Instead of co-signing, you might offer to assist with a down payment or help the borrower build credit. 8. Consult a Real Estate Attorney Co-signing a mortgage is a significant legal and financial commitment. Speaking with a qualified real estate attorney can help you fully understand the implications and ensure your interests are protected. Final Thoughts While co-signing on a mortgage can be a generous gesture, it’s not a decision to take lightly. By understanding the risks, setting clear expectations, and consulting with professionals, you can make an informed choice that protects both your financial health and your relationship with the borrower. If you have questions about co-signing or other real estate matters in Vermont, the Peet Law Group is here to help. Contact us today for personalized guidance tailored to your unique situation.

The New Year is a time for fresh starts and big dreams, and if buying a home is one of your goals for the year, now is the perfect time to start planning. As a Vermont real estate attorneys, we know how important preparation is for a smooth and successful home-buying experience. Here are six New Year’s resolution tasks to help you on your journey to homeownership. 1. Evaluate Your Financial Health Buying a home is a major financial commitment, so start by getting your finances in order: • Review your credit score and credit report. Address any errors or areas for improvement. • Calculate your debt-to-income ratio to determine your borrowing capacity. • Build or maintain an emergency fund to cover unexpected expenses. • If needed, consult a financial advisor to help you set realistic goals and identify areas to strengthen before applying for a mortgage. 2. Create a Budget and Save for a Down Payment A clear budget can help you understand how much house you can afford. To prepare: • Determine your target down payment amount, typically 10-20% of the home’s purchase price. • Factor in additional costs such as closing fees, property taxes, and homeowners insurance. • Automate your savings to build your down payment fund consistently. • Remember, there are programs available for first-time homebuyers that may reduce your required down payment or provide financial assistance. 3. Get Pre-Approved for a Mortgage A mortgage pre-approval strengthens your buying power and shows sellers you’re serious. To get started: • Research lenders and compare mortgage rates and terms. • Gather necessary documentation, such as tax returns, pay stubs, and bank statements. • Understand the differences between fixed-rate and adjustable-rate mortgages to choose the best fit for your situation. • Pre-approval will also give you a clearer picture of your budget and help streamline the buying process. 4. Identify Your Home Needs and Wants Make a list of your must-haves and nice-to-haves to narrow down your search. Consider factors such as: • Location: Proximity to work, schools, and amenities. • Size: The number of bedrooms, bathrooms, and overall square footage. • Features: A backyard, energy efficiency, or specific architectural styles. • Being clear about your priorities will help you focus your search and avoid wasting time. 5. Work with a Real Estate Professional Partnering with a knowledgeable real estate agent is invaluable when navigating the housing market. They can: • Provide insights into market trends and neighborhood options. • Help you find homes that match your criteria. • Negotiate offers and guide you through the purchase process. • Start researching and interviewing agents early to find someone you trust. 6. Retain a Real Estate Attorney A real estate attorney is an essential part of the home-buying process, especially in Vermont. They can: • Review and explain purchase agreements, mortgage documents, and other legal paperwork. • Conduct a title search to ensure there are no legal issues with the property. • Assist with closing procedures to ensure all transactions are legally sound. • By retaining an attorney early in your journey, you’ll have peace of mind knowing you’re protected at every step. Plan Now to Achieve Your Homeownership Dream Buying a home is an exciting milestone, but it requires careful planning and dedication. By tackling these New Year’s resolution tasks now, you’ll set yourself up for a smooth and rewarding home-buying experience. If you’re ready to take the next step, feel free to contact our office for legal guidance. We’re here to help you navigate the home-buying process with confidence. Happy New Year, and best wishes on your path to homeownership!

The start of a new year is a perfect time to set goals, and if selling your home is one of them, now is the time to prepare. As a Vermont real estate attorneys, we know the value of starting early to maximize your home's appeal. Here are five New Year’s resolution tasks to help get your house market-ready for a successful sale later this year. 1. Declutter and Organize Over time, it’s easy for clutter to accumulate, making your space feel smaller and less inviting. Start the year by: • Decluttering each room one at a time. Use the "keep, donate, or toss" method to streamline the process. • Organizing closets, cabinets, and storage spaces—potential buyers will look inside! • Removing personal items like family photos to create a neutral space that allows buyers to envision themselves in your home. 2. Deep Clean Your Home A clean home makes a great first impression. Dedicate time to: • Shampoo carpets, polish hardwood floors, and deep clean tile grout. • Wash windows inside and out to let natural light shine in. • Dust ceiling fans, light fixtures, and baseboards. • Consider hiring professional cleaners for an extra touch of sparkle, especially before listing your home. 3. Address Maintenance Issues Small issues can turn off potential buyers or lead to lower offers. Create a checklist to: • Fix leaky faucets, squeaky doors, and loose doorknobs. • Replace burnt-out light bulbs and check that all appliances are functioning properly. • Schedule an HVAC tune-up to ensure your heating and cooling systems are in top shape. • Completing these tasks demonstrates to buyers that your home has been well cared for. 4. Boost Your Curb Appeal First impressions start at the curb. Even in Vermont’s winter months, you can enhance your home’s exterior by: • Keeping driveways and walkways clear of snow and debris. • Repainting or touching up the front door and shutters if weather permits. • Adding a new welcome mat and outdoor lighting for a warm, inviting feel. • As the weather warms, plan to spruce up landscaping with fresh mulch, trimmed hedges, and blooming flowers. 5. Consult a Real Estate Professional Partnering with a real estate agent early in the process provides invaluable insights. They can: • Recommend small, cost-effective upgrades to increase your home’s value. • Provide a market analysis to set realistic expectations for pricing. • Help you stage your home for maximum appeal. Additionally, consulting a real estate attorney ensures that you’re legally prepared for the selling process. From reviewing contracts to ensuring clear title, an attorney can help make the transaction smooth and stress-free. Plan Now for Success Later Selling your home is a significant undertaking, but with thoughtful planning and these resolutions, you can make the process easier and more rewarding. By starting early, you’ll be in a strong position to attract buyers and secure the best possible price for your home. If you’re ready to take the next step, feel free to contact our office. We’re here to provide legal guidance and support throughout your real estate journey. Happy New Year, and best of luck with your home-selling goals!