Co-Signing a Mortgage: A Generous Gesture or Financial Gamble?

Owner’s title insurance is a one-time purchase that protects your legal ownership of the property for as long as you hold an interest in it. It covers unexpected issues that may arise with your home’s title—issues that might not have been discovered during the title search. These can include: • Undisclosed or missing heirs who claim ownership after the sale • Errors or omissions in past deeds or public records • Forged documents or fraudulent transfers in the chain of title • Unknown liens, including unpaid taxes or contractor bills • Boundary or access disputes not revealed in surveys Even with the most thorough title search conducted by experienced Vermont real estate attorneys and title professionals, some risks remain hidden. Owner’s title insurance gives you peace of mind that your investment is protected. Lender’s Title Insurance is Not Protection for You It’s important to understand that lender’s title insurance is only for the benefit of the bank or mortgage company. If a title issue arises that affects your property’s ownership, the lender’s policy will not cover your legal fees, losses, or defense. Only an owner’s policy ensures that you, as the buyer, are protected Why It's Especially Important in Vermont Vermont’s real estate system is unique. Unlike many other states that use centralized title plants or guarantee title through the state, Vermont relies on local land records in separate towns and cities. Each municipality maintains its own handwritten or scanned land records, some dating back centuries. This decentralized system increases the chance of undetected title issues. Having a local real estate law firm like Peet Law Group—who understands the intricacies of Vermont’s land records—is essential. Still, even the most diligent title review can’t eliminate every risk. Owner’s title insurance fills that gap. One-Time Cost, Lifetime Coverage Owner’s title insurance is a one-time premium paid at closing, based on the home’s purchase price. In return, you receive lifetime coverage. Considering the potential legal costs and risks of an uncovered title issue, the cost of an owner’s policy is a small price to pay for long-term protection. Let Peet Law Group Help You Close with Confidence At Peet Law Group, we help Vermont home buyers navigate every step of the real estate closing process—from title search and contract review to issuing title insurance and final settlement. We work with title insurance underwriters to provide owner’s policies tailored to your transaction. Contact Peet Law Group today to learn more about how an owner’s title insurance policy can safeguard your Vermont home purchase—and your peace of mind.

We are proud to share that Peet Law Group has been named the Best Real Estate Law Firm in Vermont by Vermont Business Magazine in its 2025 Best of Business Awards. This recognition is an incredible honor, and we are deeply grateful to our clients, industry partners, colleagues, and the readers of Vermont Business Magazine for your continued trust and support. At Peet Law Group, we know that buying or selling a home is one of the most important transactions in a person's life. That’s why we’ve built our practice around providing dedicated, knowledgeable, and responsive legal services tailored to Vermont’s unique real estate landscape. This award affirms our ongoing commitment to serving Vermont families, real estate professionals, and lenders with care and excellence. Thank You to Our Community We want to take a moment to thank: • Our clients – for placing your trust in us during such a significant milestone in your life; • Our industry partners – including real estate agents, lenders, title insurers, and surveyors who collaborate with us every day to make transactions smooth and successful; • Our colleagues in the legal community – for your shared commitment to professionalism and client service; and • The readers of Vermont Business Magazine – for your votes and confidence in the work we do across the Green Mountain State. What We Do: Residential Real Estate Services As a Vermont residential real estate law firm, we focus on every step of the closing process, offering a full suite of services for buyers, sellers, and lenders. Our services include: • Title searches and resolving title issues; • Title insurance issuance and underwriting; • Purchase and sale contract review and negotiation; • Real estate closings for both residential homes and vacation properties; • Representation of buyers and sellers throughout the transaction; • Deed preparation and property transfers; • Coordination with local banks, Credit Unions and mortgage lenders; and • Legal guidance for out-of-state clients purchasing or selling Vermont property. Whether you’re a first-time homebuyer in Burlington, closing on a vacation cabin in the Northeast Kingdom, or selling a longtime family home in Rutland, our team is here to help. Local Knowledge, Personalized Attention What sets Peet Law Group apart is our deep-rooted knowledge of Vermont real estate law and our highly responsive client service. Our attorneys and experienced real estate paralegals live and work in the same communities we serve, and we understand the nuances of Vermont’s towns, permitting rules, title issues, and property tax concerns. We pride ourselves on being approachable, thorough, and attentive—whether you’re closing in two weeks or just starting to plan a future purchase. If you’re buying, selling, or refinancing real estate in Vermont, let our award-winning team guide you through the process with confidence. To learn more about how we can help or to schedule a consultation, visit www.peetlaw.com or call us today.

If you're planning to buy or sell a home in Vermont, you may be wondering whether you really need to hire a Real Estate Agent. At Peet Law Group, we work closely with Real Estate Agents across the state and see firsthand the value they bring to both buyers and sellers in residential real estate transactions. From expertly marketing your property to managing transaction details and coordinating with your real estate attorney, a good Realtor can make the entire process smoother and more successful. What Does a Real Estate Agent Actually Do? Real Estate Agents are usually Realtors who are licensed real estate professionals and are members of the National Association of REALTORS®. Realtors must follow a strict code of ethics. In Vermont, Realtors play a crucial role in helping clients navigate the unique features of our local real estate market, including rural property issues, septic and water systems, and local permitting requirements. Here are some of the key services a Real Estate Agent or Realtor provides: For Sellers: 1. Pricing Strategy & Market Analysis A Realtor will perform a comparative market analysis (CMA) to help you price your home competitively, taking into account recent sales, local demand, and unique property features. 2. Professional Marketing Realtors market homes through a wide range of channels: • MLS (Multiple Listing Service) • Online listings (Zillow, Realtor.com, etc.) • Social media • Email campaigns • Open houses and private showings • Networking with other agents These strategies significantly boost your home’s visibility and reach qualified buyers. 3. Staging & Presentation Advice Realtors help you prepare your home for the market by offering suggestions on repairs, staging, and curb appeal to attract buyers. For Buyers: 1. Access to Listings A Realtor has access to up-to-date MLS listings and can identify properties that meet your criteria, sometimes even before they’re officially on the market. 2. Local Knowledge In Vermont, issues like private roads, deeded water access, and Act 250 regulations can complicate transactions. Realtors are familiar with local nuances and can help you avoid pitfalls. 3. Negotiation Skills Whether you're buying or selling, a Realtor helps negotiate the best price and terms—based on comparable sales and their experience with local market trends. Transaction Management Benefits Real estate deals involve many moving parts: • Offers and counteroffers • Purchase and sale contracts • Contingencies (home inspection, financing, septic inspections) • Deadlines and disclosures • Title searches and property surveys A Realtor tracks these details and coordinates communication among all parties, including inspectors, lenders, and attorneys. This reduces the risk of missed deadlines or misunderstandings that could delay or jeopardize the closing. How Realtors Work with Real Estate Attorneys In Vermont, attorneys play a key role in real estate closings, particularly in preparing and reviewing legal documents, performing title searches, and managing funds through their escrow accounts. The collaboration between your Realtor and your attorney is vital to a smooth transaction. Here's how the partnership typically works: • Contract Coordination: Once an offer is accepted, the Realtor sends the fully executed purchase and sale contract to the attorney for review. • Document Collection: Realtors often assist in gathering necessary documents for the attorney, such as property disclosures or prior deeds. • Scheduling: Realtors help coordinate inspections, appraisals, and final walk-throughs, keeping your attorney informed of important dates. • Problem-Solving: If issues arise—such as title defects or repair negotiations—your Realtor and attorney work together to resolve them and protect your interests. Conclusion Working with a Realtor when buying or selling a home in Vermont offers numerous benefits, from marketing expertise and negotiation skills to transaction management and collaboration with your attorney. At Peet Law Group, we value the important role Realtors play and work seamlessly with them to ensure your home purchase or sale goes as smoothly as possible. If you’re preparing to enter the Vermont real estate market and have questions about legal representation, contact us today at www.peetlaw.com or call us to schedule a consultation. We’re here to guide you through every step of the closing process.

Understanding the Seller’s Property Information Report (SPIR) in Vermont Real Estate Transactions Why Full Disclosure Benefits Both Buyers and Sellers In Vermont, selling a home involves several important disclosures, one of which is the Seller’s Property Information Report (SPIR). This document provides potential buyers with crucial details about the property's condition and history. While Vermont law does not mandate that sellers complete a SPIR, many real estate professionals strongly encourage it as a best practice for a transparent and smooth transaction. What Is a Seller’s Property Information Report (SPIR)? The SPIR is a standardized form in Vermont used by home sellers to disclose material facts about the condition of their property. It provides buyers with a clear picture of known defects, past repairs, and other relevant property details, helping them make an informed purchasing decision. What Does a SPIR Include? A typical SPIR covers various aspects of the property, including: • Structural Components – Information about the foundation, roof, walls, and any known defects or repairs. • Utilities and Systems – Details about the plumbing, electrical, heating, and cooling systems, including their age and functionality. • Water and Septic Systems – Information about the type of water supply (private well or municipal) and any septic system specifics, including past maintenance. • Environmental and Health Hazards – Disclosure of radon levels, lead paint, asbestos, mold, or other known environmental risks. • Pest Issues – History of infestations such as termites, carpenter ants, or rodents. • Legal and Zoning Matters – Information regarding boundary disputes, easements, encroachments, or homeowner association (HOA) obligations. • Past Repairs and Renovations – Disclosure of significant work done on the property, including whether the necessary permits were obtained. When Is the SPIR Completed and Presented? Sellers typically complete the SPIR early in the listing process, ideally before the property is actively marketed. Real estate agents often advise sellers to fill out the form honestly and accurately to avoid future legal complications. The completed report is then provided to prospective buyers when they express serious interest in the property, often before submitting an offer. Why Is the SPIR Important for Both Buyers and Sellers? Benefits for Buyers • Informed Decision-Making – Buyers gain a clearer understanding of the property's condition before making a financial commitment. • Reduced Surprises – Knowing about potential issues beforehand allows buyers to budget for future repairs or negotiate contingencies in their offer. • Legal Protection – If a seller provides inaccurate or misleading information, buyers may have legal recourse. Benefits for Sellers • Minimizing Legal Risk – Honest and full disclosure helps prevent accusations of misrepresentation, reducing the likelihood of future disputes or lawsuits. • Smoother Negotiations – A well-documented property history can foster buyer confidence and lead to a quicker, more straightforward sale. • Building Trust – Transparency enhances credibility with potential buyers, making them more likely to proceed with the purchase. Conclusion While Vermont does not legally require sellers to complete a SPIR, doing so is a prudent step in any real estate transaction. Providing a detailed and accurate SPIR can help facilitate a smoother sale, protect both parties from future disputes, and create an atmosphere of trust between buyers and sellers. If you are considering selling your Vermont home, consulting with a knowledgeable real estate attorney or agent can ensure you complete the SPIR correctly and in your best interest.

A Power of Attorney (POA) is a legal document that allows one person (the "principal") to grant another person (the "agent" or "attorney-in-fact") the authority to act on their behalf in legal and financial matters. In real estate transactions, a POA can be a useful tool for both buyers and sellers who are unable to attend a closing or sign documents in person. However, using a POA in a real estate deal comes with certain requirements and risks that should be carefully considered. How Buyers and Sellers Can Use a Power of Attorney A POA can be particularly helpful in the following real estate situations: For Sellers: • If a seller is out of town or unavailable on the closing date, they can appoint an agent to sign the necessary paperwork on their behalf. • A POA can be used when a property owner is incapacitated and needs a trusted person to handle the sale. • Investors or property managers who own multiple properties can use a POA to authorize an agent to handle sales and sign documents without their direct involvement. For Buyers: • Buyers who are relocating and cannot be physically present for closing can use a POA to designate someone to finalize the transaction. • If a buyer is in the military or traveling internationally, a POA allows a trusted individual to act on their behalf. • Some investors use a POA to have an agent manage multiple purchases without needing to be present. Lender Approval for Using a Power of Attorney to Sign Loan Documents When financing a property purchase, lenders often require additional scrutiny when a POA is involved. Mortgage lenders typically have strict guidelines regarding the use of a POA, including: • Prior Approval: Many lenders require advance approval before allowing a POA to be used for loan documents. • Specificity: The POA must clearly specify the agent’s authority to sign mortgage documents, promissory notes, and other required paperwork. • Notarization and Witnesses: Lenders may require that the POA be notarized and witnessed to prevent fraud. • Original Copy Requirement: Some lenders will only accept an original POA document, not a photocopy. • Limited vs. General POA: A lender may require a limited POA, which grants authority solely for the real estate transaction, rather than a broad general POA. Because each lender has different policies, it is crucial to confirm with the lender well in advance whether a POA will be accepted for signing loan documents. Risks Associated with Using a Power of Attorney in Real Estate Transactions While a POA can be convenient, it also presents certain risks, including: 1. Seller Impersonation & Fraud One of the biggest concerns with POAs in real estate transactions is fraud, particularly seller impersonation. In some cases, fraudsters have used forged or fraudulent POAs to sell properties without the rightful owner’s knowledge. To mitigate this risk: • Ensure the POA is properly executed and notarized. • Verify the identity of the principal and agent before accepting a POA. • Work with a reputable title company or attorney who can confirm the legitimacy of the POA. 2. Unauthorized or Unintended Transactions A poorly drafted POA may give the agent more power than the principal intended. For example, an agent with broad authority under a general POA could transfer property or take actions the principal did not anticipate. To prevent this: • Use a limited POA that only grants authority for a specific transaction. • Clearly define the agent’s powers and restrictions in the POA document. 3. Lender Rejection Even if a POA is legally valid, a lender may still reject it, delaying the closing process. Buyers should check with the lender early in the transaction to ensure compliance. 4. Potential Challenges in Court If a dispute arises over a transaction conducted via POA, a court may review whether the agent acted in the principal’s best interest. This can lead to legal complications and potential voiding of the transaction if fraud or misrepresentation is suspected. Best Practices When Using a Power of Attorney for Real Estate Transactions To minimize risks and ensure a smooth transaction, consider the following best practices: • Draft a POA with an experienced real estate attorney to ensure it meets legal and lender requirements. • Use a Limited POA that is specific to the transaction rather than a broad general POA. • Have the POA notarized and witnessed to increase its legitimacy. • Confirm lender acceptance in advance to avoid delays or denials at closing. • Verify the identity of the agent to prevent fraud or unauthorized transactions. • Work with a reputable attorney who understands POA transactions and can assist with due diligence. Conclusion A Power of Attorney can be a valuable tool for buyers and sellers who need flexibility in their real estate transactions. However, it is essential to ensure that the POA complies with lender requirements, is properly drafted, and does not expose the principal to unnecessary risks. Consulting with an experienced real estate attorney can help navigate these issues and ensure a secure and successful transaction. If you have questions about using a Power of Attorney in a Vermont real estate transaction, contact our office today for guidance.

A Loan Estimate (LE) is a standardized form that provides borrowers with key details about a mortgage offer. Lenders are required to issue the Loan Estimate within three business days of receiving a borrower's mortgage application. This document is crucial because it outlines important loan terms, estimated payments, and closing costs in a clear and concise manner. The Loan Estimate was introduced in 2015 as part of the TILA-RESPA Integrated Disclosure (TRID) Rule, which combined elements of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). The goal is to improve transparency in the lending process and help borrowers understand the true cost of their mortgage. Key Sections of the Loan Estimate The Loan Estimate consists of several important sections: 1. Loan Terms o Displays the loan amount, interest rate, and monthly principal and interest payment. o Indicates whether the loan has features like a prepayment penalty or balloon payment. 2. Projected Payments o Breaks down estimated monthly payments, including principal, interest, taxes, insurance, and any mortgage insurance requirements. o Shows how payments may change over time if the loan has an adjustable rate. 3. Costs at Closing o Summarizes the estimated closing costs and the amount the buyer will need to bring to closing. 4. Loan Costs o Lists origination fees, points, and other lender fees. o Includes third-party service costs such as appraisal and title services. 5. Other Costs o Covers prepaid items like property taxes and homeowner’s insurance. o Discloses government recording fees and transfer taxes. 6. Comparisons o Shows how much the borrower will have paid in principal and interest after five years. o Provides an Annual Percentage Rate (APR) and Total Interest Percentage (TIP) to help borrowers compare loan options. 7. Additional Information o Identifies the lender and loan officer’s contact details. o Provides information about late payment fees and whether the loan can be assumed by another borrower in the future. How Can Home Buyers Use a Loan Estimate? A Loan Estimate is not just a document—it is a powerful tool that can help home buyers make the best mortgage decision. Here’s how: 1. Compare Loan Offers o Since all lenders use the same Loan Estimate format, buyers can easily compare loan terms, interest rates, and closing costs between different lenders. o This comparison can help buyers identify the most affordable loan for their needs. 2. Understand Total Loan Costs o The Loan Estimate reveals not only the monthly payment but also the total costs over time. Buyers should pay close attention to the APR, which reflects the total cost of borrowing. 3. Avoid Surprises at Closing o The Loan Estimate helps home buyers anticipate out-of-pocket expenses for closing. Later in the process, buyers will receive a Closing Disclosure, which should closely match the Loan Estimate unless there are valid reasons for changes. 4. Ask Questions and Negotiate o If something seems unclear or unexpectedly high in the Loan Estimate, buyers can ask the lender for clarification. o Some fees, such as lender origination charges, may be negotiable. Buyers can use competing Loan Estimates to negotiate better terms. 5. Identify Potential Risks o If the Loan Estimate shows a loan with a balloon payment, prepayment penalty, or an adjustable interest rate, the buyer should consider whether those terms align with their financial goals. Final Thoughts A Loan Estimate is one of the most valuable tools available to home buyers navigating the mortgage process. By carefully reviewing this document and comparing offers, buyers can make informed financial decisions and avoid unnecessary costs. At the Peet Law Group, we help home buyers in Vermont understand the complexities of real estate transactions, from reviewing Loan Estimates to ensuring smooth closings. If you have questions about the mortgage process or need assistance with your home purchase, contact our experienced real estate attorneys today.

Purchasing or selling a home is one of the most significant financial transactions most people will undertake. Engaging a real estate attorney at the right time can ensure that the process goes smoothly, potential pitfalls are avoided, and your legal interests are protected. Ideally, you should involve an attorney before signing the Purchase and Sale Contract or, at the very latest, before the expiration of an attorney review contingency if one is included in the contract. The Role of a Real Estate Attorney Throughout the Transaction A real estate attorney plays a crucial role in guiding buyers and sellers through the legal aspects of a real estate transaction. Their responsibilities typically include: 1. Contract Review – Ensuring the Purchase and Sale Contract protects your interests and that its terms align with your expectations. 2. Title Search and Examination – Investigating the property’s title to confirm ownership and identify any liens, encumbrances, or title defects. 3. Coordination with Lenders and Agents – Working with mortgage lenders, real estate agents, and title companies to facilitate a smooth transaction. 4. Preparation and Review of Closing Documents – Ensuring all necessary legal documents, such as the deed, closing statement, and mortgage documents, are correctly prepared and in compliance with state law. 5. Conducting the Closing – Overseeing the final transaction, ensuring funds are properly distributed, and confirming that all documents are correctly executed and recorded. Why the Purchase and Sale Contract Is Critical The Purchase and Sale Contract is one of the most important documents in a real estate transaction. It outlines the terms of the sale, including the purchase price, contingencies, closing date, and responsibilities of both the buyer and seller. This contract legally binds both parties, making it essential that its terms are carefully reviewed and negotiated before signing. Without proper legal review, buyers and sellers may find themselves bound to unfavorable terms, unexpected obligations, or contractual disputes. A real estate attorney ensures that the contract accurately reflects the parties’ agreement and that there are no ambiguous or problematic clauses. The Importance of Attorney Review Contingencies An attorney review contingency is a clause in the Purchase and Sale Contract that allows either party’s attorney to review and amend the contract within a specified timeframe, typically within a few days of signing. If the attorney identifies issues or unfavorable terms, they can propose changes, negotiate modifications, or even cancel the contract without penalties if necessary. If an attorney review contingency is included, it is crucial to engage an attorney as soon as possible after signing. Once the contingency period expires, the contract becomes legally binding in its current form, meaning any unfavorable terms cannot easily be changed. By involving a real estate attorney early in the process, buyers and sellers can avoid costly mistakes, protect their legal rights, and proceed with confidence. Whether you are buying or selling property, an experienced real estate attorney is an invaluable partner in ensuring a successful and legally secure transaction.

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.

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.