Vermont General Assembly Revises Flood Disclosure Requirements for Real Estate Transactions
May 16, 2025 | Economic Development, Housing & General Affairs, SENATE, Committees, Legislative , Vermont
This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »
The Vermont Senate Economic Development Committee convened on May 15, 2025, to discuss proposed amendments to House Bill 106, focusing on flood insurance disclosure requirements for real estate transactions. The meeting highlighted significant changes aimed at enhancing buyer awareness regarding flood risks associated with properties.
The primary amendment discussed involves the requirement for sellers to provide buyers with a physical or electronic copy of the official flood insurance rate map published by the Federal Emergency Management Agency (FEMA). This change replaces previous language that required sellers to determine whether a property is located within a flood hazard area. The committee emphasized that providing the map directly to buyers is an effective way to ensure they are informed about potential flood risks.
Additionally, the amendment maintains the obligation for sellers to disclose any flood damage that occurred while they owned the property and whether they currently maintain flood insurance. The committee debated the necessity of including a binding section in the bill, ultimately deciding that if the bill is applied prospectively, such a section may not be needed.
The committee also discussed the effective date of the amendments, with options for either September 1 or October 1, 2025. The choice of date will align with fiscal considerations and the legislative calendar.
In the findings section, the committee noted the impact of recent catastrophic floods in Vermont and the need for clear disclosure requirements to protect buyers. The findings assert that many areas lack digitized flood maps, which could pose compliance risks for sellers. The committee acknowledged the importance of ensuring that buyers are adequately informed about flood risks, while also recognizing that buyers have the capability to conduct their own research.
Overall, the proposed amendments aim to strengthen transparency in real estate transactions related to flood risks, ensuring that buyers are better equipped to make informed decisions. The committee's discussions will continue as they refine the bill before its final approval.
The primary amendment discussed involves the requirement for sellers to provide buyers with a physical or electronic copy of the official flood insurance rate map published by the Federal Emergency Management Agency (FEMA). This change replaces previous language that required sellers to determine whether a property is located within a flood hazard area. The committee emphasized that providing the map directly to buyers is an effective way to ensure they are informed about potential flood risks.
Additionally, the amendment maintains the obligation for sellers to disclose any flood damage that occurred while they owned the property and whether they currently maintain flood insurance. The committee debated the necessity of including a binding section in the bill, ultimately deciding that if the bill is applied prospectively, such a section may not be needed.
The committee also discussed the effective date of the amendments, with options for either September 1 or October 1, 2025. The choice of date will align with fiscal considerations and the legislative calendar.
In the findings section, the committee noted the impact of recent catastrophic floods in Vermont and the need for clear disclosure requirements to protect buyers. The findings assert that many areas lack digitized flood maps, which could pose compliance risks for sellers. The committee acknowledged the importance of ensuring that buyers are adequately informed about flood risks, while also recognizing that buyers have the capability to conduct their own research.
Overall, the proposed amendments aim to strengthen transparency in real estate transactions related to flood risks, ensuring that buyers are better equipped to make informed decisions. The committee's discussions will continue as they refine the bill before its final approval.
View full meeting
This article is based on a recent meeting—watch the full video and explore the complete transcript for deeper insights into the discussion.
View full meeting