An act relating to selling real property within a FEMA mapped flood hazard area
H.106 amends Vermont’s real estate disclosure law to require sellers to give buyers clearer notice about flood risk when selling property. The bill removes the prior disclosure questions focused specifically on whether a property is in a FEMA mapped special or moderate flood hazard area and replaces them with broader, more practical disclosures: a copy or digital link to the official FEMA flood insurance rate map, notice if no map is available for the community, whether the property has experienced flooding or flood damage while the seller owned it, and whether flood insurance is maintained or required by law.
The bill also preserves buyer remedies if the required information is not provided. A buyer may terminate the contract before title transfer or occupancy if the seller fails to disclose, and may sue for damages and attorney’s fees, with punitive damages available if the seller knowingly withheld the information. At the same time, the bill limits seller liability when incorrect information came from a public body or a licensed professional whose written report the seller reasonably relied on, and it clarifies that disclosure failures do not affect marketability of title. The act takes effect September 1, 2025.
This bill amends 27 V.S.A. § 380, Vermont’s statute governing disclosure of information in real estate conveyances, by expanding and refining flood-related disclosure obligations for sellers. It shifts the focus from a simple yes/no designation of FEMA flood hazard area status to more detailed information about flood maps, prior flooding or flood damage, and flood insurance requirements. It also creates or preserves civil remedies for buyers and clarifies limits on seller liability and title consequences.
The available record suggests the bill was enacted without recorded committee debate or voting controversy in the provided materials. The overall policy direction appears protective of buyers and oriented toward transparency and flood-risk awareness, with no documented opposition in the supplied transcripts or vote history. The governor signed the bill on June 11, 2025, indicating final approval.
The main policy tension in the bill is between stronger buyer disclosure and limiting burdens on sellers. Buyer-side protections include the right to terminate, recover damages, and seek punitive damages for knowing nondisclosure. Seller-side protections include a safe harbor for reliance on public-body information or professional reports, and a statement that noncompliance does not cloud title. Because no committee transcripts or votes were provided, no specific legislators, stakeholders, or organized opponents are identifiable from the record.