Vermont situation guide · Updated November 2026

Wholesaling Code Violation Properties in Vermont

Wholesaling code violation properties in Vermont means finding owners who have received a city notice about their building, contracting at a discount and assigning to a buyer who will fix the issues. In Burlington, rental housing inspections and older multi-unit buildings create these leads. The deal depends on knowing what the notice requires.

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The short answer

Can you wholesale a code violation property in Vermont?

Yes, you can contract for a Vermont property with a code violation and assign the contract, as long as you read the notice, disclose your plan in writing and follow broker licensing rules. Check with an attorney, since no Vermont wholesaler statute was found.

A notice is a to-do list with a deadline. Read it for the exact items, the date for compliance and whether a fine is building. Ask the owner for every letter, photo and inspector contact. Our code violation leads guide explains where these notices come from.

Then price the work. Some violations are cosmetic, such as peeling paint or missing handrails, while others involve egress, electrical or heating systems. Get a contractor’s number for each item using the repair cost guide, and verify the status with the city before you sign. Your offer should name the notice.

Code Violation Properties in Vermont at a glance

Wholesaler law	No statute for wholesalers found
Licensing	Broker rules may reach regular paid deals
Local codes	City rules and inspections vary by town
Lead paint	Health Department steps can apply to older homes
Tenant rules	9 V.S.A. chapter 137 can apply
Your edge	A priced, line-by-line fix list

The opportunity

Why code violation properties create deals in Vermont

Burlington’s dense older housing, with many one-to-four unit buildings near the university and the Old North End, means a steady flow of inspections. Small landlords who fall behind on repairs may face fines, tenant complaints and stress. Many would rather sell than fund a long punch list. Buyers who can handle permits and trades will pay for a clear scope.

Small landlords

Owners with one or two buildings often lack the cash for a long list.

Out-of-state owners

Distant owners dislike dealing with city staff and local trades.

Inherited buildings

Heirs who inherit a flagged property may prefer to sell as is.

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Lead sources

Where to find code violation leads in Burlington

City inspection records. Ask what notices and orders are public, and check current access rules.
Driving the neighborhoods. Look for posted notices, dumpsters and vacant units. See driving for dollars.
Landlord groups. Local owners hear about colleagues who want out.
Tax and lien lists. Fines can pile up alongside delinquent taxes.
Skip tracing. Use skip tracing to reach owners who live elsewhere.

Your exit

Who buys code violation properties in Vermont

Contractors and rehabbers who already work with the city inspector are the strongest buyers. They know how to schedule a re-inspection and get a certificate. Landlords who want more units may also buy, especially in areas with low vacancy.

Share the notice, your fix list and any cost quotes with buyers. A buyer who sees the full picture can act fast. Check the numbers using the ARV calculator and the MAO calculator, and review certificate of occupancy steps with your buyer.

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Step by step

How to start wholesaling code violation properties in Vermont

Collect the notice. Get every letter, order and deadline from the owner.
Confirm status. Call the city office to verify what is open and what has been cleared.
Price each fix. Ask a contractor for a number per item.
Make the offer. Set it using the ARV method minus the fix list and fines.
Disclose. Tell the owner in writing that you may assign the contract.
Market with the notice. Share the scope and deadline with buyers.
Clear title. Have an investor-friendly title company pay off any liens at the table.

Your checklist for wholesaling Code Violation Properties in Vermont

Read the notice twice and note every deadline.
Confirm the city has no liens beyond the notice.
Get a trade quote for each listed item.
Check whether tenants live in the building.
Ask a lawyer where the licensing line sits.

A Vermont example: a flagged triplex in Burlington

Likely repaired value	$640,000
Fix list and permits	$72,000
Buyer margin	$68,000
Contract price	$455,000
Assignment fee	$15,000
Buyer pays	$470,000

A made-up scenario shows the math. A retiree in Burlington owned a three-unit building and had received an inspection notice about smoke detectors, a rear stair and exposed wiring in one unit. She was tired of the calls and wanted out.

You got the letters, confirmed the open items with the city and priced the fixes at $72,000 with permits. You contracted for $455,000, with a right to assign and a clause about the notice.

A contractor-investor bought the contract for $470,000, so your fee was $15,000. The buyer finished the work, passed re-inspection and kept the building as a rental.

Vermont rules to know

City rules, licensing and tenant protection

Vermont towns write and enforce their own housing and building rules, so what applies in Burlington may differ from what applies elsewhere. Do not assume a notice transfers or goes away at sale, and ask the city what a buyer must do. Residential rental law in 9 V.S.A. chapter 137 can also apply when units are occupied. Check current text.

Our research found no wholesaler statute in Vermont. Broker licensing under 26 V.S.A. 2211 and 2212 is still the area to watch, because the owner carve-out in 2211(b)(1) names a bona fide owner, and a contract holder may not count. A lawyer can tell you more. See our legality guide and attorney guide.

Learn it with a mentor

Turn a notice into a plan

A city letter can scare owners and new investors alike. Mentorship students share their notices with us, and we help them turn each one into a scope and a safe offer.

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FAQ

Code Violation Properties in Vermont: common questions

Is wholesaling code violation properties in Vermont legal?

Assigning a contract is not banned outright, and we found no statute written for wholesalers. The broker chapter in Title 26 can still matter if you do paid deals often. Get legal advice or ask the state licensing office, and read current text before you advertise or grow.

Does a code violation stay with the property after a sale?

Often the obligation follows the building, but local rules vary. Ask the city exactly what a new owner must do and by when, and get the answer in writing if you can. Put the notice in your contract and tell buyers before they commit.

Can fines become a lien on the house?

Local enforcement may include fines or charges, and some can be recorded against the property. Confirm with the city and a title search before closing. A title company can often pay off known items at the table, so ask for a title report early.

How do I find code violation leads in Burlington?

Ask the city which notices are public, drive older neighborhoods, and talk with local landlords and contractors. Cross-check owners with land records kept by the city clerk. Reach out with respect, because the owner may already be under stress from inspectors.

What if tenants live in the property?

Tenant rights continue through a sale in most cases, and Vermont has rental rules in 9 V.S.A. chapter 137. Check current text and speak with an attorney before you promise anyone a move-out date. Our tenant-occupied guide explains how to work with occupied buildings.