Vermont situation guide · Updated November 2026

Wholesaling Condemned Houses in Vermont

Wholesaling condemned houses in Vermont means contracting for a home that a town has declared unfit to occupy and assigning the contract to a buyer who can legally repair or remove it. In Rutland, aging housing and blight programs create these leads. The key is learning exactly what the order requires.

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The short answer

Can you wholesale a condemned house in Vermont?

Yes, you can contract for a condemned Vermont house and assign it, provided you understand the order, tell the owner about your plan in writing and respect broker licensing rules. Ask an attorney first, because no Vermont wholesaler statute was found.

Condemned usually means a local official found the building unsafe to live in. The order may set conditions for repair, demolition or boarding. Because local procedures differ, get the paper itself and call the office that issued it. Our condemned house guide explains the common stages.

Never promise a buyer a re-occupancy date you cannot support. Ask for the inspector’s list, and price each fix with a contractor and the repair cost guide. Add a generous inspection contingency to your contract so you can leave if the structure is worse than reported.

Condemned Houses in Vermont at a glance

Wholesaler lawNot found in our review; verify
LicensingFrequent paid deals may need a broker license
Order sourceTown or city rules vary; get the order
Tax saleOne-year redemption at 1% per month (32 V.S.A. 5260)
Buyer taxNon-occupant buyers can pay the 3.4% rate
Your edgeA clear read of the order

The opportunity

Why condemned houses create deals in Vermont

Rutland has older multi-family conversions and some long-vacant buildings, and the city’s blight and code work is well known. Owners of a condemned house often cannot sell through an agent, cannot get a mortgage buyer and cannot afford the fix. A cash buyer with a plan is sometimes the only exit. That gives a careful wholesaler room to help.

Stuck owners

People who inherited a failing building often want out.

Banks and tax collectors

Delinquent owners may sell before a tax sale takes the property.

Thin competition

Few buyers can read a condemnation order with confidence.

Lead sources

Where to find condemned house leads in Rutland

  • Town and city records. Ask which orders are public and how to request them.
  • Boarded-up buildings. Look for placards, plywood and overgrown lots. See zombie properties.
  • Tax delinquency. Owners behind on tax may be near a sale. See tax lien vs tax deed.
  • Foreclosure filings. Vacant, failing buildings often appear in pre-foreclosure and tax leads.
  • Neighbors and contractors. Locals know which houses have been empty for years.

Your exit

Who buys condemned houses in Vermont

Demolition-minded investors, builders who want the lot and experienced rehabbers are the main buyers. Each wants different information. A builder wants the lot size and utilities, while a rehabber wants the framing, roof and the inspector’s list.

Many lenders will not fund a condemned house, so buyers usually pay cash. Share the order, photos and your title findings. Check your figures with the ARV calculator and MAO calculator, and ask what each buyer needs to see in a due diligence file.

Step by step

How to start wholesaling condemned houses in Vermont

  1. Get the order. Obtain the notice and ask the issuing office what cures it.
  2. Check the title. Look for liens and open taxes with a title search.
  3. Walk it if safe. Never enter a structure that is unsafe, and use exterior photos instead.
  4. Price the outcome. Compare repair against demolition and a new-build lot.
  5. Contract and disclose. Include a long inspection period and tell the owner you may assign.
  6. Market to cash buyers. Share the order and a short summary.
  7. Wrap up at closing. An investor-friendly title company can settle liens from the proceeds.

Your checklist for wholesaling Condemned Houses in Vermont

  • Obtain the actual order, not a summary.
  • Run a title search for liens and taxes.
  • Do not enter unsafe structures.
  • Price repair and demolition both.
  • Get a legal opinion on broker rules.

A Vermont example: a condemned house in Rutland

Value as a rebuilt house$235,000
Repairs to lift the order$82,000
Buyer margin$35,000
Contract price$105,000
Assignment fee$13,000
Buyer pays$118,000

The figures in this example are invented. An heir in Rutland owned a two-story house with a failed roof section, and the city had posted it as unfit to occupy. The heir lived out of state and had no cash for repairs.

You got the order, ran a title search and found only unpaid taxes. A contractor priced the repairs at $82,000. You contracted at $105,000 with a long inspection period and a right to assign.

A local rehabber paid $118,000 for the contract, so your fee was $13,000. The title company paid the taxes from proceeds, and the buyer started work after the city approved the plan.

Vermont rules to know

Orders, tax sales and licensing

Orders come from local officials, and each one has its own terms, so read it closely and ask the office what ends it. If taxes are behind, Vermont’s tax sale rules in 32 V.S.A. 5252 and 5260 matter: a tax sale warrant may be extended when at least $1,500 is owed for over a year after a repayment plan is offered, and redemption runs one year at 1% per month. Check current text.

No wholesaler-specific Vermont law showed up. The licensing rules at 26 V.S.A. 2211 and 2212 could still matter when you do paid deals repeatedly, since the exemption is worded for a bona fide owner and may leave out a contract buyer. Speak with a lawyer. See our license guide and legality overview.

Learn it with a mentor

Read the order before you bid

Condemned deals are won by reading the paperwork. Mentorship students send us orders and title reports, and we help them decide what to pass on.

FAQ

Condemned Houses in Vermont: common questions

Is wholesaling condemned houses in Vermont legal?

We did not find a Vermont statute for wholesalers, or one that bars selling a condemned house. The broker chapter can still come into play if you earn fees on many deals. Ask a lawyer or the licensing office, and check current text for changes before advertising.

What does condemned mean in Vermont?

It generally means a local official found a building unsafe to occupy, but procedures and wording vary by town. The order may allow repair, require demolition or restrict entry. Always read the actual document and call the issuing office to learn what cures it before you set a price.

Can I sell a condemned house to a buyer with a loan?

Most mortgage lenders will not fund a house that cannot be occupied, so buyers typically use cash or renovation money. Plan your buyer list around cash investors and builders. Tell each buyer about the order up front, since a surprise late in the deal usually ends it.

What if the owner owes property taxes?

Delinquent taxes can lead to a tax sale. Vermont allows redemption within one year of the sale by paying the price plus 1% per month under 32 V.S.A. 5260. Time matters, so check the status with the town, check current text and have a title company confirm payoffs.

Who pays transfer tax on a condemned house?

Practice varies, so confirm with your title company. Under 32 V.S.A. 9602, residential buyers who will not live there can face 3.4%, a principal residence pays less, and the base rate is 1.25%. Check current text and ask the Department of Taxes how it treats an unfit building.

Keep going

More Vermont wholesaling guides

Read the full Vermont wholesaling guide or pick another situation below.

Your next step

Turn an unfit house into a clean exit

Share the order and the title report. We will help you judge the risk and the numbers.

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