Vermont situation guide · Updated November 2026

Wholesaling Seller-Financed Deals in Vermont

Wholesaling seller-financed deals in Vermont means contracting with an owner, for example in Burlington, who will carry the loan, then assigning that contract to a buyer who wants those terms. No wholesaler-specific statute was found, so broker-license questions and note paperwork both need an attorney.

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The short answer

Can you wholesale a seller-financed deal in Vermont?

Generally yes, with legal review. A Burlington owner can carry a note and you can assign that contract, but 26 V.S.A. 2212 bars unlicensed brokerage and no wholesaler-specific statute was found. Have a Vermont attorney draft the note and mortgage. Disclose in writing that you may assign the deal.

Think of the owner as the lender. Your buyer signs a note and a mortgage in the owner’s favor and sends a payment every month. The purchase contract fixes the price, the cash at closing, the interest and the length, and an assignee takes over exactly that package. Start with our seller financing guide and contract guide.

Vermont rules touch both the fee and the note. 26 V.S.A. 2211(a)(4) lists dealing in options and selling any interest in real estate as brokerage when done for another for pay, with an owner exemption for a bona fide owner only. If financing is offered to others, state lending rules at the Department of Financial Regulation may matter; check current text. See installment sales.

Seller-Financed Deals in Vermont at a glance

Wholesaler law	No statute written for wholesalers surfaced in research
Documents	A note and a mortgage running to the seller
Brokerage	Acting as a broker without a license is barred (26 V.S.A. 2212)
Deed tax	Property transfer tax under 32 V.S.A. 9602
If payments stop	Court foreclosure is the usual route
Lending rules	Check current state and federal text

The opportunity

Why seller financing fits Burlington

Chittenden County homes are expensive, and a bank may balk at a mixed-use building or a rundown triplex. Many longtime owners have no mortgage and would rather collect a check each month than park a lump sum in the market. A note secured by a building they know can feel safer than stocks. Around the Old North End and the South End, a decent deposit and plain terms can bring in a seller who would never list. Treat prices here as illustrations and check them locally.

Retired owners

People without a mortgage may like a monthly check. Our negotiation guide helps with the talk.

Locked-out buyers

Freelancers and small investors often accept a higher price for terms a bank would refuse.

Spread-out gain

Payments over several years can soften a seller’s tax year, with advice from a tax pro.

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Lead sources

Where to find seller-financed leads in Burlington

Free-and-clear owners. Town land records show homes with no mortgage. Use our owner lookup guide.
Long-time landlords. They may want note income instead of tenants. Start with absentee owner leads.
Estate sellers. Heirs who do not want to manage a building may accept payments over time.
FSBO listings. Owners selling alone may entertain terms. Read about off-market properties.
Referrals. Attorneys and accountants hear who wants income. Ask about motivated sellers.

Your exit

Who buys seller-financed deals in Vermont

Your end buyer is usually a small landlord or a self-employed family that a lender turned away. To them the monthly figure and the end date count as much as the sticker price. If a lump sum falls due later, our balloon payment guide shows how that works.

Hire an outside company to collect and record each payment. The seller gets steady statements, and the buyer gets a record that helps at a refinance. When the buyer will live there, a lawyer should say which lending rules apply. Our note investing guide covers resale of paper.

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Step by step

How to start wholesaling seller-financed deals in Vermont

Hear what the owner needs. Find out the monthly income target and how soon they want to move.
Sketch the package. Draft a price, deposit, rate, length and any final lump sum.
Get a legal read. A Vermont attorney should look at licensing, lending and the note itself.
Test the math. Compare against the ARV calculator and the MAO calculator before you sign.
Sign with a disclosure. The contract should say plainly that you may hand it to another buyer.
Order the paper. Counsel prepares the note and the mortgage.
Close and set up payments. Use an investor-friendly title company, then start servicing.

Your checklist for wholesaling Seller-Financed Deals in Vermont

Write the rate, term and any lump sum into the contract itself.
Ask a Vermont attorney about licensing and lending rules.
Price in the deed tax from 32 V.S.A. 9602.
Line up a servicing company before the closing date.
Tell the owner in writing that the deal may be assigned.

A Vermont example: a Burlington owner who wanted income

Agreed sale	$455,000
Cash at closing	$55,000
Amount carried	$400,000 at 6.5%, 30-year schedule
Lump sum due	End of year seven
Your fee	$16,000
Owner receives	About $2,530 each month

A retired Burlington owner held a paid-off duplex near the Hill Section. Selling for cash would push a big gain into one tax year, and she preferred a regular check.

In this worked example, you signed at $455,000. The buyer would pay $55,000 at closing, and she would carry $400,000 at 6.5% with the balance due after seven years. Counsel drew up the note and mortgage, and the contract said you might assign it.

A local landlord paid you $16,000 and took the contract on those terms. A servicing company now remits roughly $2,530 monthly to the seller. These figures are an illustration only.

Vermont rules to know

Licensing, foreclosure and lending in Vermont

Research turned up nothing written for wholesalers. The license requirement sits in 26 V.S.A. 2212, penalties pass through section 2213, and under 2252(c)(1) the Commission may hand suspected unlicensed practice to the Attorney General or a State’s Attorney. Nobody has answered whether a fee for assigning a seller-finance contract is brokerage, so check current text.

When a buyer defaults, the owner enforces the mortgage through 12 V.S.A. chapter 172. Power-of-sale foreclosure excludes a dwelling house owned by a natural person, which points toward a court case where redemption time turns on the facts. See our redemption guide and attorney guide.

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Stress-test your terms

These deals turn on small wording choices. Share your draft term sheet with us and we will talk through what could go wrong.

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FAQ

Seller-Financed Deals in Vermont: common questions

Is wholesaling seller-financed deals in Vermont legal?

Nothing written for wholesalers turned up in Vermont research. Owner financing is a familiar structure, yet the broker chapter, 26 V.S.A. chapter 41, and lending rules can still reach a deal. Check current text, and let a Vermont attorney prepare the contract, note and mortgage.

Does the seller need a lawyer?

It is strongly wise. A Vermont attorney drafts the note and mortgage, checks how the deed transfer is taxed and explains default. That protects both sides, and it keeps your assignment from turning into a dispute after closing. Treat the lawyer’s fee as a normal cost of the deal.

What happens if the buyer stops paying?

The seller can pursue foreclosure under 12 V.S.A. chapter 172. For a dwelling house owned by a natural person, non-judicial sale is not available, so court action is the usual route. Redemption periods depend on the facts, so ask an attorney.

Does Vermont transfer tax apply to these deals?

A deed transferring Vermont property is generally subject to tax under 32 V.S.A. 9602. The base rate is 1.25%, a principal residence pays less on the first $200,000, and certain non-principal-residence homes face 3.4%. Confirm the rate with the Department of Taxes.

Should I use a loan servicer?

Yes. A servicer collects each payment, mails statements and keeps one clean record. That record helps if the buyer refinances or the owner must enforce the note, and it keeps you away from handling money you should not hold. Ask the title company who can recommend one.