Vermont situation guide · Updated November 2026

Wholesaling Tax Delinquent Properties in Vermont

Wholesaling tax delinquent properties in Vermont means putting an owner who owes back property taxes under contract, then assigning that contract to a buyer who clears the debt at closing. In Burlington and other towns, a tax collector can move toward a public auction, which gives owners a deadline and makes a quick, private sale attractive.

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The short answer

Can you wholesale a tax delinquent property in Vermont?

Usually. A Vermont owner who owes delinquent property taxes can sign a purchase contract with you, and you may then pass that contract to a buyer, provided you are upfront about your role and the activity stays clear of unlicensed brokerage. No wholesaler-specific Vermont statute was found, so check current text and ask an attorney. The back taxes are paid out of the sale proceeds at closing, so the closing agent needs a current payoff figure from the town.

Vermont towns collect property tax, and a delinquent collector can pursue unpaid bills. Under 32 V.S.A. 5252, the collector may extend a warrant on land when the taxpayer owes at least $1,500 and has been delinquent for more than one year, but only after offering a written, reasonable repayment plan. The warrant is recorded with the town clerk, the sale is advertised for three weeks, and certified mail goes out at least 30 days ahead. See also tax lien vs tax deed.

A sale is not always the end of the story. Under 32 V.S.A. 5260, the owner, a lienholder or a mortgagee, or their representatives and assigns, may redeem within one year from the day of sale by paying the sale price plus interest at 1% per month or fraction of a month. The collector must send a written notice 90 to 120 days before that period closes. Our redemption period guide covers the idea.

Tax Delinquent Properties in Vermont at a glance

Main statute	32 V.S.A. chapter 133 (check current text)
Warrant threshold	$1,500 owed and more than one year delinquent
Before any sale	A written repayment plan must be offered
Sale notice	Three weeks of ads and certified mail 30+ days out
Redemption	One year from the sale at 1% per month
Investor end-buyer	3.4% transfer tax if not a principal residence

The opportunity

Why Burlington owners fall behind on taxes

Burlington is Vermont’s largest city, and Chittenden County prices run high compared with the rest of the state. Pull recent comps with our comps guide before you talk numbers.

Thin-margin landlords

A vacancy or big repair can push a small owner behind. See our absentee owner guide for outreach ideas.

Heirs who inherited a bill

Relatives may stop paying while they sort out an estate. See heirs’ property.

Owners who lost income

A layoff or illness can drain the tax budget.

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Lead sources

Where to find delinquent tax leads near Burlington

Delinquent tax lists. Ask the city or town for its delinquent list, then build your own with our tax delinquent list guide.
Town clerk records. Vermont keeps land records at the town or city clerk, not a county office.
Sale notices. Ads run in a local paper for three weeks.
Owner lookup. Pair the list with a skip tracing pass to reach absent owners.
Mail. Short letters work. See direct mail.

Your exit

Who buys tax delinquent deals in Vermont

Cash investors and small landlords are the usual buyers, since the town is paid before the deed moves. Build that list with our cash buyer guide.

Show your buyer the full cost. Under 32 V.S.A. 9602, residential property that will not be a principal residence can be taxed at 3.4% of value, while an owner-occupant pays less. Our transfer tax guide covers how to model it.

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Step by step

How to start wholesaling tax delinquent properties in Vermont

Pull the list. Collect names and amounts owed from the municipality.
Check the stage. Find out whether a warrant has been recorded or an auction date set.
Talk to the owner. Ask about the mortgage, the repairs and the timeline. Use our negotiation guide.
Run the numbers. Use the ARV calculator and the MAO calculator.
Sign and disclose. Put your assignment rights in writing and tell the owner you may assign.
Get a payoff. Get a written payoff good through closing.
Close with a title company. Use an investor-friendly title company.

Your checklist for wholesaling Tax Delinquent Properties in Vermont

Get a written tax payoff with the closing date.
Confirm no auction is scheduled before closing.
Check for other liens.
Give the flood disclosure form to your buyer if you sell the contract.
Talk to a Vermont attorney about your assignment.

A Vermont example: a Burlington duplex with back taxes

Contract price	$318,000
Mortgage payoff	$196,000
Back taxes and charges	$9,400
Estimated repairs	$55,000
Assignment fee	$14,000
Owner’s cash before costs	About $112,600

Consider this worked example, with invented numbers. A Burlington duplex owner near the Old North End fell twenty months behind on taxes after a vacancy and could not keep up with a repayment plan.

You agreed on $318,000, using an after-repair value of $560,000 and $55,000 in repairs. The MAO calculator gave a buyer ceiling near $337,000.

A landlord paid you a $14,000 assignment fee and closed through title. The closing agent paid the mortgage and the town first, and the owner left with about $112,600 before other costs.

Vermont rules to know

Tax sale law, licensing and disclosure in Vermont

No Vermont statute aimed at wholesalers was found: no wholesaler registration, assignment-fee cap or special cancellation right. Broker law still matters. 26 V.S.A. 2212 bars acting as a broker without a license, and 2211(a)(4) lists buying, selling and dealing in options or any interest in land for another for compensation. Whether assigning your own contract fits is unsettled, so see our license guide, check current text and ask the Office of Professional Regulation or an attorney.

Disclosure runs both ways. Tell the owner in writing that you are buying to resell. Flood facts also matter: 27 V.S.A. 380 puts a flood disclosure duty on sellers, so confirm current text. Rely on the collector’s written payoff. Our attorney guide explains what to ask.

Learn it with a mentor

Turn tax deadlines into deals

Tax cases move on a calendar, and the details decide who gets paid. Mentorship students bring us their owner conversations and we help them structure each deal.

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FAQ

Tax Delinquent Properties in Vermont: common questions

Is wholesaling tax delinquent properties in Vermont legal?

It is generally allowed. Searches turned up no Vermont ban on wholesaling as such, though the broker statute, 26 V.S.A. chapter 41, can reach paid deal-making for others. Disclose your role to the owner, keep out of agent-like behavior, and have an attorney check current text before relying on this.

How long does a Vermont owner have to redeem after a tax sale?

Under 32 V.S.A. 5260, the owner, a lienholder or a mortgagee may redeem within one year from the day of sale by paying the sale price plus interest at 1% per month or fraction of a month. The collector sends a notice 90 to 120 days before the period ends. Confirm current text.

How much must be owed before a Vermont tax sale?

Under 32 V.S.A. 5252 a collector may extend a warrant when the taxpayer owes at least $1,500 and has been delinquent for more than one year, after a written repayment plan was offered. Towns can handle collection differently, so ask the collector for the exact balance and timeline. Check current text.

Where are Burlington land records kept?

Vermont records land transactions with the town or city clerk rather than a county recorder. For Burlington, search the city clerk’s land records, then confirm ownership and liens with a title company before you sign anything with the owner. Ask the clerk’s office what it can show you before you order a title search.

Who pays the transfer tax on an investor sale?

Under 32 V.S.A. 9602, residential property that will not be a principal residence can be taxed at 3.4% of value, versus lower rates for a buyer’s principal residence. Who bears the cost depends on the contract and practice, so ask the Department of Taxes and your closing agent.