Is wholesaling legal in Vermont?
Quick answer
Yes, wholesaling is legal in Vermont when you assign your own contract as a principal, because no law targets the practice. Vermont regulates real estate brokers and salespersons through 26 V.S.A. Chapter 41, administered by the Office of Professional Regulation. That chapter prohibits acting as a broker or salesperson for others without a license, but a buyer who assigns their own purchase contract is generally outside its reach. No wholesaling bill was found in the 2025 or 2026 sessions. A 2026 proposal, H.607, would impose a 90-day waiting period on institutional investor purchases of one- and two-family homes; it was referred to committee and is not a wholesaling bill. For Vermont wholesalers, the bigger practical issue is tax: the property transfer tax is a percentage of value with different rates by property use, so a double close can be noticeably more expensive than an assignment.
Vermont at a glance
- Status
- General license law
- License required to wholesale?
- Not for wholesaling as such; general license law applies
- Seller cancellation / disclosure rights?
- No wholesaling-specific right found
- Key law
- 26 V.S.A. Ch. 41
- Regulator
- Vermont Office of Professional Regulation (Secretary of State), Real Estate Commission
- Transfer tax
- Since August 1, 2024, Vermont's property transfer tax is 0.5% on the first $200,000 of a principal-residence purchase and 1.25% plus a 0.22% Clean Water Surcharge (1.47%) above that, with a higher 3.4% rate (3.62% with surcharge) for certain non-principal residences; confirm which rate category and party applies with the Department of Taxes.
- Last reviewed
- Nov 6, 2026
What Vermont requires from wholesalers
- Assign only your own contract interest as a principal
- Do not market the property as if you own it or negotiate for the seller
- Disclose your equitable interest in writing to the seller and assignee (best practice)
How to wholesale legally in Vermont: step by step
- 1
Contract to buy as a principal, in your own name or entity, with an assignment clause. Vermont's license law reaches people acting for others, so your position depends on holding the buyer's side yourself.
- 2
Tell the seller in writing that you hold an equitable interest and may assign it. Vermont does not require this, but a clear written disclosure is a best practice and limits misrepresentation claims in a small market.
- 3
Advertise only the contract interest. Avoid wording or photos that present the property as your listing, never negotiate on the seller's behalf with buyers, and keep any communications that show you acted for yourself.
- 4
Price your deal with the transfer tax in mind. Ask a closing professional which rate applies on each leg, because a wholesaler's own purchase may not qualify for the principal-residence rate.
- 5
Document the assignment carefully, including the end buyer's signed acknowledgment that you are transferring contract rights and not title, and deliver the full package to whoever is handling the closing well before the scheduled date.
- 6
If you plan to represent other buyers or sellers, earn a license. Vermont requires a 40-hour course, a national exam and a state exam through the Office of Professional Regulation.
Seller protections and penalties in Vermont
Penalties: Unlicensed practice is enforced by the Vermont Office of Professional Regulation.
Assignment vs. double close in Vermont
In Vermont, the transfer tax often decides the exit. An assignment produces one conveyance from the original seller to your end buyer, so the property transfer tax is calculated once, at whatever rate applies to that buyer's use of the property. If the end buyer will live in the home, the 0.5% rate on the first $200,000 may apply. A double close creates two taxable transfers. On the first leg you are the purchaser, and an investor buying for resale is unlikely to qualify for the principal-residence rate, so that leg may be taxed at the general rate or the higher rate for certain non-principal residences. The second leg is then taxed again for your end buyer. Before choosing a double close, have the closing professional run both scenarios. An assignment keeps you firmly in the principal's role under 26 V.S.A. Chapter 41 and usually costs less, but it reveals your fee to both parties.
Transfer tax: Since August 1, 2024, Vermont's property transfer tax is 0.5% on the first $200,000 of a principal-residence purchase and 1.25% plus a 0.22% Clean Water Surcharge (1.47%) above that, with a higher 3.4% rate (3.62% with surcharge) for certain non-principal residences; confirm which rate category and party applies with the Department of Taxes.
Compare your net both ways with the double close calculator. If you double close, transactional funding can cover the A-to-B purchase.
Compliance mistakes to avoid in Vermont
- Underestimating transfer tax on a double close, where the first leg may be taxed at 1.47% or more because the wholesaler is not buying a principal residence.
- Using outdated tax figures; the principal-residence threshold and Clean Water Surcharge changed on August 1, 2024.
- Holding yourself out as representing the seller, or negotiating price on their behalf, which is licensed activity under 26 V.S.A. Chapter 41.
- Confusing investor-purchase proposals like H.607 with wholesaling law; track them, but they do not govern contract assignments.
Real estate licensing in Vermont
Real estate licensing in Vermont is overseen by Vermont Office of Professional Regulation (Secretary of State), Real Estate Commission.
Salesperson applicants complete a 40-hour Commission-approved pre-licensing course, pass the national exam (administered by PSI) and the Vermont state exam, and apply online through the Office of Professional Regulation. Licensing requirements
Running the numbers on a Vermont deal
Compliance is half the job; pricing is the other half. Use the wholesale MAO calculator to work backward from your end buyer's costs, estimate value with the ARV calculator, budget repairs with the rehab cost estimator, and sanity-check with the 70% rule. New to the math? Start with how to calculate MAO.
Most Vermont end buyers use a lender. Jaken Finance Group funds fix-and-flips up to 100% of total cost on qualified deals, typically in 7–10 business days on a complete file — see Vermont investor loans or our end-buyer financing guide.
Vermont wholesaling FAQ
Is wholesaling legal in Vermont?
Yes. Vermont has no wholesaling-specific statute or rule. The real estate license law, 26 V.S.A. Chapter 41, prohibits acting as a broker or salesperson for others without a license, but assigning your own purchase contract as a principal is generally not covered. Marketing a property for a seller, or negotiating for them, is.
Do you need a license to wholesale in Vermont?
Not if you only buy and assign your own contracts. You need a license from the Office of Professional Regulation if you act as a broker or salesperson for other people, such as marketing their property or negotiating for them in exchange for compensation. Unlicensed practice is enforced by OPR.
How much is the Vermont property transfer tax?
Since August 1, 2024, a principal-residence purchase is taxed at 0.5% on the first $200,000 of value and 1.25% plus a 0.22% Clean Water Surcharge above that. Certain non-principal residences face a 3.4% rate, or 3.62% with the surcharge. Confirm the applicable category and payer with the Department of Taxes.
Is a double close expensive in Vermont?
It can be. Each deed is a taxable transfer, so a double close triggers Vermont's percentage-based transfer tax twice. The wholesaler's own purchase is unlikely to qualify for the principal-residence rate, so that first leg may be taxed at a higher rate than the end buyer's purchase.
Is Vermont considering a wholesaling law?
No wholesaling bill was found for 2025 or 2026. A 2026 bill, H.607, would impose a 90-day wait on institutional investor purchases of one- and two-family homes and was referred to committee. It addresses investor buying, not contract assignments, but it is worth watching if you sell to institutional buyers.
How do you get a real estate license in Vermont?
Complete a 40-hour Commission-approved pre-licensing course, pass the national exam administered by PSI and the Vermont state exam, and apply online through the Office of Professional Regulation. Sources differ on exam scoring details and post-licensing timing, so check the OPR FAQ page before you enroll.
Does Vermont require wholesalers to disclose their interest?
No Vermont statute requires a wholesaling disclosure. Giving the seller and the assignee a written statement that you hold an equitable interest, not title, is still a recommended practice. It helps show you acted as a principal under 26 V.S.A. Chapter 41 and gives both parties a clear record of the arrangement.
Statutes, rules and sources
26 V.S.A. Ch. 41
Real Estate Brokers and Salespersons
- Vermont Statutes 26 V.S.A. Ch. 41
- Wholesaling 50-state tracker (squatters.io)
- Vermont OPR - Salesperson and Broker FAQs
- Vermont Department of Taxes - Property Transfer Tax
Last reviewed Nov 6, 2026. This page summarizes public sources for general information and isn't legal advice. Local rules may also apply — confirm with a licensed Vermont real estate attorney before you contract.