A Vermont buyer is under contract to purchase a rural property with a private well and an existing septic system. The purchase agreement includes a contingency for a satisfactory septic inspection but does not include a contingency for a Vermont Wastewater System and Potable Water Supply Permit. The buyer's agent later discovers that the seller had installed a new leach field two years ago without obtaining the required state permit. Which statement best describes the legal risk to the buyer if this issue is not resolved before closing?
Correct Answer
B) The buyer may be required to obtain the permit retroactively after closing and could face enforcement action or be required to bring the system into compliance at the buyer's expense
Under Vermont's Wastewater System and Potable Water Supply Rules (Environmental Protection Rules, Chapter 1), a permit is required before constructing or replacing a wastewater system. An unpermitted leach field replacement is a violation that runs with the property. If the buyer closes without resolving this issue, the buyer — as the new property owner — may face enforcement action from the Vermont Agency of Natural Resources, be required to obtain a retroactive permit, or be compelled to bring the system into compliance at the buyer's own expense. The absence of a permit contingency in the purchase agreement means the buyer has no contractual remedy against the seller after closing.
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Related Topics & Key Terms
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Related Concepts
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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