Patricia is selling a lakefront cottage in Vermont that she inherited from her parents two years ago. She has never lived in the property and has limited personal knowledge of its condition. She tells her listing agent that she cannot complete the seller disclosure form accurately because she simply does not know whether there are any defects. Which of the following statements correctly describes Patricia's obligations and potential liability under Vermont law?

Correct Answer

A) Patricia must complete the disclosure form to the best of her knowledge, disclosing what she knows and indicating where she lacks knowledge, and she remains liable only for defects she actually knew about

Under 27 V.S.A. § 1154, Vermont's seller disclosure obligation is based on the seller's actual knowledge. A seller who has limited knowledge of the property—such as an heir who never occupied it—must complete the disclosure form to the best of their knowledge, indicating where information is unknown. Vermont law does not impose strict liability for unknown defects; rather, sellers are liable for defects they knew about and failed to disclose. Patricia should disclose what she knows, note what she does not know, and is not liable for defects she was genuinely unaware of.