A few days ago, a homebuyer on Reddit shared a story that sent chills through the real estate community: they were days away from closing on a house — only to discover the entire two-acre lot was designated Class 2 wetlands. The house was literally built on protected wetlands, and if the state enforced the law, the structure would need to be demolished, the land restored, and the owner would be stuck with massive fines.
They got lucky. A murky title issue caused them to back out before closing. But most buyers wouldn’t be so fortunate.
The Reddit post has generated hundreds of comments and one question keeps coming up: whose job is it to catch this? The buyer’s? The agent’s? The lawyer’s? The lender’s?
The answer is uncomfortable — and every homebuyer needs to hear it.
Here’s the short version: A buyer in Vermont found a home in a competitive market with multiple offers. The sellers disclosed that the property had a “high water table” but said they’d never experienced flooding. The home had a sump pump and perimeter drain, and it wasn’t in a FEMA flood zone. So far, so good — right?
Under pressure from the competitive market, the buyer waived their own inspection and relied on the sellers’ inspection report from two years prior, which showed no issues.
After backing out over a separate title problem, the buyer did more digging and discovered the entire lot was designated Class 2 wetlands under Vermont law. Vermont requires a 50-foot buffer zone around protected wetlands — meaning no construction should have been within 50 feet of the boundary, let alone on top of it.
The scariest part? The home had already been sold three times since it was built — always during winter when heavy snow covered the telltale signs of wetland conditions. And it had just gone under contract again with a new buyer.
Protected wetlands aren’t just a paperwork inconvenience. They carry real legal and financial consequences that can destroy a homeowner’s investment:
The Clean Water Act Section 404 makes it illegal to discharge dredged or fill material into waters of the United States — including wetlands — without a permit from the U.S. Army Corps of Engineers. Violations can result in:
The EPA’s enforcement goals are explicit: restore illegally filled wetlands and deter future violations. They don’t care if you’re the person who built on the wetland or the person who bought it 20 years later.
Many states have their own wetland protections that go further than federal law. Vermont, New Hampshire, Massachusetts, New York, New Jersey, and several other states have aggressive wetland regulations with their own penalty structures.
In Vermont specifically, the state can require:
Even if enforcement never comes, a wetland designation can:
A knowledgeable local agent will flag environmental red flags before you're in too deep. Connect with vetted agents who know your area.
This is the question that sparked the biggest debate in the Reddit thread. Let’s break it down honestly:
In most states, sellers are required to disclose known material defects. If the seller knows the property is on protected wetlands, they must disclose it. But here’s the catch — many sellers genuinely don’t know. The Vermont seller disclosed a “high water table” but may not have understood the wetland classification or its implications.
A good buyer’s agent should be familiar with common environmental concerns in their market. An experienced agent in Vermont should know to check the state’s wetland maps — it’s basic local knowledge. But agents aren’t environmental lawyers. They should flag potential issues and recommend further investigation, not certify that a property is wetland-free.
A real estate attorney reviews the title and legal aspects of the transaction. A thorough attorney might catch permit irregularities or zoning violations, but a standard title search doesn’t automatically include environmental checks.
Lenders require appraisals and sometimes environmental assessments, especially for properties in flood zones. But a property can be on wetlands without being in a FEMA flood zone — exactly what happened in this case.
The hard truth is that no single professional in a real estate transaction is specifically tasked with environmental due diligence for residential purchases. In commercial real estate, Phase I Environmental Site Assessments are standard. In residential real estate? They’re almost never done.
As the buyer, the responsibility for due diligence ultimately falls on you. But you shouldn’t have to do it alone — and this is exactly why choosing the right agent matters.
The good news: checking for wetlands is straightforward and often free. Here’s your checklist:
The U.S. Fish and Wildlife Service maintains the National Wetlands Inventory, a free online mapping tool. Enter any address and see if wetlands are mapped on or near the property.
Important caveat: The NWI is a planning tool based on aerial imagery and soil data. It doesn’t capture all wetlands, and it’s not legally definitive. But if wetlands show up on the NWI map, you need to investigate further.
Many states maintain their own wetland inventories that are more detailed than the NWI. Vermont, for example, has a Wetland Screening Tool that overlays wetland inventory maps, hydric soils, wetland permits, and natural community information.
While flood zones and wetlands aren’t the same thing, there’s significant overlap. Check FEMA’s flood map tool for your property. Even if the property isn’t in a designated flood zone, proximity to flood zones can indicate wetland conditions.
The USDA’s Web Soil Survey shows soil types for any property. Hydric soils — soils that are saturated, flooded, or ponded long enough to develop anaerobic conditions — are a primary indicator of wetlands.
Visit the local planning office or check online records to verify that the home was properly permitted. If a home was built on or near wetlands, there should be a wetlands permit on file. No permit? That’s a major red flag.
For properties with any indication of wetland conditions — high water tables, proximity to streams or ponds, lush vegetation, standing water after rain — consider hiring a licensed environmental consultant to perform a wetland delineation. This typically costs $2,000–$5,000 and gives you a definitive answer.
Compare that to the cost of buying a house that might need to be demolished.
The best local agents know every quirk about their market — including environmental hazards most buyers miss.
Looking back, the Reddit buyer identified several warning signs they’d missed. Here’s what to watch for:
If you suspect your property may be on or encroach upon protected wetlands:
The Reddit buyer summed it up perfectly: “I’m considering this a huge learning experience.”
Environmental due diligence isn’t just for commercial property developers. Every homebuyer should spend 15 minutes checking wetland maps, flood maps, and soil surveys before making an offer. It’s free, it’s easy, and it could save you from the most expensive mistake of your life.
But more importantly, work with a real estate agent who knows the local landscape — literally. An experienced local agent would have known that this Vermont subdivision had wetland concerns. They would have flagged it before you ever toured the property.
Don’t leave the biggest purchase of your life to chance.
Connect with top-rated local real estate agents who know your market inside and out — including the environmental risks most buyers never think about.
Richard Kastl has been a real estate investor since 2018 and is an entrepreneur with expertise as a web developer, digital marketer, copywriter, conversion optimizer, AI enthusiast, and overall talent stacker. He combines his technical skills with real estate knowledge to provide valuable insights and help people make informed decisions in their property journey.
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