An Act To Amend the Real Estate Brokerage Laws
Maine Legislature, Session 122, LD 1525
Committee: Business, Research and Economic Development
Sponsors: SMITH, DOW, AUSTIN, RECTOR, BROMLEY
Amends: 32 MRSA §13171, 32 MRSA §13177, 32 MRSA §13178, 32 MRSA §13184, 32 MRSA §13271, 32 MRSA §13275, 32 MRSA §13277, 32 MRSA §13278, 32 MRSA §13279, 32 MRSA §13281

Legislative Document 
No. 1525 
H.P.1072 
House of Representati ves, March 31, 2005 
An Act To Amend the Real Estate Brokerage Laws 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
1f/~1J1·m~~ 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative SMITH of Monmouth. (GOVERNOR'S BILL) 
Cosponsored by Senator DOW of Lincoln and 
Representatives: AUSTIN of Gray, RECTOR of Thomaston, Senator: BROMLEY of 
Cumberland. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 32 MRSA §13171, as enacted by PL 1987, c. 395, Pte A, 
§212, is amended to read: 
§13171. Real estate brokerage agency 
!!Real As 
used in this chapter, except for subchapter 7, 
"real estate brokerage agency" or "agency" means any person or 
entity engaged in real estate brokerage services through its 
designated broker, associates or employees and licensed by the 
commission as a real estate brokerage agency. 
Sec. 2. 32 MRSA §13177, as amended by PL 1999, c. 129, §8 and 
affected by §16, is repealed. 
Sec.3. 32 MRSA §13177·A is enacted to read: 
§13177-A. 
Brokerage agreements 
1. 
Definitions. 
As 
used 
in 
this 
section, 
"brokerage 
agreement." "real estate brokerage agency" and "client" have the 
same meanings as in section 13271. 
2. 
Written agreements. 
A brokerage agreement between a 
real estate brokerage agency and a client must be in writing and, 
at a minimum, include the following: 
A. 
The signature of the client to be charged: 
B. 
The terms and conditions of the brokerage services to be 
provided: 
C. 
The method or amount of compensation to be paid: and 
D. 
The date upon which the agreement will expire. 
A brokerage agreement may not be enforced against any client who 
in good faith subseQuently engages the services of another real 
estate brokerage agency following the expiration date of the 
first brokerage agreement. 
Any brokerage 
agreement provision 
extending 
a 
real estate brokerage 
agency's 
right 
to 
a 
fee 
following expiration of the brokerage agreement may not extend 
that right beyond 6 months. 
Sec. 4. 32 MRSA §13178, as enacted by PL 1987, c. 395, Pte A, 
§212, is amended to read: 
§13178. Trust accounts 
,. 
• 
Every 
agency 
shall 
maintain 
a 
~FQS~ federally 
insured 
account or accounts in a 
eaB*iB~--~&~~~~~~~-~~~-J£--~ae 
financial institution authorized to do business in this State~ 
defined in Title 9-8. section 131, subsection l7-A. or a credit 
union authorized to do business in this State. as defined in 
Title 9-8. section 131. subsection l2-A. for the sole purpose of 
depositing all earnest money deposits and all other money held by 
it as an agency in which its clients or other persons with whom 
it is dealing have an interest. The trust account and withdrawal 
orders, including all checks drawn on the account, saall ~ 
name the subject agency and be identified as a real estate trust 
account. 
Real estate trust accounts saall ~ 
be free 
from 
trustee process, except by those persons for whom the brokerage 
agency has made the deposits and then only to the extent of the 
interest. The designated broker, except for an amount necessary 
to maintain the accounts not to exceed an amount prescribed by 
commission rule, shall withdraw from the accounts all fees due 
wi thin 30 days afterT but not until consummation or termination 
of the transaction when the designated broker makes or causes to 
be made a full accounting to ais the broker's principal. The 
designated broker 
shall 
maintainT--a~--~ae--a~eBey~s--plaee--e£ 
eQsiBes6T-~r~~-~£~--e~aeF-~1r-£e€e£e6--~-~~~~-~ae 
aae~Qaey--aaG-~r~~-~-~--~he--aeeeQB~S trust accounts 
and 
supporting records in a manner prescribed by commission rule. 
These 
accounts 
and 
records 
saall ~ 
be 
epeBea ~ 
for 
inspection by 
the director or ais the director's authorized 
representative at the agency's place of business during generally 
recognized business 
hours. 
Upon 
order 
of 
the 
director, 
the 
designated broker shall authorize the director in writing to 
confirm the balance of funds held in all agency trust accounts. 
Rules 
adopted pursuant to this section are routine technical 
rules as defined in Title 5. chapter 375. subchapter 2-A. 
Sec. 5. 32 MRSA §13184 is enacted to read: 
§l3l84. 
Real estate brokerage records; retention 
A designated broker shall maintain complete and adeguate 
records of all real estate brokerage activity conducted on behalf 
of the broker's agency. 
The commission shall specify by rule the 
records 
reguired to establish complete 
and 
adeguate 
records. 
including retention schedules. 
The 
records must be open for 
inspection 
by 
the 
director 
or 
the 
director's 
authorized 
representative at the agency's place of business during generally 
recognized business hours. 
Sec. 6. 32 MRSA c. 114, sub-c. 7, as amended, is further amended 
by repealing the subchapter headnote and enacting the following 
in its place: 
SUBCHAPTER 7 
REAL ESTATE BROKERAGE RELATIONSHIPS 
Sec. 7. 32 MRSA §13271, as amended by PL 1999, c. 129, §15 
and affected by §16, is further amended to read: 
§13271. Definitions 
As 
used in this subchapter, unless the context otherwise 
indicates, the following terms have the following meanings. 
1. 
Affiliated licensee. 
"Affiliated licensee" 
means 
a 
licensee who is authorized to engage in brokerage activity by and 
on behalf of a real estate brokerage agency. 
2. 
Appointed 
agent. 
"Appointed 
agent" 
means 
that 
affiliated licensee who is appointed by the designated broker of 
the affiliated licensee's real estate brokerage agency to act 
solely for a client of that real estate brokerage agency to the 
exclusion of other affiliated licensees of that real estate 
brokerage agency. 
3. 
Brokerage 
agreement. 
"Brokerage 
agreement" 
means 
a 
contract that establishes the relationships between the parties 
as-~e-~ha~ and the brokerage services to be performed. 
4. 
Buyer 
agent. 
"Buyer 
agent" 
means 
a 
real 
estate 
brokerage agency that 
is-~-By--and--Fe:@FeseB~s has entered 
into a written brokerage agreement with the buyer in a 
real 
estate transaction to represent the buyer as its client. 
5. 
Client. 
"Client" means a person who has entered into a 
written 
brokerage 
agreement 
eFea~iB~---a---s:@eeia±---a~eBey 
Fe*a~~eBsh~:@ with a real estate brokerage agency that has agreed 
to represent that person and be bound by the duties set forth in 
section 13272 on behalf of that person. 
6. 
Designated broker. 
"Designated broker" means a ±ieeBsee 
broker designated by a real estate brokerage agency to act for ie 
the real estate brokerage agency in the conduct of real estate 
brokerage. 
7. 
Disclosed dual agent. 
"Disclosed dual agent" means a 
real estate brokerage agency representing 2 or more clients whose 
interests are adverse in the same transaction with the knowledge 
and informed consent of the clients. 
• 
• 
• 
.. 
8. 
Material fact. 
"Material 
fact" 
means 
a 
fact 
that 
relates to the transaction and is so substantial and important as 
to influence the pa~~ies client to whom it is imparted. 
9. 
Ministerial acts. 
"Ministerial acts" means those acts 
that a real estate brokerage agency 
e~--i-t.-s-~:€-:€-i-l-ia-t.-ed--;!:ieeBsees 
pe~~e~~ performs for a person who is not a client and that ae-Be~ 
~eEfQi~e--4i~-e-t.-i~-<rF--~he-~-&l'«-&e--<r:€--~he--b-r-E>k-&l'~~'-s--e~ 
i~s-a~~i;!:ia~ea-~ieeBsees~-jQa~eB~ are informative or clerical in 
nature and do not rise to the level of active representation on 
behalf of the person. 
10. 
Real estate brokerage agency. 
"Real estate brokerage 
agency" means a person or entity providing real estate brokerage 
services 
through that person's 
designated broker, 
affiliated 
licensees, associates or employees and licensed by the commission 
as a real estate brokerage agency. 
11. 
Seller agent. 
"Seller agent" 
means 
a 
real estate 
brokerage agency that 
is-~-sy--and--Fep~eseB~s has entered 
into a written brokerage agreement with the seller in a real 
estate transaction to represent the seller as the real estate 
brokerage agency's client. 
12. 
Subagent. 
"Subagent" means 
a 
real estate brokerage 
agency engaged by another real estate brokerage agency to perform 
brokerage tasks for a client. 
13T--TBi£d-pa£~YT--~~hi£a-pa£~y~-~~~~~-i-&-Be~-a 
e;!:ieB~--aBa--ha~--~-~-~~1at-~~-~-<r--~~--Feal--es~a~e 
s~e*e~a~e-a~eBeyT 
13-A. 
Transaction broker. 
"Transaction broker" 
means 
a 
real estate brokerage agency that provides real estate brokerage 
services to one or more parties in a real estate transaction 
without 
a 
fiduciary relationship as 
a 
buyer agent, 
a seller 
agent, a subagent or a disclosed dual agent. 
14. 
Undisclosed dual agent. 
"Undisclosed dual agent" means 
a real estate brokerage agency representing 2 or more clients 
whose interests are adverse in the same transaction without the 
knowledge and informed consent of the clients. 
Sec. 8. 32 MRS A §§ 13272 to 13274, as enac ted by PL 1993, c. 
679, §l, are amended to read: 
§13272. Scope of agency 
A 
real 
estate 
brokerage 
agency 
that 
provides 
services 
through a brokerage agreement for a client is bound by the duties 
of loyalty, 
obedience, 
disclosure, 
confidentiality, 
reasonable 
care, diligence and accounting as set forth in this chapter. 
Such aR a real estate brokerage agency may be a seller agent, a 
buyer agent 
9~~ subagent or a disclosed dual agent. 
l£--a 
eiffe~eRt-~~~~~~-9&&we&&-~~-~~-e6~a~e-~~~-a~eRey 
aRe-the-pe~6e~-~~-~~~~~~~~~-&~~~~-~e&ey-~e~fe~ms 
the-~~~-i6--~&&&&GeQr-~~~~-a-~~-a~e~~7--~&-~--he 
eese~ihee-iR-w~itiR~-aRe-si~Ree-hy-the-~a~tiesT 
§13273. Seller aqent 
1. 
Duty to seller. 
A ~eaJ:-e6~-a-t.e-..oc-<>*e-r~~&e-y-eR~a~ee 
hy-a seller ~: 
A. 
Shall perform the terms of the brokerage agreement made 
with the seller; 
B. 
Shall promote the interests of the seller by exercising 
agency duties as set forth in section 13272 including: 
(1) 
Seeking a sale at the price and terms stated in 
the 
brokerage 
agreement 
or 
at 
a 
price 
and 
terms 
acceptable 
to 
the seller except that 
the 
±ieeRsee 
seller agent is not obligated to seek additional offers 
to purchase the property while the property is subject 
to a contract of sale unless the brokerage agreement so 
provides; 
(2) 
Presenting in a timely manner all offers to and 
from the seller, even when the property is subject to a 
contract of sale; 
(3) 
Disclosing to the seller material facts of which 
the ;aeeRsee seller agent has actual knowledge or if 
acting 
in 
a 
reasonable 
manner 
should 
have 
known 
concerning 
the 
transaction, 
except 
as 
directed 
in 
section 13280; 
(4) 
Advising the seller 
material matters that are 
J:ieeRsee seller agent; and 
to obtain expert advice on 
beyond the expertise of the 
(5) 
Accounting in a timely manner for all money and 
property received in which the seller has or may have 
an interest; 
c. 
Shall exercise reasonable skill and care; 
• 
• 
D. 
Shall comply with all requirements of the laws governing 
real estate commission brokerage licenses 
and 
any rules 
adopted by the commission; 
E. 
Shall comply with any applicable federal, state or local 
laws, 
rules, 
regulations 
or 
ordinances 
related to 
real 
estate brokerage including fair housing and civil rights 
laws or regulations; 
F. 
Has an obligation to preserve confidential information 
provided by the seller during the course of the relationship 
that might have 
a 
negative impact on the seller's real 
estate activity unless: 
(1) 
The seller to whom the information pertains grants 
consent to disclose the information; 
(2) 
Disclosure of the information is required by law; 
(3) 
The information is made 
by the words or conduct of 
information pertains or from 
lieeasee seller agent; or 
public or becomes public 
the seller to whom 
the 
a source other than the 
(4) 
Disclosure is necessary to defend the lieeasee 
seller agent against an accusation of wrongful conduct 
in 
a 
judicial 
proceeding 
before 
the 
commission 
or 
before a professional committee; and 
G. 
Must be able to promote alternative properties not owned 
by 
the 
seller 
to 
prospective 
buyers 
as 
well 
as 
list 
competing properties for sale without breaching any duty to 
the client. 
2. 
Duty to buyer. 
The duty of a seller agent to a buyer is 
governed by the following. 
A. 
A !'eal- est.at.e-J:)H>-k-e-r-ag.e--age.n.<J¥--engage4-sy.-a seller agent 
shall treat all prospective buyers honestly and may not 
knowingly give false information and shall disclose in a 
timely manner to a prospective buyer all material defects 
pertaining to the physical condition of the property of 
which the !'ea~-es~a~e-9~e*e!'a~e-a~eaey seller agent knew or, 
acting in a reasonable manner, should have known. 
A Feal 
est:at:e-~~~-a~eaey seller agent is not liable to a 
buyer for providing false information to the buyer if the 
false information was provided to the 
!'eal-~~~-s~~e!'a~e 
a~eaey seller agent by the 
!'ea~-~~-e--9-~lfe.I'-ag€--a~eaey..!.s 
selle!'-elieat: seller agent's client and 
the 
!'eal--est:at:e 
9FelEeFa~e-a~eaey seller agent did not know or, acting in a 
reasonable 
manner, 
should 
not 
have 
known 
that 
the 
information 
was 
false. 
A 
Feal--estate--aFekeFa~e--a~eBey 
seller agent is not obligated to discover latent defects in 
the property. 
B. 
Nothing in this subchapter precludes the obligation of a 
buyer to inspect the physical condition of the property. 
A 
cause of action may not arise on behalf of 
any person 
against 
a 
Feal-~~~-~~~~-a~eBey seller agent for 
revealing information in compliance with this subchapter. 
C. 
A l'ea.-.e-s-t.;K ... ~~-89&--aqe-&G-y.-eB'!Ja'!JeEl-By--a--&e-],...J..e.t:--j,.:&-a 
Feal--&6-t-a-t.-e--t.-l'-&:&s&etieB seller agent may provide assistance 
to 
the 
buyer 
by 
performing 
ministerial 
acts 
such 
as 
preparing offers and conveying those offers to the seller 
and 
providing 
information 
and 
assistance 
concerning 
professional services not related to real estate brokerage 
services. 
Performing ministerial acts for the buyer may not 
be construed as violating the Feal-e6tate-Bl'ekel'a~e-a~eBey~6 
seller agent's 
agreement with the seller 
aBEl--~el'-~eFffiiB~ 
ffiiBistel'ia.-~~-~eF-~~-&~y&l'--may-~~-Be-~~~-as or 
forming a brokerage agreement with the buyer. 
Performing 
ministerial acts for the buyer does not make the seller 
agent a transaction broker for the buyer. 
§13274. Buyer agent 
1. 
Duty to buyer. 
A 
l'ea*-.e-s-t.-a.-t.€-k~-age--~:&e-y.-eB~a~eEl. 
ay-a buyer ~: 
A. 
Shall perform the terms of the brokerage agreement made 
with the buyer; 
B. 
Shall promote the interests of the buyer by exercising 
agency duties as set forth in section 13272 including: 
(1) 
Seeking a property at a price and terms specified 
by the buyer except that the lieeBsee buyer agent is 
not obligated to seek other properties for the buyer 
while the buyer is a party to a contract to purchase 
that property unless it is provided by the brokerage 
agreement; 
(2) 
Presenting in a timely manner all offers to and 
from the buyer; 
(3) 
Disclosing to the buyer material facts of which 
the 
a~eBey buyer agent has actual 
knowledge or, if 
acting 
in 
a 
reasonable 
manner, 
should 
have 
known 
concerning 
the 
transaction, 
except 
as 
directed 
in 
• 
section 13280. 
Nothing in this subchapter limits any 
obligation of a buyer to inspect the physical condition 
of the property; 
(4) 
Advising the buyer to obtain expert advice on 
material matters that are beyond the expertise of the 
a~eRey buyer agent; and 
(5) 
Accounting in a timely manner for all money and 
property received in which the buyer has or may have an 
interest; 
C. 
Shall exercise reasonable skill and care, except that a 
Feal-es~a~e-BFekeFa~e-a~eRey buyer agent is not obligated to 
discover latent defects in the property; 
D. 
Shall comply with all requirements of the laws governing 
real estate commission brokerage licenses 
and 
any rules 
adopted by the commission; 
E. 
Shall comply with any applicable federal, state or local 
laws, 
rules, 
regulations 
or 
ordinances 
related 
to 
real 
estate brokerage including fair housing and civil rights 
laws or regulations; 
F. 
Has an obligation to preserve confidential information 
provided by the buyer during the course of the relationship 
that might have a negative impact on the buyer's real estate 
activity unless: 
(1) 
The buyer to whom the information pertains grants 
consent to disclose the information; 
(2) 
Disclosure of the information is required by law; 
(3) 
The information is made public or becomes public 
by the words or conduct of the buyer to 
whom 
the 
information pertains or from a source other than the 
lieeRsee buyer agent; or 
(4) 
Disclosure is necessary to defend the lieeRsee 
buyer agent against an action of wrongful conduct in a 
judicial proceeding before the commission or before a 
professional committee; and 
G. 
Must be able to promote other properties in which the 
buyer is interested to other buyers 
who 
might 
also 
be 
clients of the 
Feal-~s-t-a-1;e--M«-e-£~-a~eRey buyer agent 
without breaching any duty or obligation. 
2. 
Duty to seller. 
The duty of a buyer agent to a seller 
is governed by the following. 
A. 
A 
I:'ea*-e£-ta-te-M-e.k~~-aqe.noy--enqaged--&y-a buyer agent 
shall treat all prospective sellers honestly and may not 
knowingly give 
them false 
information including material 
facts about the buyer's financial ability to perform the 
terms of the transaction. 
B. 
A ~ea*-estate-9Feke~a~e-a~eBey buyer agent is not liable 
to a seller for providing false information to the seller if 
the 
false 
information 
was 
provided 
to 
the 
~ea*--e6tate 
9F9keF~-a~eBey buyer agent by the 
~ea*--EHTt.-a-t-e--9~eke~a~e 
a~eBey~6--9~yeF-e*~eBt buyer agent's client and 
the 
~ea* 
e6tase-9~eke~a~e-a~eBey buyer agent did not know or, acting 
in 
a 
reasonable manner, 
should not have 
known that the 
information was false. 
A cause of action may not arise on 
behalf of any person against a 
~ea*--EH)-t.-a-t-e--b-r-o-lfe..~-a~eBey 
buyer agent for revealing information in compliance with 
this subchapter. 
C. 
A 
Fea*--e-£-ta-t-e--br'-(}k-e-r~~-e-~~-9y--a--b-uye-r--.i-a--a 
~ea*--EHTt.-a-t-e--s~aB6aet~eB buyer agent may provide assistance 
to 
the 
seller 
by 
performing 
ministerial 
acts 
such 
as 
preparing and conveying offers to the buyer and providing 
information and assistance concerning professional services 
not related to real estate brokerage services. 
Performing 
ministerial acts for the seller may not be construed as 
violating the 
~ea*--e-&t-a-t-e--b-~~~-a~eBey~6 buyer agent's 
agreement with the buyer 
aB~-pe~fel:'m~B~-m~B~sseFia*-aes6-fel:' 
sRe--&e-J..J~--fA.aij--Bet--be--GG-a-s-1:~-a6 QX. forming a brokerage 
agreement with the seller. 
r.e..rforming ministerial acts for 
the seller does 
not make 
the buyer agent 
a 
transaction 
broker for the seller. 
Sec. 9. 32 MRSA §13275, sub-§l, ~C, as enacted by PL 1993, c. 
679, §l, is amended to read: 
c. 
A statement that the disclosed dual agent may disclose 
any information to one party that the disclosed dual agent 
gains from the other party if that information is relevant 
to the transaction, except: 
(1) 
The willingness or ability of the seller to accept 
less than the asking price; 
(2) 
The willingness or ability of the buyer to pay 
more than has been offered; 
(3) 
Confidential negotiating strategy not disclosed in 
the sales offer as terms of the sale; and 
(4) 
The motivation of the seller for selling and the 
motivation of the buyer for buying; 
Sec. 10. 32 MRSA §13275, sub-§2, as enacted by PL 1993, c. 
679, §l, is amended to read: 
2. 
Cause of action. 
A cause of action may not be brought 
on behalf of any person against a disclosed dual agent for making 
disclosures permitted or required by this subchapter and the 
disclosed dual agent does not terminate any ~eal-es~a~e-eEeke~a~e 
a~eBey client relationship by making disclosures permitted or 
required by this subchapter. 
Sec. 11. 32 MRSA §13275, sub-§4 is enacted to read: 
4. 
Duty to parties. 
The duty of a disclosed dual agent to 
the client who is selling is the same as set forth in section 
13273, and the duty to the client who is buying is the same as 
set forth in section 13274, except that: 
A. 
A disclosed dual agent may not promote the interests of 
one party to the detriment of the other party except as 
required to comply with this section: and 
B. 
A disclosed dual agent may disclose any information to 
one party that the disclosed dual agent gains from the other 
party if that information is relevant to the transaction, 
except: 
(1) 
The willingness or ability of the seller to accept 
less than the asking price: 
(2) 
The willingness or ability of the buyer to pay 
more than has been offered; 
(3) 
Confidential negotiating strategy not disclosed in 
the sales offer as terms of the sale; and 
(4) 
The motivation of the seller for selling and the 
motivation of the buyer for buying. 
Sec. 12. 32 MRSA §13277, as enacted by PL 1993, c. 679, §l, 
is amended to read: 
§13277. Written po1icy 
Every real estate brokerage agency shall adopt a written 
company policy that identifies and describes the types of real 
estate brokerage 
a~eBey relationships in which the designated 
broker and affiliated licensees may engage. 
Sec. 13. 32 MRSA §13278, sub-§§2 and 4, as enacted by PL 1993, 
c. 679, §l, are amended to read: 
2. 
Hot a dual agent. 
A real estate brokerage agency and 
the designated broker are not considered to be dual agents solely 
because of an appointment under the provisions of this section, 
except that any affiliated licensee who personally represents 
both the seller and the buyer, 
as clients, 
in a particular 
transaction is considered to be a EliseleseEl dual agent and is 
required 
to 
comply 
with 
the 
provisions 
of 
this 
subchapter 
governing disclosed dual agents. 
4. 
Appointments; 
roles. 
Methods of appointment and the 
role of the real estate brokerage agency and the designated 
broker must be defined by rules adopted by the commission. 
The 
rules must include a requirement that clients be informed as to 
the real estate brokerage agency 0 s 
appointed agent policy and 
give written consent to that policy in advance of entering into a 
Feal-es~a~e brokerage agreement. 
Sec. 14. 32 MRSA §13279, as amended by PL 1999, c. 100, §l, 
is further amended to read: 
§13279. Real estate brokerage relationship disclosure required 
A real estate brokerage agency shall provide in a timely 
manner to buyers 
and sellers of residential real property a 
meaningful, 
written real estate brokerage 
a~eBey relationship 
disclosure form as defined and mandated by rules adopted by the 
commission. 
For 
purposes of this section, 
"residential real 
property" means real estate consisting of not less than one nor 
more than 4 residential dwelling units. 
Sec. 15. 32 MRSA §13281, sub-§l, as enacted by PL 1993, c. 
679, §1, is amended to read: 
1. 
Effective date. 
The relationships set forth in this 
subchapter commence on the effective date of the real estate 
brokerage 
agency 0 s 
brokerage 
agreement 
and 
continue 
until 
performance, 
completion, 
termination 
or 
expiration 
of 
that 
brokerage agreement. 
Sec. 16. 32 MRSA §13281, sub-§2, ~B, as enacted by PL 1993, c. 
679, §l, is amended to read: 
B. 
~Fea~iR~ For seller agents, byyer agents, subagents and 
disclosed dyal agents, treating as confidential information 
provided by the client during the course of the relationship 
that could have 
a 
negative impact on the client's real 
estate activity, unless: 
(1) 
The client to whom the information pertains grants 
written consent; 
(2) 
Disclosure of the information is required by law; 
(3) 
The information is made public or becomes public 
by the words or conduct of the client to whom 
the 
information pertains or from a source other than the 
real 
estate 
brokerage 
agency 
or 
the 
affiliated 
licensee; or 
(4) 
Disclosure is necessary to defend the real estate 
brokerage agency or an affiliated licensee against an 
action of wrongful conduct in a 
judicial proceeding 
before 
the 
commission 
or 
before 
a 
professional 
committee. 
Sec. 17. 32 MRSA §§13282 and 13283 are enacted to read: 
§13282. 
Presumption 
Except as otherwise provided in this sybchapter, 
a 
real 
estate brokerage agency providing real estate brokerage services 
is preswned to be acting as a transaction broker ynless the real, 
estate 
brokerage 
agency 
has 
agreed, 
in 
a 
written brokerage 
agreement, to represent one or more parties to the real estate 
transaction 
as 
the 
real 
estate 
brokerage 
agency's 
clients. 
Client representation may not be created orally or by implication 
or be asswned by a real estate brokerage agency or any party to a 
real estate transaction. 
§13263. 
Transaction broker 
1. 
Not an agent. 
A transaction broker does not represent 
any party as a client to a real estate transaction and is not 
bound by the duties set forth in section 13272. 
2. 
Responsibilities. 
A transaction broker shall: 
A. 
Account in a timely manner for all money and property 
received; 
B. 
Disclose in a timely manner to a buyer to a transaction 
all material defects pertaining to the physical condition of 
the property of which the transaction broker has actual 
notice or knowledge; 
C. 
Comply with all requirements of the laws governing real 
estate commission brokerage licenses and any rules adopted 
by the commission; 
D. 
Comply with any applicable federal, state or local laws, 
rules, 
regulations or ordinances 
related to 
real estate 
brokerage, including fair housing and civil rights laws or 
regulations; 
E. 
Treat all parties honestly and may not knowingly give 
false information; and 
F. 
Perform such ministerial acts as may be agreed upon 
between the transaction broker and one or more parties to a 
real estate transaction. 
A 
transaction 
broker 
is 
not 
liable 
for 
providing 
false 
information 
if 
the 
false 
information 
was 
provided 
to 
the 
transaction broker and the transaction broker did not know that 
the information was false. 
A transaction broker is not obligated 
to discover latent defects in the property. 
A cause of action 
does not arise on behalf of any person against a transaction 
broker who reveals information or makes disclosures permitted or 
required by this subchapter. 
3. 
Prohibited acts. 
A transaction broker may not: 
A. 
Conduct an inspection, investigation or analysis of a 
property for the benefit of any party; 
B. 
Verify the accuracy or completeness of oral or written 
st~tements made by the seller or buyer or any 3rd party; or 
C. 
Promote the interests of either party to a transaction 
except as required to comply with this section. 
4. 
No 
vicarious liability. 
A party to 
a 
real estate 
transaction is not vicariously liable for the acts or omissions 
of a transaction broker. 
5. 
Actual knowledge: information. 
In a situation in which 
one affiliated licensee acting as an appointed agent of a real 
estate brokerage agency represents 
a 
party to 
a 
real estate 
transaction as 
the real estate brokerage agency's client and 
another affiliated licensee of the same real estate brokerage 
agency is acting as a transaction broker for another party to the 
transaction, the real estate brokerage agency and its affiliated 
" 
• 
licensees are considered to possess only actual knowledge and 
information. 
There is no imputation of knowledge or information 
by operation of law among or between the parties, the real estate 
brokerage agency or its affiliated licensees. 
Sec. 18. Effective date. 
This Act takes effect January 1, 2006. 
SUMMARY 
This bill amends the real estate brokerage license laws as 
follows: 
1. 
It clarifies the definitions of the words "real estate 
brokerage agency" and "agency"; 
2. 
It repeals the current real estate brokerage contract 
section and enacts 
a 
section titled "Brokerage agreements." 
Brokerage agreements between 
a 
real estate 
company providing 
brokerage services to a client seller or buyer are required to be 
in writing, 
to include 4 specific contract provisions and to 
terminate a real estate company's rights to enforce an agreement 
after the expiration date against 
a 
client who 
engages 
the 
services of another real estate brokerage agency; 
3. 
It amends the trust account section to permit brokerage 
trust accounts to be maintained only in a 
federally insured 
financial institution authorized to do business in this State, as 
defined in the Maine Revised Statutes, Title 9-B, section 131, 
subsection l7-A, or a credit union authorized to do business in 
this State as defined in Title 9-B, section 131, subsection l2-A, 
and authorizes the Real Estate Commission to adopt rules to 
establish standards by which trust account records are to be 
maintained; 
4. 
It enacts 
Commission to adopt 
estate 
companies 
to 
retention schedule; 
a section that authorizes the Real Estate 
rules establishing the requirements for real 
maintain brokerage 
records, 
including 
a 
5. 
It 
amends 
the 
agency 
relationship 
subchapter 
and 
establishes 
a 
nonagent 
presumption 
standard 
for 
real estate 
brokerage companies called "transaction broker." 
The roles of 
the transaction broker, buyer agent, seller agent and disclosed 
dual agent are clarified and the responsibilities to buyers and 
sellers are established; and 
6. 
It adopts an effective date of January 1, 2006 for the 
bill. 
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