An Act To Protect Consumers and Enhance Real Estate Practice
Maine Legislature, Session 122, LD 1484
Committee: Business, Research and Economic Development
Sponsors: BROMLEY, RECTOR, BERUBE, KOFFMAN
Amends: 32 MRSA §13001, 32 MRSA §13067, 32 MRSA §13069, 32 MRSA §13197, 32 MRSA §13199, 32 MRSA §13200, 33 MRSA §173

Legislative Document 
No. 1484 
S.P.510 
In Senate, March 24, 2005 
An Act To Protect Consumers and Enhance Real Estate Practice 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Senator BROMLEY of Cumberland. 
Cosponsored by Representative RECTOR of Thomaston and 
Representatives: BERUBE of Lisbon, KOFFMAN of Bar Harbor. 
Printed on recyc led paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 32 MRSA §13001. sub-§2. 1f1fG and H. as enacted by PL 
1987, c. 395, Pt. A, §212, are amended to read: 
G. 
Acting as a finder to facilitate the purchase, sale or 
exchange of real estate; aRa 
H. 
Buying, selling or exchanging real estateT; and 
Sec. 2. 32 MRSA §13001. sub-§2.1fI is enacted to read: 
I. 
Commercial leasing. 
Sec. 3. 32 MRSA §13067, sub-§I. 1fL. as amended by PL 1999, c. 
129, §5 and affected by §16, is further amended to read: 
L. 
Failure 
to 
produce 
to 
the 
director 
documents 
in 
the 
licensee's 
possession 
licensee's 
control 
concerning 
any 
investigation; asa 
any 
requested 
or 
under 
the 
matter 
under 
Sec. 4. 32 MRSA §13067. sub-§1. 1fM. as enacted by PL 1991, c. 
53, §5, is amended to read: 
M. 
Failing to comply with a commission order or the terms 
of an executed and approved consent agreementT; and 
Sec. 5. 32 MRSA §13067, sub-I. §N is enacted to read: 
N. 
Failing to provide the minimum services reguired by 
section 13177 when acting under a brokerage agreement. 
Sec. 6. 32 MRSA §13069. sub-§6. as amended by PL 1999, c. 129, 
§6 and affected by §16, is further amended to read: 
6. 
Investigations. 
The 
director 
shall 
investigate 
the 
actions of any licensee under this chapter, 
SF any person or 
entity who assumes to act in a capacity requiring a license under 
this chapterT or any person or entity who has operated without a 
license as set forth in section 13070, upon receipt of a verified 
written complaint or in accordance with the guidelines prescribed 
by commission rule. 
Upon completion of the investigation, the 
director shall take one of the following actions: 
A. 
With the commission's approval, dismiss the complaint; 
B. 
With the consent of the parties and subject to approval 
of the commission and commission counsel, execute a consent 
agreement; or 
C. 
Issue 
commission, 
a 
staff 
petition 
for 
hearing 
before 
which may include a recommended disposition. 
Sec. 7. 32 MRSA §§13070 and 13071 are enacted to read: 
§13070. 
Civi~~ty for QRer~ting without license 
the 
1. 
Investigatlon. 
Upon receipt of a written complaint or 
upon the director of the commission's own motion, the director 
may investigate any person who has allegedly violated section 
13003, 
2. 
Prosecution 
by 
Attorney 
General. 
If, 
after 
investigation, the director determines that reasonable evidence 
of a violation of section 13003 exists, within 7 business days 
after 
that 
determination 
the 
director 
shall 
present 
to 
the 
Attorney 
General 
the 
evidence 
compiled 
as 
part 
of 
this 
investigation for prosecution under Title 10, section 8003-C. 
3. 
Prosecution by commission. 
If the Attorney General 
fails to prosecute the violation, the commission may prosecute 
the violation. 
Prosecution by the commission must be conducted 
according to this subsection. 
A. 
The 
director 
shall 
notify 
the 
person 
suspected 
of 
unlicensed practice. 
The notice must be in writing, be sent 
2R 
by regular mail and include the following: 
(1) 
A description of the activity engaged in by the 
person that is a violation of section 13003; 
(2) 
A statement that a hearing concerning the alleged 
violation will be held and the date and place of that 
hearing; and 
(3) 
A statement that the person may, either in person 
or through the person's attorney: 
(a) 
ZWg~_gr at the hearing and gresent evidence 
and examine witnesses for and against the person; 
9r 
~ 
Submit written testimony stating the person's 
gosition, arguments or contentions. 
B. 
The commission shall hear the testimony of all persons 
present at the hearing and consider any written testimony 
submitted 
pursuant 
to 
paragraph 
A, 
subparagraph 
(3), 
division (b) and determine if there has been a violation of 
section 13003. 
If the commission finds that a violation has 
occurred, the commission may issue a cease and desist order, 
assess a civil penalty in an amount it determines, but not 
to exceed $2,000 per violation, or issue any other decision 
pursuant to section 13068. 
Each day a violation occurs or 
continues is a 
separate violation. 
The 
commission shall 
determine 
the 
terms 
of 
payment. 
The 
commission 
shall 
maintain a transcript of the proceedings of the hearing and 
issue a written opinion to all parties, citing its findings 
and grounds for any action taken. 
C. 
If a 
person fails to pay 
a civil penalty assessed 
pursuant to paragraph B wi thin the time prescribed by the 
commission, the director may forward to the Attorney General 
the name of the person and the amount of the civil penalty 
for 
the 
purpose 
of 
collecting that civil 
penalty. 
In 
addition to the civil penalty assessed pursuant to paragraph 
B, the person also must pay any fee assessed by the Attorney 
General for collection of the civil penalty. 
§13071. 
Private cause of action 
1. 
Injunction. 
In addition to the penalty and complaint 
provisions of this chapter, an injunction may be granted through 
an action in district court to prohibit a person from engaging in 
an activity that violates the provisions of section l3003. 
The 
action for injunctive relief may be brought only by an affected 
person. 
For the purposes of this section, 
"affected person" 
means any person upon whom the actions of a person suspected of 
violating the 
prov~s~ons of section 13003 
have had 
a 
direct 
impact. 
"Affected person" may include, but is not limit.ed to, 
the commission, a person who has used the services of a person 
suspected of violating the provisions of section 13003 or 
a 
private association composed primarily of members practicing a 
profession for 
which licensure is required pursuant to this 
chapter. 
2. 
Costs and attorney's fees. 
If a person is successful in 
obtaining injunctive relief, that person is entitled to actual 
costs 
and 
attorney's 
fees 
unless 
the 
person 
suspected 
of 
violating 
a 
prov~s~on 
of 
section 
13003 
prevails 
in 
any 
application for permanent injunctive relief. 
For the purposes of 
this 
section, 
"actual 
costs" 
means 
those 
costs 
other 
than 
attorney's fees that were actually incurred in connection with 
the action, including, but not limited to, 
court and witness 
fees, 
investigative expenses, 
travel expenses, 
legal 
research 
expenses and other related fees and expenses. 
Sec.S. 32MRSA§13177, as amended by PL 1999, c. 129, §8, is 
further amended to read: 
§13l11. Real estate brokerage contracts 
Nonexclusive listing contracts relating to one to 4 family 
residential 
properties, 
in 
addition 
to 
all 
exclusive 
right-to-sell and exclusive agency listing contracts L 
must be in 
writing, 12-e. signed by the person to be charged and specifically 
identify the date upon which the contract will expire. 
If the 
parties to the contract desire to continue the contract, a new 
contract must be executed. 
Brokerage 
contracts 
may 
not 
be 
enforced 
against 
any 
principal who in good faith subsequently engages the services of 
another agency on an exclusive right-to-sel1 basis following the 
expiration date of the first contract. Any contract provisions 
extending a licensee's right to a fee following expiration of the 
contract shall may not exceed 6 months. 
Brokerage 
agreements 
must 
specify that 
the 
real 
estate 
brokerage agency shall, at a minimum: 
delivery of and present to the client offers and counteroffers to 
buy or sell the client's property or the property the client 
seeks to~rchase; 
2. 
Assist 
in preparation of offers 
and 
counteroffers. 
Assist the client in developing, communicating, negotiating and 
presenting offers, counteroffers and notices that relate to the 
offers and counteroffers until a purchase agreement is signed and 
all contingencies are satisfied or waived; 
3. 
Answer 
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relating to the offers, counteroffers, notices and contingencies; 
4. 
Other services. 
Provide any other minimum services or 
standards adopted by the commission through rulemaking pursuant 
to section 13065, subsection 3. 
Sec. 9. 32 MRSA §13197, sub-§l, as amended by PL 1999, c. 129, 
§ll and affected by §16, is further amended to read: 
1. 
Requirement. As a prerequisite to renewal of a license, 
applicants 
must 
complete 
clock 
hours 
of 
continuing 
education wi thin 2 years prior to the date of application in 
programs or courses approved by the commission. This requirement 
does not apply to agency and company licenses. 
Sec. 10. 32 MRSA §13199. sub-§2. as amended by PL 1999, c. 
129, §12 and affected by §16, is repealed. 
Sec.H. 32 MRSA §13199. sub-§2-A is enacted to read: 
2-A. 
Professional qualifications. 
Each applicant for 
an 
associate broker license must have practiced as a real estate 
sales agent for 2 years within the 5 years immediately preceding 
the date of application and satisfactorily completed a course of 
study meeting guidelines establjshed by 
the 
commission. 
The 
commission may not issue a license under this section until an 
individual has completed 2 years as a licensed real estate sales 
agent. 
Sec. 12. 32 MRSA §13200. sub-§2. as enacted by PL 1987, c. 
395, Pt. A, §212, is amended to read: 
2. 
Professional qualification. Each applicant for a sales 
agent license shall meet 9Be-9E the following qualificationsT~ 
A. 
The applicant shall satisfactorily complete a course of 
study of at least 84 hour's, meeting commission established 
guidelinesT: and 
B. 
The applicant may shall appear at such time and place as 
the director may designate for the purpose of 
a written 
sales agent examination. 
Sec. 13. 33 MRS A §171. sub-§§2 and 4. as enacted by PL 1999, c. 
476, §1, are amended to read: 
2. 
Seller. 
"Seller" means 
the owner of 
real 
property 
that 
is 
for 
sale, 
exchange, 
installment contract or lease with 
an option 
seller's licensed real estate brokerage 
agency 
Title 32, section 13271, subsection 10. 
the residential 
sale 
under 
an 
to 
buy or the 
as defined in 
4. 
Purchaser. 
"Purchaser" means a transferee in any of the 
types of transactions described in section 172 or the purchaser's 
licensed real estate brokerage agency as defined in Title 32, 
section 13271, subsection 10. 
Sec. 14. 33 MRSA §l72. first~. as enac ted by PL 1999, c. 476, 
§l, is amended to read: 
This subchapter applies to the transfer of any interest in 
residential real property, whether by sale, exchange, installment 
land contract, lease with an option to purchase or any other 
option 
to 
purchase T -
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Bli'elEeli'a~e. 
subchapter: 
The 
following 
transfers 
are 
exempt 
from 
this 
Sec. 15. 33 MRSA §173. sub-§2. as enacted by PL 1999, c. 476, 
§l, is repealed. 
Sec. 16. 33 MRSA §173, sub-§2-A is enacted to read: 
A. 
Heating system or heating source. 
The seller shall 
disclose: 
A. 
The type of heating system or source; 
B. 
The age of the heating system or source; 
C. 
The name of the company that services the heating system 
or source; 
D. 
The date of the most recent service calIon the heating 
system or source; 
E. 
The 
annual 
fuel 
consumption 
per 
heating 
system 
or 
source; and 
F. 
Any malfunctions per heating system or source within the 
past 2 years. 
Sec. 17. 33 MRS A § 173. sub-§4. 1fD. as enac ted by PL 1999, c. 
476, §l, is amended to read: 
D. 
Underground oil storage tanks as required under Title 
38, section 563, subsection 6; ass 
Sec. 18. 33 MRSA § 173. sub-§5. as enac ted by PL 1999, c. 476, 
§l, is amended to read: 
5. 
Known defects. 
Any known defectsT; and 
Sec. 19. 33 MRSA §173. sub-§6 is enacted to read: 
6. 
Otb.e:r... __ 
bny~~t~r 
__ infoXlT@t.ig_~e_termined to 
required disclosure 
and 
adopted 
by 
rule 
by 
the 
Real 
Commission pursuant to Title 32, section 13065. 
SUMMARY 
This bill 
amends 
various statutes affecting real 
brokerage agencies. 
The bill adds 
commercial leasing 
definition of "real estate brokerage." 
be 
a 
Estate 
estate 
to the 
The bill provides several methods to protect consumers from 
unlicensed 
real 
estate activity. 
It gives 
the 
Real 
Estate 
Commission the authority to investigate and prosecute unlicensed 
real estate activity. 
It also creates a private cause of action 
by which an affected party may seek a court-ordered injunction to 
prohibit unlicensed real estate activity. 
The bill does 
not 
affect 
the 
authority 
of 
the 
Attorney 
General's 
office 
to 
investigate and prosecute unlicensed real estate activity. 
The bill provides minimum service standards for real estate 
brokerage agencies. 
The bill amends the educational provisions for real estate 
brokerage licensees. 
The bill increases the continuing education 
requirement for licensees from 15 hours to 21 hours. 
The bill 
removes 
the 
requirement 
that associate 
real estate brokerage 
license applicants take an examination. 
Additionally, the bill 
requires that applicants for a real estate sales agent license 
both complete a course of study of no less than 84 hours and take 
an examination. 
The bill requires that real estate brokerage licensees, as 
well 
as 
owners 
selling 
their 
own 
homes, 
provide 
property 
disclosures containing certain information. 
The 
bill 
updates 
the 
seller's 
mandatory 
disclosures 
involving reference to heating systems and sources rather than to 
insulation. 
The bill also authorizes the Real Estate Commission 
to adopt other mandatory disclosures through rulemaking.