An Act To Protect Sellers in Residential Real Estate Transactions
Maine Legislature, Session 123, LD 2140
Committee: Business, Research and Economic Development
Sponsors: SIROIS, BRYANT, CRAVEN, FLETCHER, SAVAGE, NUTTING, CAREY, FAIRCLOTH, FINCH, GILES, HAYES, KNIGHT, PILON, RICHARDSON, SAMSON, WAGNER

Legislative Document 
No. 2140 
H.P.1520 
House of Representatives, January 9, 2008 
An Act To Protect Sellers in Residential Real Estate Transactions 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Representative SIROIS of Turner. 
'7J'l~ 1I?1llP£~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: BRYANT of Windham, CRAVEN of Lewiston, FLETCHER 
of Winslow, SAVAGE of Falmouth, Senator NUTTING of Androscoggin and 
Representatives: CAREY of Lewiston, FAIRCLOTH of Bangor, FINCH of Fairfield, GILES 
of Belfast, HAYES of Buckfield, KNIGHT of Livermore Falls, PILON of Saco, 
RICHARDSON of Warren, SAMSON of Auburn, WAGNER of Lewiston. 
Printed on reqcled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 33 MRS A c. 7, sub-c. I-B is enacted to read: 
SUBCHAPTER I-B 
RESIDENTIAL REAL ESTATE SELLERS PROTECTION ACT 
§181. Short title 
This subchapter may be known and cited as "the Residential Real Estate Sellers 
Protection Act. " 
§182. Definitions 
As used in this subchapter, unless the context otherwise indicates, the following 
terms have the following meanings. 
1. Loan closing. "Loan closing" means the time agreed upon by the borrower and 
lender when the execution of the loan documents by the borrower and the receipt of those 
executed documents by the lender or settlement agent occur. 
2. Settlement. "Settlement" means the time when the settlement agent has received 
the loan funds, loan documents and other documents and funds to carry out the terms of 
the contract between the parties and the settlement agent reasonably determines that all 
conditions for disbursement of the settlement proceeds as required by applicable law or 
such contracts have been satisfied. For purposes of this subsection, "parties" means the 
seller, purchaser, borrower, lender and the settlement agent. 
3. 
Settlement agent. 
"Settlement agent" means the person responsible for 
conducting a settlement and disbursement of the settlement proceeds. "Settlement agent" 
includes an individual, corporation, partnership or other entity conducting the settlement 
and disbursement of loan proceeds. The lender may be the settlement agent. 
§183. Application 
This subchapter applies to transactions: 
1. 
Purposes. 
That are incurred primarily for personal, family or household 
purposes; 
2. Location of lender or closing. When the lending office or branch from which a 
loan is made is located in this State, a loan closing occurs within this State or the property 
is located in this State; and 
3. Secured by mortl?:al?:es. That are secured by mortgages on real estate containing 
not more than 4 residential dwelling units. 
§184. Duty of municipality to offer means of notification of transfer 
Each municipality shall develop a method by which a settlement agent or the seller of 
residential real estate may notify the municipality of the sale or transfer of a property. 
This notification must be accomplished on forms satisfactory to the municipality or by an 
alternate means satisfactory to the municipality. 
§185. Duty of settlement agent 
A settlement agent shall either: 
1. 
Notification to municipality. Notify the municipality where the property is 
located of a sale or transfer of residential real property pursuant to the method developed 
pursuant to section 184; or 
2. Require nrenavment of nronertv taxes. Cause the purchaser of residential real 
estate to pay all property taxes on the purchased property to the municipality from the 
date of closing to April 1 st of the subsequent year. 
§186. Lien to be filed in name ofpurcbaser 
If the settlement agent or the seller of residential real estate has notified the 
municipality of a sale or transfer of property pursuant to section 185, then any subsequent 
lien resulting from nonpayment of property taxes must be filed and recorded in the name 
of the purchaser of the property and not in the name of the previous owner of the 
property. 
§187. Penalty 
1. Consumer remedies. A settlement agent who violates any provision of this 
subchapter and causes actual damage to a seller or purchaser is subject to a civil action by 
the aggrieved seller or purchaser in which the seller or purchaser has the right to recover 
the greater of actual damages in an amount determined by the court and, except as 
provided in subsection 2, an amount determined by the court of not less than $250 nor 
more than $1,000, plus costs of the action together with reasonable attorney's fees. 
2. Bona fide error. Liability under subsection 1 is limited to actual damages, plus 
costs of the action together with reasonable attorney's fees, if the settlement agent shows 
by a preponderance of the evidence that the violation was not intentional and resulted 
from a bona fide error despite the maintenance of procedures reasonably adopted to avoid 
1 
such an error. 
3. Limitation of actions. An action may not be brought pursuant to this subchapter 
more than 2 years after the violation occurred. 
§188. Enforcement 
The Superintendent of Consumer Credit Protection shall enforce this subchapter 
pursuant to the superintendent's administrative powers as set forth in Title 9-A, Article 6. 
SUMMARY 
Under current law, a seller of real estate is liable to a municipality for property taxes 
from the date of sale through the following April 1 st if the buyer of the property fails to 
pay those taxes. 
This bill makes the settlement agent, the entity performing the closing on residential 
property, responsible for notifying a municipality of the sale or for requiring those taxes 
to be paid at closing and remitted to the municipality. 
The bill also requires that 
municipalities develop a method by which a settlement agent or the seller of residential 
property may notify the municipality of a sale, and, if subsequent nonpayment of taxes 
results in a lien on the property, the lien be filed and recorded in the purchaser's name, not 
in the name of the former owner.