An Act T-D _ Protect Sellers in Residential Real Estate Transactions
Maine Legislature, Session 123, LD 2140
Committee Amendment CA_A_H812 (House)
Amends: 36 MRSA §558-A

COMMITTEE AMENDMENT "A " 
to H.P. 1520, L.D. 2140, Bill, "An Act T-D _ 
Protect Sellers in Residential Real Estate Transactions" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Protect Parties to Real Estate Transactions' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRSA §558-A is enacted to read: 
§558-A. Liability for failure to pay prorated property taxes 
1. Civil action authorized. If after a real estate closing in which the parties have 
prorated property taxes pursuant to section 558, any party knowingly fails to pay that 
party's share of the taxes, which results in a lien being filed, any other party to the 
transaction who pays the taxes that are owed by the delinquent party may recover in a 
civil action from the delinquent party the amount of unpaid taxes, costs incurred in 
releasing the lien and reasonable attorney's fees. 
2. Effect on credit rating. If a party prevails in an action filed under subsection I 
and a record of a lien in that party's name has been placed in that party's file with a 
consumer reporting agency, that lien must be considered inaccurate information under 
Title 10, section 1317 if the party requesting relief submits a copy of the court judgment 
and proof of payment of the lien to the consumer reporting agency. 
Sec. 2. Guidance document. The Department of Administrative and Financial 
Services, Bureau of Revenue Services shall prepare a guidance document for sellers and 
buyers of real estate to provide information about problems that can arise as the result of 
the allocation of responsibility for the payment of property taxes among the parties when 
property is transferred. The guidance document must take substantially the following 
form. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "~,, to H.P. 1520, L.D. 2140 
IMPORTANT NOTICE ABOUT PROPERTY TAXES FOR BUYERS AND 
SELLERS 
1. UNDER MAINE LAW PAYMENT OF PROPERTY TAXES IS THE 
RESPONSIBILITY OF THE PERSON WHO OWNS THE PROPERTY ON APRIL 
1ST. 
2. THE BUYER AND SELLER MAY AGREE TO DIVIDE THE TAXES BETWEEN 
THEM, BUT IF ANY PART OF THE TAXES IS NOT PAID, A LIEN WILL BE FILED 
IN THE NAME OF THE PERSON WHO OWNED THE PROPERTY ON APRIL 1 ST. 
PLEASE BE A WARE 
IF YOU ARE THE SELLER -- EVEN IF YOU NO LONGER OWN THE 
PROPERTY, A LIEN MAY HAVE A NEGATIVE EFFECT ON YOUR CREDIT 
RATING. 
IF YOU ARE THE BUYER -- IF A LIEN IS FILED IN THE SELLER'S NAME, 
THE MUNICIPALITY MAY FORECLOSE ON YOUR PROPERTY UNLESS THE 
TAXES ARE PAID. 
3. MUNICIPALITIES HAVE DIFFERENT FISCAL YEARS AND TAX DUE DATES. 
4. MAKE SURE YOU UNDERSTAND THE BUYER'S AND SELLER'S 
OBLIGATIONS WITH REGARD TO PROPERTY TAXES AND WHAT MAY 
HAPPEN IF TAXES ARE NOT PAID AS AGREED. 
5. IF YOU FEEL A LIEN HAS BEEN FILED INCORRECTLY IN YOUR NAME, 
PLEASE CONTACT THE BUREAU OF CONSUMER PROTECTION TO 
DETERMINE WHAT REMEDIES ARE AVAILABLE TO YOU TO REPAIR YOUR 
CREDIT RATING. 
THESE POTENTIAL PROBLEMS CAN BE AVOIDED BY PROVIDING THAT 
FUNDS ARE SET ASIDE IN ESCROW AT THE TIME OF CLOSING TO ENSURE 
THAT PROPERTY TAXES WILL BE PAID. 
Seller: ............................................. . 
Buyer: ............................................ . 
Date: ............................................... . 
Date: .............................................. . 
Sec. 3. Distribution. The Department of Administrative and Financial Services, 
Bureau of Revenue Services shall provide a copy of the guidance document prepared 
pursuant to section 2 to each municipal office and to real estate agents, real estate lenders, 
settlement agents, the Maine State Housing Authority and any other person the bureau 
determines is likely to be involved in a professional capacity in the transfer of property 
subject to property tax in this State and request that those persons make a copy of the 
guidance document available to buyers and sellers at any point in the process of the 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ~. 
to H.P. 152., L.D.2I4 • 
transfer of property when the allocation of property taxes is discussed and with any 
notices relating to property tax liens. 
Sec. 4. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services - Bureau of 0002 
Initiative: Provides one-time funds for the printing and mailing costs associated with the 
required guidance notic.e to buyers and sellers of real estate. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
SUMMARY 
2007-08 
$0 
$0 
2008-09 
$1,250 
$1,250 
This amendment requires the Department of Administrative and Financial Services, 
Bureau of Revenue Services to prepare and distribute a guidance document to sellers and 
buyers of real estate to provide information about problems that can arise as the result of 
the proration of responsibility for the payment of property taxes among the parties when 
property is transferred in order to ensure that the parties are better informed about the 
potential implications of the allocation of property taxes incident to the transfer. It also 
authorizes a party to a property tax proration to bring legal action against a party who 
does not pay that party's share of the property taxes and to recover the costs of 
discharging a lien and attorney's fees. A party who prevails in such an action who pays 
delinquent taxes may have information about a lien in that party's credit report designated 
as inaccurate information. The amendment also adds an appropriations and allocations 
section. 
FISCAL .\()TF In:()t IRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/24/08 frac 
LD 2140 
LR 2785(02) 
An Act To Protect Sellers in Residential Real Estate Transactions 
Fiscal Note for Bill as Amended by Committee Amendment "R" 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
2008-09 
Projections 
2009-10 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Fiscal Detail and Notes 
$0 
$0 
$1,250 
$0 
$1,250 
$0 
Projections 
2010-11 
$0 
$0 
This bill includes a one-time General Fund appropriation in fiscal year 2008-09 for Maine Revenue Services for the 
printing and mailing costs associated with the required guidance notice to buyers and sellers of real estate. 
LR2785(02) - Fiscal Note - Page I of I