An Act To Protect Time-share Condominium Associations
Maine Legislature, Session 125, LD 1448
Committee: Judiciary
Sponsors: CROCKETT, PATRICK, CRAY, HAYES, PRIEST, RICHARDSON, WATERHOUSE, BLISS
Amends: 33 MRSA §594, 33 MRSA §595, 33 MRSA §596

Legislative Document 
No. 1448 
H.P. 1062 
House of Representatives, April 11, 2011 
An Act To Protect Time-share Condominium Associations 
Reference to the Committee on Judiciary suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative CROCKETT of Bethel. 
Cosponsored by Senator PATRICK of Oxford and 
Representatives: CRAY of Palmyra, HAYES of Buckfield, PRIEST of Brunswick, 
RICHARDSON of Warren, WATERHOUSE of Bridgton, Senator: BLISS of Cumberland. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  33 MRSA §594, sub-§1, as repealed and replaced by PL 2005, c. 572, §1, 
is amended to read: 
1.  Lien created.  A managing entity has a lien on a time share for any assessment for 
expenses of the time share or taxes or fines levied against that time share in accordance 
with the project instrument or municipal or state law from the time the assessment, tax or 
fine becomes due.  A lien against a time-share estate may be foreclosed as provided in 
section 595, subsection 1, and a lien against a time-share license may be foreclosed as 
provided in section 595, subsection 2.  Unless the project instrument otherwise provides, 
fees, charges, late charges, fines and interest charged in accordance with the project 
instrument are enforceable as assessments under this section.  If an assessment is payable 
in installments, the full amount of the assessment is a lien from the time the first 
installment thereof becomes due.  The managing entity shall record notice of a lien on a 
time-share estate in the registry of deeds in the county in which the time-share estate is 
located.  A notice of a lien on a time-share license must be recorded in the public records 
for the filing of security interests governed by the Uniform Commercial Code.  If there is 
more than one lien, they may be listed in one filing.  A copy of the notice of a lien on a 
time-share estate or time-share license must be sent by first class mail to the last known 
address of the time-share owner.  A notice of a lien on a time-share estate or time-share 
license must include a statement that the federal Servicemembers' Civil Relief Act of 
2003 applies to enforcement of liens when the owner of the time-share estate or 
time-share license is or was recently in military service. 
Sec. 2.  33 MRSA §595, sub-§1, as amended by PL 2007, c. 466, Pt. A, §55, is 
further amended to read: 
1.  Nonjudicial foreclosure of time-share estate.  A time-share owner may grant to 
a financial institution or other person a mortgage with a power of sale on that owner's 
time-share estate that is governed by the terms of this section.  The foreclosure of a 
mortgage with a power of sale or a lien from an assessment created pursuant to section 
must may be conducted pursuant to this section.  The provisions of Title 14, chapter 
do not apply to any such foreclosure. 
In the event of a breach of the conditions of the power of sale mortgage or the failure of 
the time-share owner to pay the assessments as and when due and owing the following 
procedure must may be followed. 
A.  Upon default, and after all applicable cure periods have expired, the person 
seeking to foreclose shall provide written notice of the default to the time-share 
owner at the owner's last known address by certified mail, return receipt requested, 
and by first class mail and provide a reasonable opportunity to cure of not less than 
days from the date of the mailing of the notice letter. 
B.  If, after expiration of the 30-day period under paragraph A, the time-share owner 
has not cured the default in the manner prescribed, the person seeking to foreclose 
shall conduct a public auction under the conditions described in this paragraph. 
(1)  Notice under this paragraph must be given as follows. 
(a)  Notice of the sale must be published once in each of 3 successive weeks 
in a newspaper with a general circulation in the town in which the time-share 
property is situated.  The first publication must be not later than 30 days 
before the date of the sale, calculated by excluding the date of publication of 
the first notice and the date of sale. 
(b)  A written notice of the time, date and place of the auction must be mailed 
to the last known address of the time-share owner of record by certified mail, 
return receipt requested, and by first class mail at least 30 days prior to the 
date of sale. The notice to the time-share owner must include the following 
language: "You are hereby notified that you have a right to petition the 
Superior Court or District Court for the county or district in which the 
time-share estate is located, with service on the foreclosing person, and upon 
such bond as the court may require, to enjoin the scheduled foreclosure sale."  
The notice of sale also must be sent by certified mail, return receipt 
requested, to all persons having a lien on the time-share estate at least 30 
days prior to the date of the foreclosure sale. 
(c)  The notice must contain: 
(i)  The name of the time-share owner; 
(ii)  The date, time and place of the foreclosure sale; 
(iii)  A general description of the time-share estate; and 
(iv)  The terms of the sale. 
If more than one time-share estate is to be included in the foreclosure sale, all 
such time-share estates may be combined into one notice of sale, with one 
property description, as described in division (d) or (e). 
(d)  The notice of foreclosure for foreclosing on the lien of a time-share estate 
must be printed in substantially the following form: 
NOTICE OF SALE OF TIME-SHARE ESTATE OR ESTATES UNDER 
TITLE 33, SECTION 595 OF THE MAINE REVISED STATUTES 
ANNOTATED 
By virtue of the project instrument of the ........................(name and address 
of time-share property) and Title 33, section 594 establishing a lien for 
failure to pay assessments on the time-share estate (or estates, if more than 
one) held by the time-share owner (or owners, if more than one) listed below, 
the time-share estate (or estates, if more than one) will be sold at Public 
Auction commencing at ........ on .......... , 20.. at ............................, Maine.  
(For each time-share estate, list the name and address of the time-share 
owner, a general description of the time-share estate and the book and page 
number of the deed.) 
TERMS OF SALE:  (State the deposit amount to be paid by the purchaser at 
the time and place of the sale and the times for payment of the balance or the 
whole, as the case may be. The time-share estates, if more than one, must be 
sold in individual lots unless there are no individual bidders, in which case 
they may be sold as a group.) 
Other terms to be announced at the sale. 
Signed......................... 
Lienholder or authorized agent. 
(e)  For foreclosure of a mortgage lien containing a power of sale on a time-
share estate, a notice of sale must be printed in substantially the following 
form: 
NOTICE OF SALE OF TIME-SHARE ESTATE OR ESTATES UNDER 
TITLE 33, SECTION 595 OF THE MAINE REVISED STATUTES 
ANNOTATED 
By virtue of Title 33, section 595 and in execution of the power of sale 
contained in a certain mortgage (or mortgages, if more than one) on the time-
share estate (or estates, if more than one) given by the time-share owner (or 
owners, if more than one) set forth below for breach of the conditions of said 
mortgage (or mortgages, if more than one) and for the purpose of foreclosing, 
the same will be sold at Public Auction commencing at ..... on ........, 20.. at 
......................, Maine, being all and singular the premises described in said 
mortgage (or mortgages, if more than one). (For each mortgage, list the name 
and address of the time-share owner, a general description of the time-share 
estate and the book and page number of the mortgage.) 
TERMS OF SALE:  (State the deposit amount to be paid by the purchaser at 
the time and place of the sale and the times for payment of the balance or the 
whole, as the case may be. The time-share estates, if more than one, must be 
sold in individual lots unless there are no individual bidders, in which case 
they may be sold as a group.) 
Other terms to be announced at the sale. 
Signed ........................ 
Holder of Mortgage or authorized agent. 
(f)  The notice of sale in the forms described in divisions (d) and (e), 
published in accordance with the provisions of this section, together with 
such other or further notice, if any, constitutes sufficient notice of the sale. 
(2)  The foreclosure sale must be conducted pursuant to this subparagraph. 
(a)  The foreclosure sale must take place on the time-share property or some 
other location within the same town as the time-share property. 
(b)  The foreclosure sale must be by public auction, conducted by an 
auctioneer or attorney licensed to practice in the State.  At the discretion of 
the auctioneer or attorney, the reading of the names of the time-share owners, 
if more than one, the description of time-share estates, if more than one, and 
the recording information, if more than one instrument, may be dispensed 
with. 
(c)  All rights of redemption of the time-share owner are extinguished upon 
sale of a time-share estate. 
(d)  The managing entity, the foreclosing person or any time-share owner 
may bid at the foreclosure sale.  The successful buyer at the foreclosure sale 
takes title to the time-share estate free and clear of any outstanding 
assessments owed by the prior time-share owner to the managing entity.  A 
purchaser at a sale is not required to complete the purchase if there are liens 
and encumbrances, other than those included in the notice of sale, that are not 
stated at the sale and included in the foreclosing person's contract with the 
purchaser. 
(e)  Upon closing, the foreclosing person shall provide the buyer with a 
foreclosure deed or other appropriate instrument transferring the rights to the 
time-share estate and an affidavit attesting that all requirements of the 
foreclosure pursuant to this section have been met.  The time-share estate is 
deemed to have been sold, and the instrument conveying the time-share 
estate must transfer the time-share estate, subject to municipal or other public 
taxes and to any liens and encumbrances recorded prior to the recording of 
the mortgage or the lien for assessments. 
(f)  The buyer shall record the foreclosure deed or other instrument with the 
appropriate registry of deeds no more than 30 days after the foreclosure sale 
date. 
(g)  Within 30 days after the closing and transfer of the foreclosure deed or 
other instrument and affidavit, the foreclosing person shall mail a notice 
detailing the results of the foreclosure sale to the last known address of the 
former time-share owner and all parties that held a junior interest to that of 
the foreclosing person. 
Sec. 3.  33 MRSA §596 is enacted to read: 
§596.  Foreclosure of time share 
1.   Foreclosure of lien for assessment or mortgage on time-share estates.  A lien 
against a time-share estate or a mortgage on a time-share estate held by or on behalf of a 
managing entity may be foreclosed either: 
A.  As provided in section 595, subsection 1 or 3; or 
B.  By obtaining possession of the time-share estate for the purpose of foreclosure by 
entry, if not opposed.  The mortgagee or lienholder may enter peaceably and openly, 
if not opposed, in the presence of 2 witnesses and take possession of the premises 
composing the time-share estate.  A certificate of the fact and time of the entry must 
be made, signed and sworn to by the witnesses before a notary public or an attorney.  
The certificate must be recorded in each registry of deeds in which the mortgage is or 
by law ought to be recorded, within 30 days after the entry is made.  Possession 
obtained in this manner and continued for one year forever extinguishes the right of 
redemption. 
2.  Foreclosure of lien for assessment or mortgage lien on time-share license.  A 
lien against a time-share license or a mortgage on a time-share license held by or on 
behalf of a managing entity may be foreclosed: 
A.  As provided in section 595, subsection 2; 
B.  Under the Uniform Commercial Code; or 
C.  By obtaining possession of the time-share license for the purpose of foreclosure 
by entry, if not opposed.  The mortgagee or lienholder may enter peaceably and 
openly if not opposed in the presence of 2 witnesses and take possession of the 
premises composing the time-share license.  A certificate of the fact and time of the 
entry must be made, signed and sworn to by the witnesses before a notary public or 
an attorney.  The certificate must be recorded in each registry of deeds in which the 
mortgage is or by law ought to be recorded, within 30 days after the entry is made.  
Possession obtained in this manner and continued for one year forever extinguishes 
the right of redemption. 
SUMMARY 
This bill provides an alternative to existing law for foreclosing time-share liens and 
mortgages.  The bill allows the mortgagee or lienholder to foreclose the mortgage or lien 
by entry, if not opposed.  The entry must be peaceable and must be in the presence of 2 
witnesses.  The notarized certificate of fact of the entry, signed by the witnesses, must be 
recorded in the registry of deeds.  Possession obtained in this manner and continued for 
one year extinguishes the right of redemption.