An Act To Increase Protections for Land Installment Contracts
Maine Legislature, Session 129, LD 1426
Committee Amendment CA_A_H582 (House)
Amends: 33 MRSA §481, 33 MRSA §482

COMMITTEE AMENI>MENT "A" to H.P. 1039, L.I>. 1426, Bill, "An Act To 
Increase Protections for Land Installment Contracts" 
Amend the bill by striking out all of section 2 and inserting the following: 
'Sec. 2. 33 MRSA §481, sub-§2, as enacted by PL 1983, c. 368, is repealed and 
the following enacted in its place: 
2. Land installment contract. "Land installment contract" means an agreement 
under which the vendor agrees to sell an interest in real property to the purchaser and the 
purchaser agrees to pay the purchase price in 5 or more subsequent payments exclusive of 
the down payment. if any, and the vendor retains title to the real property as security for 
the purchaser's obligation under the agreement. Land installment contracts include: 
A. A bond for deed and a contract for the sale ofreal estate that meets the criteria set 
forth in this subsection: and 
B. 
Option contracts for the purchase of real property. an agreement for the 
occupancy of residential real estate in which the occupant is required to make an 
initial payment in excess of 4 times the periodic monthly payments required to 
occupy the premises and any agreement in which a person is induced to occupy a 
property as a primary residence by a promise or offer to grant ownership of the 
property to the person at a future date. 
Land installment contracts do not include purchase and sale agreements entered into with 
the good faith expectation of a separate transaction in which the parties agree that the 
purchase price will be paid in a single installment, either through a cash sale or when a 
3rd party or the vendor agrees to finance the transaction.' 
Amend the bill by striking out all of sections 5 and 6 and inserting the following: 
'Sec. 5. 33 MRSA §482, sub-§2, as enacted by PL 1983, c. 368, is amended to 
read: 
2. Recordation. Within 20 days after the contract has been signed by both the 
vendor and the purchaser, the vendor shall cause a copy of the contract or a memorandum 
COMMITTEE AMENDMENT 
R OF S COMMITTEEAMENDMENT"A"toH.P.1039,L.D.1426 
of the contract to be recorded at the purchaser's expense in the registry of deeds in the 
county where the real property sold under the contract is located. If a memorandum of 
the contract is recorded, it shall must be entitled "Memorandum of a Land Installment 
Contract" and shall must contain, as at a minimum, the names of the parties, the 
signatures of the parties, a description of the real property and applicable time periods. A 
person other than a vendor and purchaser may rely on the recorded materials in 
determining whether the requirements of this subsection have been met. If a contract is 
not recorded pursuant to this subsection. the vendor may not enforce the contract. The 
recordation requirement of this subsection does not apply to purchase and sale 
agreements exempt from the defmition of "land installment contract" pursuant to section 
481. subsection 2 or option-to-buy contracts exempt from the defmition of "land 
installment contract" pursuant to section 481. subsection 2. 
Sec. 6, 33 MRSA §482, sub-§§4, 5 and 6 are enacted to read: 
4. Option contracts. In any contract under section 481. subsection 2, paragraph B, 
the parties may agree that the relationship between the vendor and purchaser is subject to 
the provisions of Title 14. chapters 709. 710 and 710-A. The agreement must be in 
writing and must contain a written agreement whereby. in the event of any default by the 
purchaser. the vendor will return to the purchaser: 
A. Any initial payment made by the purchaser in excess of 4 times the periodic 
monthly payment: 
B. The value of any improvements to the real estate made by the purchaser necessary 
to bring the real estate into compliance with Title 14. sections 6021 and 6021-A: 
C. The value of any other improvements made to the real estate by the purchaser in 
excess of the amount of one monthly payment: 
D. Property taxes paid by the purchaser: 
E. Payments of homeowner's insurance paid by the purchaser; and 
F. 
Reimbursements by the purchaser to the vendor of homeowner's insurance, 
property taxes or improvements set forth in paragraphs B and C. 
The vendor may not maintain an eviction action pursuant to Title 14. section 6001 against 
the purchaser until the vendor has returned to the purchaser the sums set forth in this 
subsection. In addition to returning any payments made under this subsection. the vendor 
shall also return any additional security deposit to the purchaser in accordance with Title 
14. section 6033. 
5. Vendor is creditor. A vendor in a land installment contract is a creditor under 
Title 9-A. section 1-301. subsection 17. except that an individual who engages in no more 
than one such transaction per year may not be considered a creditor for purposes of Title 
9-A. section 1-301. subsection 17. 
· 
6. Violations. A violation of this chapter is a violation of the Maine Unfair Trade 
Practices Act. In addition to any other rights and remedies a purchaser may have in the 
law. upon a fmding that a violation of this chapter by a vendor has occurred. a court shall 
find one or both of the following: 
COMMITTEE AMENDMENT 
D "'),- 0 
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r,, t r~ ~JCOMMITTEE AMENDMENT " f 1" to H.P, 1039, L.D. 1426 
A. The purchaser is entitled to recover all actual damages or $1.000. whichever is 
greater: and 
B. The purchaser is entitled to recover the aggregate amount of costs. expenses and 
attorney's fees detennined by the court to have reasonably been incurred on the 
purchaser's behalf in connection with the prosecution or defense of the matter.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment is the majority report of the Joint Standing Committee on Judiciary. 
It amends the bill to make clear that the parties to a rent-to-own or option-to-buy contract 
may agree to treat the agreement as a residential lease subject to the rental statutes in the 
Maine Revised Statutes, Title 14, chapters 709, 710 and 710-A; otherwise the residential 
properties foreclosure procedures apply. If the contract is treated as a residential lease 
agreement, the down payment is treated as a security deposit and must be returned when 
the rental ends. 
The bill requires vendors who engage in land installment contracts to be treated as 
creditors under the Maine Consumer Credit Code. The amendment exempts vendors who 
engage in no more than one land installment contract per year. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/25/19 ;ldae!. 
LD 1426 
LR 1767(02) 
An Act To Increase Protections for Land Installment Contracts 
Fiscal Note for Bill as Amended by Committee Amendment fl· ( H-st.:Y 
Committee: Judiciary 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Minor revenue increase - General Fund 
Minor revenue increase - Other Special Revenue Funds 
Correctional and Judicial Impact Statements 
This bill may increase the number of civil suits filed in the court system. 
The additional workload associated with the minimal number of new cases filed in the court system does not require 
additional funding at this time. 
The collection of additional filing fees may increase General Fund and other dedicated revenue by minor amounts. 
Fiscal Detail and Notes 
Any additional costs to the Bureau of Consumer Credit Protection, within the Department of Professional and 
Financial Regulation, ofrequiring vendors who engage in land installment contracts to be treated as creditors under 
the Maine Consumer Code are expected to be minor and can be absorbed within existing budgeted resources. 
Additional revenues collected as a result of annual registration fees for these creditors are expected to be minor. 
LRl 767(02) - Fiscal Note - Page 1 of 1