An Act t~ Amend the Process for the Sale of Foreclosed Properties Due to Nonpayment of Taxes
Maine Legislature, Session 131, LD 2262
Committee Amendment CA_A_H939 (House)
Amends: 14 MRSA §4422, 36 MRSA §943, 36 MRSA §943-C

COMMITTEE AMENDMENT "~f' to H.P. 1452, L.D. 2262, "An Act t~ Amend the 
Process for the Sale of Foreclosed Properties Due to Nonpayment of Taxes" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 14 MRSA §4422, sub-§1, 1C, as amended by PL 2021, c. 382, §2, is 
further amended to read: 
C. That pmtion of the proceeds from any sale of property or any money returned to 
the former owner of property. pursuant to the provisions of Title 36, section 943-C, 
that is exempt under this section is exempt for a period of 12 months from the date of 
receipt of such proceeds for purposes of reinvesting in a residence within that period. 
Sec. 2. 36 MRSA §943, 6th 1, as amended by PL 2017, c. 288, Pt. A, §41, is further 
amended to read: 
Beginning with taxes that are assessed after April 1, 1985, the notice of impending 
automatic foreclosure must be substantially in the following form: 
NOTICE OF IMPENDING AUTOMATIC FORECLOSURE 
Title 36, M.R.S.A. Section 943 
IMPORTANT: DO NOT DISREGARD 
THIS NOTICE. YOU WILL LOSE 
YOUR PROPERTY UNLESS YOU PAY 
YOUR 20 PROPERTY TAXES, 
INTEREST AND COSTS. 
TO: 
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COMMITTEE AMENDMENT •A "to H.P. 1452, L.D. 2262 
You are the party named on a tax lien certificate filed on 
, 20 , and recorded in 
Book 
, Page 
in the County Registry of Deeds. This filing has created a tax lien 
mortgage on the real estate described therein. 
On 
, 20 , the tax lien mortgage will be foreclosed and your right to recover your 
property by paying the taxes, interest and costs that are owed will expire. 
IF THE TAX LIEN FORECLOSES, 
THE MUNICIPALITY WILL OWN 
YOUR PROPERTY AND MAY SELL IT 
AND RETURN EXCESS SALE PROCEEDS 
TO YOU, IF ANY, PURSUANT TO THE 
MAINE REVISED STATUTES, TITLE 36, SECTION 943-C. 
If you cannot pay the property taxes you owe please contact me to discuss this notice. 
Municipal Treasurer 
Sec. 3. 36 MRSA §943-C, as amended by PL 2023, c. 523, Pt. A, §8, is further 
amended to read: 
§943-C. Sale of foreclosed properties 
Notwithstanding any provision of law to the contrary, after the foreclosure process 
under sections 942 and 943 or sections 1281 and 1282 is completed and the right of 
redemption has expired, if a municipality chooses to sell to someone other than the former 
owner, the municipal officers or their designee shall notify the fofffier owner of the right to 
require the Hlllfl:ieipality to use the sale process under subsection 3. For the purpose of this 
section, "former owner" means the owner or owners ofrecord at the time of foreclosure or, 
if deceased, the former owner's heirs, devisees or personal representatives. The notiee must 
be setrt by United States Postal Serviee eertified mail, return. reeeipt requested, and first 
elass mail to the lastknov,1n address ofthe former ovi1ner and "tax-acquired property" means 
real property taken by a municipality for nonpayment of property taxes. If the municipality 
agrees to sell the property back to the former owner, the alternative sale process under this 
section does not apply. If the sale to the former owner is not completed, the requirements 
of this section are reinstated. 
1-A. Subject property. This section governs the sale of all tax-acquired property 
through the tax lien mortgage foreclosure process under sections 942 and 943 or sections 
1281 and 1282. 
2. Notification; appeal. At least 90 days prior to listing property for sale, the 
municipal officers or their designee shall send a written notice to the last known address of 
the former owner, by United States Postal Service certified mail, return receipt requested, 
and first-class mail, of the right to l'equire the sale process described in subsection 3. The 
State Tax Assessor shall prepare notices that must be used by municipalities to inform 
former owners of their right to apply for the sale process provided under subsection 3. 
3. Sale process requirements. If the former ov,1ner s'l:HJmits a 1.v:ri.tten demand withm 
days after the aotifieation in s'l:HJseetion 2 that the sale proeess of this sabseetion be ased 
When selling a tax-acquired property, the municipal officers or their designee shall: 
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COMMITTEE AMENDMENT •A" to H.P. 1452, L.D, 2262 
A. List the property for sale at the highest reasonable price at which the property is 
anticipated to sell with a real estate broker or agent licensed under Title 3 2, chapter 114 
who does not hold an elected or appointed office in the municipality and is not 
employed by the municipality; 
B. Sell Convey the property via quitclaim deed to the successful buyer at the highest 
price at which the property is able to sell, or the price a-t ,vhieh the property is 
an-tieipated by the real estate broker to sell within~ 12 months after listing; aH4 
C. Pay to the former owner any sale proceeds in excess of: 
(1) The sum of all taxes owed on the property; 
(2) Property The sum of all taxes that would have been assessed on the property 
during the period following foreclosure when the property is owned by the 
municipality; 
(3) All accrued interest; 
(4) Fees, including advertising, mailing, recording, property listing and real estate 
broker's or agent's fees. to the extent that those fees are not included in the broker 
or agent fee agreement; 
(5) Any other expenses incurred by the municipality in selling et',., maintaining or 
improving the property, including, but not limited to, as adm.iBistrative fee equal 
to 10% of the property taues 0•1red documented administrative costs and reasonable 
attorney's fees; 
(6) The cost to the municipality of the lien and foreclosure process, including, but . 
not limited to, reasonable attorney's fees; and 
(7) Unpaid sewer, water or other utility charges and reasonable fees imposed by 
the municipalityT; and 
D. Provide to the former owner a written accounting of the amount of excess sale 
proceeds itemizing any deductions made pursuant to paragraph C, subparagraphs (1) 
to (7) at the former owner's request. 
If the m.1,mieipal offieers are l¾fHtble to list or sell the property 1IBder the requiremeBts of 
paragraphs A asd. B, or if the property tax payer does not request tha-t the property be sold 
aeem·ding to the sale proeess ia this sl¼hseetion, the m1IBieipal offieers may sell the property 
in aay manner aathoriz3ed by the maaieipalifj,'s legislatrre bod.y, if the maaieipal offieers 
pa:y the former ovmer aay exeess sale proeeeds as ealealated iB paragraph C. 
4-A. Effect of inability to contract or sell property. 
If, after 3 attempts, a 
municipality is unable to contract with a real estate broker or agent for the sale of the 
property as described in subsection 3 or the broker or agent is unable to sell the property 
within 12 months after listing. the municipal officers may sell the property in any manner 
authorized by the municipality's legislative body, as long as the municipality pays the 
former owner any excess sale proceeds as calculated in subsection 3. paragraph C. 
5. Property in the unorganized territory. With regard to the sale of property 
acquired by the State through tax lien foreclosure in the unorganized territory, the State 
Tax Assessor has the obligations of a municipality under this section. 
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6. Quitelaim deed and waiveF Waiver of former owner. As a condition of 
disbursomeRt of excess sale proceeds to tho former ovmor unclor subsection 3, paragraph 
C, tho municipal officers may require tho former ovmor to execute a quitclaim deed 1.vithout 
co•,zon!H½t conveying any interest of tho former ovmef in tho propo1ty to the muaicipality 
and to doliv,er that deed before conveyance by tho municipality to tho b'l¼)'ef. Receipt of 
ffi¼Ch. excess sale proceeds by the former owner pursuant to this section is deemed to be a 
waiver of any right of the former owner to commence any action pursuant to section 946-B. 
Failure of a municipality to file the notice required by subsection 11 does not nullify or 
otherwise affect the validity of the waiver under this subsection. This subsection may not 
be construed to prevent the former owner from commencing an action for damages relating 
to the effective conveyance of excess sale proceeds or the amount of excess sale proceeds. 
7, Retention of tax-acquired property. If a municipality chooses to retain a tax-
acquired property for municipal use, the municipality shall procure an appraisal report from 
an appraiser licensed to provide real estate appraisals in this State showing the value of the 
tax-acquired property being retained. The appraiser may not hold an elected or appointed 
office in the municipality or be otherwise employed by the municipality. The municipal 
officers, after providing the notice required by subsection 8, shall pay the former owner 
any excess sale proceeds as calculated in subsection 3, paragraph C, substituting the value 
of the tax-acquired property as shown in the appraisal report. which must be prepared 
within 120 days before the time the excess sale proceeds are paid, for the selling price of 
the tax-acquired property. 
8. Notice of intent to pay excess sale proceeds. If after the sale of a tax-acquired 
property there exist any excess sale proceeds as described in subsection 3, paragraph C, at 
least 30 days prior to disbursement of those excess sale proceeds to the former owner the 
municipal officers shall send written notice of the municipality's intent to pay the former 
owner the excess sale proceeds. The notice must be sent by first-class mail and certified 
mail, return receipt requested, to the last lmown address of the former owner and the last 
known address of each record holder of an interest in the tax-acquired property. This notice 
does not limit the right of a lienholder to pursue any claims to the excess sale proceeds 
against the former owner otherwise available by law. 
9. Notice by publication. If the municipality is unable, after reasonable diligence, to 
locate the former owner of a tax-acquired property in order to send the notice required in 
subsection 81 the municipality, once a week for 3 consecutive weeks, shall place a notice 
in a newspaper of general circulation in the county in which the tax-acquired property is 
located. The notice must include the name of the former owner, a description of the tax-
acquired property that was sold, the amount of the excess sale proceeds and the date by 
which the excess sale proceeds must be claimed. 
10. Transfer of proceeds. If, after provision of notice under subsection 9, a former 
owner fails to claim the excess sale proceeds within 30 days of the final published notice, 
the municipality shall transfer the excess sale proceeds to the Unclaimed Property Fund 
under Title 33, section 2141. 
11. Notice of payment of proceeds. A municipality, within 10 days of payment of 
any excess sale proceeds to the former owner under this section, shall record in the registry 
of deeds of the county or registry district where the tax-acquired property is located a notice 
signed by the municipal officers. The notice must include the name of the former owner 
to whom the excess sale proceeds were paid, the amount of the excess sale proceeds, the 
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COMMITTEE AMENDMENT 'A" to H.P. 1452, L.D. 2262 
date on which the excess sale proceeds were paid to the former owner, a description of the 
tax-acquired property that was sold and a statement that receipt of the excess sale proceeds 
by the former owner is deemed to be a waiver of the former owner's right to commence any 
action challenging the taking pursuant to section 946-B. 
The State Tax Assessor shall prescribe the form of the notice to be used by municipalities 
under this subsection.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment makes changes to the bill to improve the process when a municipality 
sells real property acquired for nonpayment of taxes by the former owner, including: 
1. 
Requiring a notice of impending automatic foreclosure to specify that the 
municipality may sell the property and pay any excess sale proceeds to the former owner; 
2. Allowing municipalities to use an agent as well as a real estate broker in the sale of 
the property; 
3. Increasing from 6 months to 12 months the length of time the property may be listed 
for sale; 
4. Allowing the deduction from the proceeds of the sale fees incurred in selling the 
property but only to the extent those fees are not included in the broker or agent fee 
agreement; 
5. Requiring any fees imposed by a municipality on the property to be reasonable; 
6. Requiring an itemized written account of the deductions from the sale proceeds to 
be provided to the former owner when requested; 
7. Requiring an appraisal report to be prepared within 120 days, if a municipality 
chooses to retain the property; 
8. Specifying that a person receiving the excess sale proceeds waives the right to 
challenge the taking of the property but not the right to commence an action relating to the 
effective conveyance of the excess sale proceeds; and 
9. Providing that, if the former owner of foreclosed property cannot be located for 
distribution of excess amounts, the excess amounts must be turned over to the unclaimed 
property division of the Office of the Treasurer of State. 
COMMITTEE AMENDMENT