An Act Regarding Disclosure of Flood Risk by Sellers of Real Estate
Maine Legislature, Session 131, LD 2035
Committee: Judiciary
Sponsors: BRENNER
Amends: 33 MRSA §173, 33 MRSA §193, 33 MRSA §194

Legislative Document
No. 2035
S.P. 863
In Senate, December 13, 2023
An Act Regarding Disclosure of Flood Risk by Sellers of Real Estate
Submitted by the Department of Agriculture, Conservation and Forestry pursuant to Joint 
Rule 203.
Received by the Secretary of the Senate on December 11, 2023.  Referred to the Committee 
on Judiciary pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BRENNER of Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  33 MRSA §173, sub-§5, as amended by PL 2017, c. 181, §2, is further 
amended to read:
5.  Known defects.  Any known defects; and
Sec. 2.  33 MRSA §173, sub-§6, ¶B, as enacted by PL 2017, c. 181, §3, is amended 
to read:
B.  Any means other than a public way, in which case the seller shall disclose 
information about who is responsible for maintenance of the means of access, including 
any responsible road association, if known by the seller.; and
Sec. 3.  33 MRSA §173, sub-§7 is enacted to read:
7.  Flood hazard.  Information regarding potential flood risks, including:
A. Whether, at the time the seller provides the information to the purchaser, the 
property is located wholly or partly within an area of special flood hazard mapped on 
a flood insurance rate map issued by the Federal Emergency Management Agency on 
or after March 4, 2002; the federally designated flood zone for the property indicated 
on that flood insurance rate map; and a copy of the relevant panel of that flood 
insurance rate map.  For the purposes of this paragraph, "area of special flood hazard" 
has the same meaning as in Title 38, section 436-A, subsection 1-C;
B. Whether there is an active flood insurance policy for a structure on the property and, 
if there is an active flood insurance policy, the annual cost of flood insurance premiums 
for the structure; and
C. Whether, during the time that the prospective seller has owned the property:
(1) Any flood events affected the property or a structure on the property;
(2) Any flood-related damage to a structure occurred on the property;
(3) Any flood insurance claims were filed for a structure on the property and, if so, 
the date and amount of each claim; and
(4) Any past disaster-related aid was provided related to the property or a structure 
on the property from federal, state or local sources for the purposes of flood 
recovery and, if so, the date and amount of each payment.
Sec. 4.  33 MRSA §193, sub-§3, ¶B, as enacted by PL 2019, c. 142, §2, is amended 
to read:
B.  Any means other than a public way, in which case the seller shall disclose 
information about who is responsible for maintenance of the means of access, including 
any responsible road association, if known by the seller.; and
Sec. 5.  33 MRSA §193, sub-§4 is enacted to read:
4.  Flood hazard.  Information regarding potential flood risks, including:
A. Whether, at the time the seller provides the information to the purchaser, the 
property is located wholly or partly within an area of special flood hazard mapped on 
a flood insurance rate map issued by the Federal Emergency Management Agency on 
or after March 4, 2002; the federally designated flood zone for the property indicated 
on that flood insurance rate map; and a copy of the relevant panel of that flood 
insurance rate map. For the purposes of this paragraph, "area of special flood hazard" 
has the same meaning as in Title 38, section 436-A, subsection 1-C;
B. Whether there is an active flood insurance policy for a structure on the property and, 
if there is an active flood insurance policy, the annual cost of flood insurance premiums 
for the structure; and
C. Whether, during the time that the prospective seller has owned the property:
(1) Any flood events affected the property or a structure on the property;
(2) Any flood-related damage to a structure occurred on the property;
(3) Any flood insurance claims were filed for a structure on the property and, if so, 
the date and amount of each claim; and
(4) Any past disaster-related aid was provided related to the property or a structure 
on the property from federal, state or local sources for the purposes of flood 
recovery and, if so, the date and amount of each payment.
Sec. 6.  33 MRSA §194 is enacted to read:
§194.  Delivery and time of disclosure; cancellation of contract
1. Definition. As used in this section, "flood risk disclosure statement" means a 
statement containing, at minimum, the information required by section 193, subsection 4.
2. Delivery and time of disclosure. The seller of nonresidential real property under 
this subchapter shall deliver or cause to be delivered a flood risk disclosure statement to 
the purchaser no later than the time the purchaser makes an offer to purchase, exchange or 
option the property or exercises an option to purchase the property pursuant to a lease with 
an option to purchase.
3. Terminate contract. If the seller does not deliver or cause to be delivered a flood 
risk disclosure statement to the purchaser before the purchaser makes an offer or exercises 
an option in accordance with subsection 2, the purchaser may terminate any resulting real 
estate contract or withdraw the offer within 72 hours after receipt of the flood risk 
disclosure statement.
4. Withdrawal without penalty. If the purchaser terminates a real estate contract or 
withdraws an offer pursuant to this section, the termination or withdrawal is without 
penalty to the purchaser and the seller shall promptly return to the purchaser any deposits 
made by the purchaser.
5. Rights waived. Any rights of the purchaser to terminate a real estate contract 
provided by this section are waived conclusively if not exercised prior to settlement or 
occupancy, whichever is earlier, by the purchaser in the case of a sale or exchange, or prior 
to settlement in the case of a purchase pursuant to a lease with an option to purchase. Any 
rights of the purchaser to terminate a real estate contract for reasons other than those set 
forth in this section are not affected by this section.
6. Invalidated. A transfer subject to this subchapter is not invalidated solely because 
of the failure of any person to comply with this subchapter.
SUMMARY
This bill requires sellers of residential and nonresidential real property to notify 
prospective buyers in writing of whether the property is in an area of special flood hazard 
mapped on a flood insurance rate map issued by the Federal Emergency Management 
Agency, the presence and cost of any active flood insurance policy for the property, any 
previous flood damage incurred, any flood insurance claims filed and any flood-related 
disaster aid received while the prospective seller owned the property.  The bill includes 
provisions for nonresidential real property regarding the delivery and timing of the flood 
risk disclosure and provisions regarding contract termination; these provisions are similar 
to current law concerning residential real property disclosures.