An Act to Regulate Shared Appreciation Agreements Relating to
Maine Legislature, Session 132, LD 1901
Sponsors: BELL
Amends: 9-A MRSA §1, 9-A MRSA §3

Legislative Document
No. 1901
H.P. 1272
House of Representatives, May 5, 2025
An Act to Regulate Shared Appreciation Agreements Relating to 
Residential Property
Received by the Clerk of the House on May 1, 2025.  Referred to the Committee on Health 
Coverage, Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered printed 
pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative BELL of Yarmouth.
Cosponsored by Representatives: ARFORD of Brunswick, BRIDGEO of Augusta, PUGH of 
Portland, SATO of Gorham, Senator: TEPLER of Sagadahoc.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  9-A MRSA §1-301, sub-§14, ¶A, as amended by PL 2011, c. 427, Pt. A, 
§3, is further amended by amending subparagraph (3) to read:
(3)  Either the debt is payable in installments or pursuant to a shared appreciation 
agreement or a finance charge is made; and
Sec. 2.  9-A MRSA §1-301, sub-§37-A is enacted to read:
37-A.  "Shared appreciation agreement" means a written agreement with a consumer 
relating to a dwelling or residential real property in which an advance sum of monetary 
value is extended to the consumer, as a lump sum or otherwise, in exchange for a present 
or future legal interest in the dwelling or residential real property or in which a future 
obligation to repay a sum based on the appreciation in value of the dwelling or real property 
upon the occurrence of an event, including, but not limited to, the transfer of ownership, 
repayment maturity date, death of the consumer, sale of the dwelling or real property, 
refinance of the loan or any other event contemplated by the agreement.
Sec. 3.  9-A MRSA §3-317 is enacted to read:
§3-317.  Shared appreciation agreements
1.  A shared appreciation agreement may not:
A.  Create or be used to create a lien against the real property that is the subject of the 
shared appreciation agreement;
B.  Create an obligation that runs with the title to the real property that is the subject of 
the shared appreciation agreement and is not binding or enforceable at law or in equity 
against any subsequent owner, purchaser or mortgagee or holder of any interest in the 
property;
C.  Contain a provision that prevents a consumer who is a party to the shared 
appreciation agreement from renting or using the property as the consumer chooses;
D.  Contain a provision that prevents a consumer who is a party to the shared 
appreciation agreement from refinancing a mortgage or lien against the property that 
is the subject of the shared appreciation agreement;
E.  Contain a provision that permits a party to the shared appreciation agreement 
advancing money to the consumer to enforce any provision of the shared appreciation 
agreement more than 10 years after the date of the shared appreciation agreement;
F.  Contain a provision requiring a consumer who is a party to the shared appreciation 
agreement to pay any closing costs or fees of any description as condition of the 
advancement of money under the shared appreciation agreement;
G.  Contain a provision requiring arbitration of issues arising with respect to the shared 
appreciation agreement;
H.  Include a penalty for satisfying or otherwise terminating the mortgage or loan 
before its scheduled maturity date;
I.  Contain a provision restricting or waiving the substantive or procedural rights or 
remedies at law of a party to the shared appreciation agreement advancing money to a 
consumer who is a party to the shared appreciation agreement; or
J.  Include a confidentiality provision regarding the terms of the loan.
2.  A shared appreciation amount in a shared appreciation agreement may not exceed 
the lesser of:
A.  Any amount paid or to be paid to a consumer who is a party to the shared 
appreciation agreement in connection with the shared appreciation agreement plus the 
interest amount calculated in accordance with section 2-401; and
B.  Two hundred percent of the amount paid to a consumer who is a party to the shared 
appreciation agreement at the time of or in connection with the signing of the shared 
appreciation agreement.
For purposes of this subsection, "shared appreciation amount" means an amount a party to 
a shared appreciation agreement advancing money to a consumer who is a party to the 
shared appreciation agreement is repaid based on the appreciation in value of the property 
that is the subject of the shared appreciation agreement.
3.  A shared appreciation agreement may not be enforced by a party to the shared 
appreciation agreement advancing money to a consumer who is a party to the shared 
appreciation agreement unless:
A.  No less than 30 days before the execution of the shared appreciation agreement, 
that party notifies the consumer that the consumer should obtain the advice of 
independent legal counsel chosen by the consumer;
B.  That party agrees with the consumer in writing to pay the reasonable costs of the 
counsel chosen by the consumer under paragraph A; and
C.  At the time of or before the execution of the shared appreciation agreement, that 
party pays the consumer's reasonable costs of obtaining the advice of the counsel 
chosen by the consumer under paragraph A.
4.  A shared appreciation agreement that violates any provision of this section is 
unenforceable and is a per se violation of the Maine Unfair Trade Practices Act and grounds 
for license revocation by the Department of Professional and Financial Regulation, Bureau 
of Consumer Credit Protection.
SUMMARY
This bill defines "shared appreciation agreement" and provides limitations on and 
requirements for the use of shared appreciation agreements.