State Agencies Highlight New Maine Law Intended to
Protect Real Estate Buyers and Sellers
AUGUSTA, MAINE – State officials have announced that a new law (effective June 30 th) protects the buyers and sellers of real estate in Maine by raising awareness about tax obligations when property is purchased or sold.
Because of concerns raised by property owners and municipal officials, a State law was enacted this year to highlight the fact that payment of property taxes is the legal obligation of the person who owns a piece of property on April 1st each year—even if that individual is no longer the owner on the subsequent tax due date.
Representatives of the Bureau of Consumer Credit Protection and Maine Revenue Services explained that if a new owner fails to pay property taxes when they are due, then the municipality files a tax lien. However, the lien is filed in the name of the owner of record as of the previous April 1 st, even though that individual no longer owns the property. This lien can negatively affect the seller’s credit report.
“Buyers and sellers of real estate must be aware of their property tax obligations,” commented William N. Lund, Superintendent of the Bureau of Consumer Credit Protection. “This new law will raise awareness of the issue, and will also provide a legal remedy in cases in which buyers and sellers either don’t understand their responsibilities or intentionally ignore them.” Read more information about Maine Real Estate Laws.
