APPROVED CHAPTER
JUNE 23, 2023 290
BY GOVERNOR PUBLIC LAW
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-THREE
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H.P. 831 - L.D. 1306
An Act to Protect Homeowners from Unfair Agreements to Exclusively List
Residential Real Estate for Sale
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 32 MRSA §13177-B is enacted to read:
§13177-B. Unfair agreements to list residential real estate
1. Definitions. As used in this section, unless the context otherwise indicates, the
following terms have the following meanings.
A. "Long-term agreement" means a contract or agreement between a provider and an
owner under which:
(1) The owner agrees to list the owner's residential real estate for sale with the
provider at a future date; and
(2) Any portion of the real estate brokerage service to be provided under the
contract or agreement by the provider may be performed more than 2 years after
the date the contract or agreement becomes effective.
B. "Owner" means an owner of an interest in residential real estate.
C. "Provider" means a person or entity providing or offering to provide real estate
brokerage services.
D. "Recording" means presenting a document to a register of deeds for official
placement in the records of the registry of deeds.
E. "Residential real estate" means real estate consisting of not less than one nor more
than 4 residential dwelling units.
2. Prohibited agreements. A provider may not enter into or offer to enter into a
long-term agreement that purports to:
A. Bind any future owner not a party to the long-term agreement;
B. Allow for the assignment by the provider of a real estate brokerage service to a 3rd
party without notice to or consent of the owner;
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C. Create a lien, encumbrance or other real property security interest; or
D. Obligate the owner to pay a fee or commission to the provider upon a sale or transfer
of the residential real estate when the sale or transfer is not the result of a real estate
brokerage service provided by the provider.
3. Unfair trade practice. A violation of subsection 2 is a violation of the Maine
Unfair Trade Practices Act.
4. Unenforceable; recording prohibited. A long-term agreement in violation of
subsection 2 is unenforceable. A person may not record or cause to be recorded a long-term
agreement in violation of subsection 2. A long-term agreement in violation of subsection 2
recorded in the State does not provide actual or constructive notice against an otherwise
bona fide purchaser or creditor. If a long-term agreement is recorded in violation of this
subsection, a party with an interest in the residential real estate that is the subject of that
long-term agreement may apply to a District Court or Superior Court in the county where
the recording occurred for an order declaring the long-term agreement void and of no effect.
5. Rights of recovery. If a long-term agreement is recorded in violation of subsection
4, a party with an interest in the residential real estate that is the subject of the long-term
agreement may recover actual damages, costs and attorney's fees as may be proven against
the party who recorded that long-term agreement.
6. Mechanic's lien. Nothing in this section affects a lien on residential real estate
established under Title 10, section 3251.
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