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STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-FOUR
_____
H.P. 1452 - L.D. 2262
An Act to Amend the Process for the Sale of Foreclosed Properties Due to
Nonpayment of Taxes
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 14 MRSA §4422, sub-§1, ¶C, as amended by PL 2021, c. 382, §2, is further
amended to read:
C. That portion 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 ¶, 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:
STATE OF MAINE
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:
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.
APPROVED
APRIL 16, 2024
BY GOVERNOR
CHAPTER
640
PUBLIC LAW Page 2 - 131LR3134(03)
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 former owner of the right to
require the municipality to use the sale process under subsection 3. For the purpose of this
section, "former owner" means the owner or owners of record at the time of foreclosure or,
if deceased, the former owner's heirs, devisees or personal representatives. The notice must
be sent by United States Postal Service certified mail, return receipt requested, and first-
class mail to the last known address of the former owner 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.
through the tax lien mortgage foreclosure process under sections 942 and 943 or sections
1281 and 1282.
2. Notification; appeal.
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 require 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.
90 days after the notification in subsection 2 that the sale process of this subsection be used
When selling a tax-acquired property, the municipal officers or their designee shall:
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 32, chapter 114
who does not hold an elected or appointed office in the municipality and is not
employed by the municipality; Page 3 - 131LR3134(03)
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 at which the property is
anticipated by the real estate broker to sell within 6 12 months after listing; and
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 or, maintaining or
improving the property, including, but not limited to, an administrative fee equal
to 10% of the property taxes owed 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 municipality.; 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 municipal officers are unable to list or sell the property under the requirements of
paragraphs A and B, or if the property tax payer does not request that the property be sold
according to the sale process in this subsection, the municipal officers may sell the property
in any manner authorized by the municipality's legislative body, if the municipal officers
pay the former owner any excess sale proceeds as calculated in paragraph C.
4-A. Effect of inability to contract or sell property.
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.
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.
6. Quitclaim deed and waiver Waiver of former owner. As a condition of
disbursement of excess sale proceeds to the former owner under subsection 3, paragraph
C, the municipal officers may require the former owner to execute a quitclaim deed without
covenant conveying any interest of the former owner in the property to the municipality
and to deliver that deed before conveyance by the municipality to the buyer. Receipt of Page 4 - 131LR3134(03)
such 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.
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.
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 known 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 8, 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.
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.
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
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. Page 5 - 131LR3134(03)
The State Tax Assessor shall prescribe the form of the notice to be used by municipalities
under this subsection.