ME Real Estate key terms

The state agency within the Department of Professional and Financial Regulation that licenses brokers and sales agents, adopts rules, investigates complaints, and imposes discipline for violations of Maine real estate licensing law.

Maine's entry-level real estate license, held by a person who performs brokerage services only while affiliated with a licensed brokerage firm and under the supervision of that firm's designated broker.

A person who holds a Maine broker license but practices under another firm's designated broker instead of running an independent office, and who may supervise licensees when the firm authorizes it.

The individual broker a firm names to the Commission as the person responsible for the office's operations, supervision of affiliated licensees, handling of trust funds, and compliance with license law.

A person who supports a licensee with clerical, administrative, or delivery tasks but may not perform brokerage activities such as showing property, quoting prices, or negotiating contract terms.

A consensual relationship in which a licensee acts on behalf of a client, with the client's authority, and owes that client the fiduciary duties defined by statute and by their agreement.

A party to a transaction whom a licensee assists honestly and with disclosure of material facts but does not represent; no fiduciary duties of loyalty or obedience are owed to that party.

The core obligations an agent owes a client, typically care, obedience, loyalty, disclosure, accounting, and confidentiality, which cannot be set aside without the client's informed consent.

A licensee's duty to promptly disclose known facts that could reasonably affect a party's decision, such as structural defects, water problems, or unusual seller motivation, to all affected parties.

Representation of both buyer and seller in the same transaction by the same firm; in Maine it requires the parties' written informed consent and limits how strongly the firm may advocate for either side.

A written notice a licensee gives a consumer explaining whom the licensee represents, the types of agency available, and how the brokerage expects to be paid for its services.

A written contract in which a buyer hires a broker for a stated period and territory, setting out compensation, duties, and often creating an exclusive relationship with that buyer.

A listing agreement that entitles the broker to a commission no matter who procures the buyer, including the owner; it is the strongest listing arrangement for the broker.

The most complete ownership interest in real property, of potentially unlimited duration, freely transferable and inheritable, and subject only to government powers such as taxation and police regulation.

An ownership interest lasting only for the lifetime of a named person; the holder may use the property but cannot permanently diminish it, and the interest ends at that person's death.

A nonpossessory right to use another person's land for a limited purpose, such as a driveway or utility line, which runs with the land and may be created by deed, implication, or prescription.

A deed containing the grantor's promises to defend title against claims, together with covenants of title; it gives a Maine buyer the broadest protection a seller can provide.

A deed that transfers whatever interest the grantor may hold without any promise about the quality of title, commonly used in family transfers and to clear title defects.

A statutory claim filed by a contractor, subcontractor, or supplier who was not paid for labor or materials that improved real property; it can cloud title and must be resolved at closing.

An item of personal property that has become attached to and part of the realty, judged by the method of attachment, adaptation to the property, and the parties' intent; fixtures pass with the land.

The contract stating the price, closing date, property description, contingencies, and other terms under which a buyer will acquire real property; it follows offer and acceptance.

A buyer's deposit delivered with or shortly after an offer, held in trust, demonstrating good faith and giving the seller a remedy if the buyer defaults without a valid excuse.

A contract condition that must be satisfied or waived before closing, such as financing, inspection, or sale of the buyer's current home, or the parties may cancel without breach.

The final transaction step in which documents are signed, funds are disbursed, the deed is delivered and recorded, and ownership passes from seller to buyer.

A written instrument that pledges real property as security for a debt, giving the lender a lien the lender may enforce through foreclosure if the borrower defaults.

The borrower's written promise to repay a loan on stated terms, including principal, interest, and payment schedule; it is the evidence of the debt that the mortgage secures.

The four components of a typical monthly housing payment: principal, interest, property taxes, and homeowners insurance; lenders use it to gauge a borrower's payment capacity.

The loan amount divided by the appraised value or purchase price, whichever is lower, expressed as a percentage; higher ratios generally require mortgage insurance.

A one-time policy protecting an owner or lender against losses from title defects existing before the policy date, such as forged deeds, undisclosed liens, or recording errors.

A licensee's estimate of a property's likely sale price based on recently sold, active, and pending comparable properties; it is an opinion of price, not an appraisal.

A valuation method that estimates value by adjusting the sale prices of similar properties for differences in size, condition, location, and features.

Maine's civil rights law prohibiting discrimination in housing and other areas based on protected characteristics such as race, color, sex, disability, familial status, religion, ancestry, and sexual orientation.

An illegal practice of persuading owners to sell by suggesting that members of a protected class are moving into the neighborhood and will cause property values to fall.

A required form on which a Maine residential seller reports known defects and conditions; it must reach the buyer before the buyer is bound to purchase and does not replace an inspection.

Maine's mandatory municipal rules for land near lakes, rivers, wetlands, and coastal waters, limiting clearing, setbacks, and development within set distances of the water.

A federal requirement that sellers and landlords of housing built before 1978 disclose known lead paint hazards and give buyers or tenants the EPA pamphlet and a chance to inspect.

Illegally mixing client money, such as earnest money or rents, with a licensee's or firm's own funds; client money must be kept in a properly maintained trust account.

The licensee whose efforts started or produced an uninterrupted series of events leading to a completed transaction, used to decide who earns a commission when brokers dispute.

Professional liability coverage that defends and pays claims alleging a licensee's negligent acts, mistakes, or omissions while providing brokerage services.

A state tax on transfers of Maine real property by deed, computed on the declared value of the property and reported to Maine Revenue Services; the cost is commonly divided between buyer and seller by agreement.