Notice for Buyers and Sellers

Important Notice About Property Taxes for Buyers and Sellers

Please reference M.R.S. 26, Part 2 Property Taxes § 502

 

  1. Under Maine law payment of property taxes is the responsibility of the person who owns the property on April 1st.
  2. The buyer and seller may agree to divide the taxes between them, but if any part of the taxes is not paid, a lien will be filed in the name of the person who ownerd the property on April 1st.

PLEASE BE AWARE

If you are the seller: Even if you no longer own the property, a lien may have a negative effect on your credit rating.

If you are the buyer: If a lien is filed in the seller's name, the municipality may foreclose on your property unless the taxes are paid.

  1. Municipalities have different fiscal years and tax dues dates.
  2. Make sure you understand the buyer's and seller's obligations with regard to property taxes and what may happen if taxes are not paid as agreed.
  3. If you feel a lien has been filed incorrectly in your name:
    1. Obtain a copy of the lien from the registry of deeds and
    2. Discuss the matter with your municipality.

If your credit report is incorrect, contact the Bureau of Consumer Credit Protection at 1-800-DEBT-LAW to determin what remedies are available to you to correct your credit report.

These potential tax lien problems can be avoided by providing that funds are set aside in escrow at the time of closing to ensure that property taxes will be paid.