State guide

Buying or Selling a Home in Maine: What You Need to Know

Maine real estate is shaped by older housing stock, lots of waterfront and rural property, and strong consumer disclosure laws.

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TL;DR

Maine real estate is shaped by older housing stock, lots of waterfront and rural property, and strong consumer disclosure laws. Sellers must fill out a state Property Disclosure Statement covering everything from septic systems to oil tanks to shoreland zoning. Closings are run by title companies but a Maine attorney must prepare the deed, and both buyer and seller split a small transfer tax at the table.

10 things every Maine buyer or seller should know

  • Maine sellers of homes with up to four units must give buyers a written Property Disclosure Statement before the buyer signs a purchase and sale agreement. The form covers structural issues, heating, water, sewer, environmental hazards, and known defects, and the seller has to complete it in good faith.

  • Maine charges a real estate transfer tax of $2.20 per $500 of the sale price, and the tax is split evenly between buyer and seller — so each side pays $1.10 per $500. On a $400,000 home that works out to about $880 each at closing.

  • Maine closings are run by a title company, but a licensed Maine attorney must prepare or supervise the deed, mortgage, and other documents that transfer the property. Buyers and sellers don't have to hire their own attorneys, but the legal work itself can't be done by a non-lawyer.

  • Since August 17, 2024, NAR's settlement rules require Maine agents who represent buyers to have a signed written buyer brokerage agreement before showing any MLS-listed home. The agreement has to spell out a specific compensation amount or rate — vague language like "to be determined" is not allowed.

  • Maine sellers must disclose if a property sits within a shoreland zone — generally within 250 feet of a great pond, river, or saltwater body, or within 75 feet of certain streams and wetlands. Shoreland status limits clearing, building, and additions, so it directly affects what an owner can do with the land.

  • Heating oil tanks are common in Maine, and sellers must disclose any known above-ground or underground oil tanks and any known contamination. Cleanup of a leaking underground tank in Maine commonly runs from $15,000 to well over $100,000, so this is a major item to flag honestly on the Property Disclosure Statement.

  • If a seller is not a Maine resident, Maine collects a 2.5% real estate withholding on the total sale price at closing as a prepayment of state income tax. It's not an extra tax — it's credited back when the seller files a Maine return — but it does reduce the cash the seller walks away with on closing day.

  • The Maine Human Rights Act protects more groups in housing than federal fair housing law alone. On top of the federal categories, Maine adds sexual orientation, gender identity, and ancestry, so agents, landlords, and sellers cannot treat people differently based on those traits.

  • After the NAR settlement, Maine MLS systems can no longer display offers of buyer-agent compensation in listings. Sellers can still agree to cover a buyer's agent fee, but that has to be negotiated off-MLS or written directly into the purchase contract.

  • Because much of Maine's housing in cities like Portland, Lewiston, and Bangor was built before 1978, the federal lead-based paint disclosure rule comes up often. Sellers of pre-1978 homes must share what they know about lead paint, hand over any reports, and give buyers the EPA "Protect Your Family from Lead in Your Home" pamphlet.

The guides

Common questions

Do I need a lawyer to close on a home in Maine?
Most Maine closings are run by a title company, not a lawyer's office, so buyers and sellers usually don't hire their own attorney. However, a licensed Maine attorney must prepare or supervise the deed and mortgage documents — that legal work can't be done by the title company alone. You can still bring in your own attorney if you want extra review of the contract.
What does a Maine seller actually have to tell me about the house?
Maine sellers fill out a Property Disclosure Statement that covers known issues with the roof, foundation, heating, plumbing, electrical, water supply, septic or sewer, and environmental hazards like asbestos, radon, lead paint, and oil tanks. They also flag shoreland zoning and other known material conditions. You should get this form before signing the purchase and sale agreement, so read it carefully.
Who pays the transfer tax when a Maine home sells?
Maine's transfer tax is $2.20 per $500 of the sale price and is split evenly — buyer and seller each pay $1.10 per $500. On a $400,000 sale, that's about $880 for each side. The Real Estate Transfer Tax Declaration is filed at closing as part of the standard paperwork.
Why does my Maine buyer's agent want me to sign an agreement before showing homes?
Maine law and the August 2024 NAR settlement both require a signed written buyer brokerage agreement before an agent can show you MLS-listed property. The agreement must list a specific compensation amount or rate, the time period it covers, and the area or property type. You can negotiate the fee and the length of the contract before you sign.
Can a Maine listing advertise what it will pay the buyer's agent?
No. Since August 17, 2024, Maine MLS systems affiliated with NAR cannot show offers of buyer-agent compensation inside the listing. Sellers can still agree to cover the buyer's agent fee, but that is now negotiated off-MLS or written into the purchase contract.
I live out of state — what happens when I sell my Maine property?
Maine requires a 2.5% withholding on the total sale price when the seller is not a Maine resident, under 36 MRSA §5250-A. The money goes to Maine Revenue Services and is credited toward your Maine income tax when you file. If you're also a foreign person under FIRPTA, the IRS may withhold a separate 15% on top of that — they are independent rules with different payees.
What if my Maine home has an underground oil tank — do I have to say so?
Yes. Maine's Property Disclosure Statement asks about known oil tanks, above-ground and below-ground, and any known contamination. Saying "no known issue" when you've been told there's a leak is misrepresentation, and remediation of a leaking underground tank in Maine often runs from $15,000 to well over $100,000.
How do I find out if a Maine home is in a flood or shoreland zone?
Sellers must disclose known flood zone status and shoreland zoning on the Maine Property Disclosure Statement. You can also check FEMA's Flood Map Service Center yourself by address to confirm the federal flood zone. If the property is in a Special Flood Hazard Area, a federally backed lender will require flood insurance before they close the loan.
Does my Maine agent have to tell me if a sex offender lives nearby?
No. Maine treats the public sex offender registry as the disclosure mechanism, so agents and sellers don't have an affirmative duty to volunteer that information. You can search the Maine State Police registry yourself by name or address. Agents are actually warned against proactively pointing out specific offenders because it can raise fair-housing steering concerns.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.