Maine

Maine is an attorney-customary closing state with attorney involvement on most residential transactions. The closing professional is typically an attorney; title companies handle title insurance. The Maine Realtors publish standard purchase contracts used in most transactions.

Real Estate Transfer Tax, split structure

Maine's Real Estate Transfer Tax (RETT) is split equally between buyer and seller:

Combined burden of 0.88% of sale price. On a $400,000 sale, each side pays roughly $1,760 in RETT. The split structure resembles New Hampshire's, but at lower rates.

What buyers should know

Maine's standard purchase contract gives buyers explicit contingency periods. Inspection contingencies typically run 10–14 days; financing contingencies run 30–45 days.

Title insurance in Maine is not state-promulgated. Lender's policy is required (buyer customarily pays); owner's policy customarily paid by the buyer.

Property tax in Maine runs roughly 1.2%–1.4% of market value statewide. Maine offers the Homestead Exemption ($25,000 reduction in taxable value for primary residences), the Veterans Exemption, and a circuit-breaker property-tax fairness credit for income-eligible homeowners.

Coastal and lake-frontage properties dominate much of Maine's residential market. Properties on the Atlantic coast (Casco Bay, Penobscot Bay, Down East) and on inland lakes (Sebago, Moosehead, Rangeley) carry shoreland-zoning rules under Maine's Mandatory Shoreland Zoning Act. Setback restrictions, dock permits, and lake-frontage development limits warrant local-agent expertise.

The buyer-broker agreement (post-2024 NAR settlement) is required before showings.

What sellers should know

Maine seller closing costs are moderate. On a $400,000 sale: 5–6% commission ($20,000–$24,000), 0.44% RETT seller portion ($1,760), attorney fees $750–$1,500, $1,000–$1,500 title insurance share, remaining items. Total seller closing costs typically run 7–8.5% of sale price.

Capital gains in Maine are taxed at graduated rates (top bracket 7.15%). Combined with federal long-term cap gains and the 3.8% NIIT for higher earners, sellers above the federal § 121 exclusion face combined effective rates of 24–31%.

The Maine Property Disclosure Form is the standard form covering known defects, including specific items for shoreland properties (Mandatory Shoreland Zoning compliance), well/septic status, and underground oil-tank disclosure (common in older Maine homes).

Hot markets

Portland (Cumberland County) and the Greater Portland area drive the bulk of southern Maine transaction volume. Portland has had sustained appreciation driven by tech employment and remote-work in-migration. Bangor (Penobscot County), the midcoast (Lincoln, Knox, Waldo counties), and the Bar Harbor / Acadia area (Hancock County) are secondary markets with seasonal/tourism dynamics. Rural northern Maine has very different dynamics with low-volume markets and forestry / outdoor-recreation property characteristics.

Septic, oil tanks, and shoreland zoning

Maine's residential market carries three property-condition concerns that warrant specific buyer attention.

Septic systems are nearly universal outside the larger municipalities. The state's Subsurface Wastewater Disposal Rules require a septic inspection at sale on most rural properties; failures can require a costly system replacement (often $15,000–$30,000) before closing or as a contract negotiation point. Buyers should make any septic-system disclosure and inspection a contingency, separate from the general home inspection.

Underground oil tanks are common on older Maine homes, a legacy of mid-20th-century heating oil installations. The state's underground storage tank rules require specific disclosure, and buried tanks (especially those over 25 years old or showing signs of corrosion) create substantial environmental liability. A pre-purchase tank inspection by a licensed contractor is standard practice on any home with a buried tank, and removal or abatement before closing is often negotiated.

Shoreland zoning under the Mandatory Shoreland Zoning Act applies to properties within 250 feet of great ponds, rivers, and the ocean. Setback restrictions, vegetation-clearing limits, and dock or pier permit requirements vary by municipality and water-body classification. The shoreland zoning compliance disclosure on the standard form catches obvious issues, but local-zoning-officer review is the only way to confirm a planned addition or deck won't run afoul of setback rules.

How closing typically works

Closing happens at the attorney's office. The attorney prepares the deed and supervises signing; the buyer signs loan documents; funds wire from the lender to the attorney's trust account; the deed records at the county Registry of Deeds.

Total time from contract signing to recorded deed runs 45–60 days for financed transactions in Maine.

For coastal / lake-frontage transactions specifically, properties with shoreland zoning considerations, or any property with underground oil-tank disclosure, a Maine real estate attorney with local expertise is the right professional.