Maine Real Estate Contract: Different Types and Key Terms to Include

What is a Maine Real Estate Contract?

A real estate contract in Maine is an agreement made between a buyer and seller for the transfer of real property. These contracts are most often used when one party, the buyer, is purchasing residential real estate from another party, the seller.

A real estate contract, often called a purchase and sale agreement, will include specific details about the transaction like the purchase price, a description of the property, and a closing date with associated costs. The contract will also include contingencies and disclosures that both parties must abide by to move forward with the sale.

Common Maine Real Estate Contracts

There are several types of real estate contracts that can be used in Maine. Each contract will have a different purpose depending on the type of property being purchased. These contracts include:

• Residential purchase and sale agreement. A residential purchase and sale agreement is the standard real estate contract used for the transfer of residential property in Maine.
• Real estate assignment contract. A contract used when purchasing investment properties that may require maintenance and repairs. This contract allows the buyer to assign the contract to a second buyer.
• Lease agreement. Used when a landlord wants maintain ownership of their property, but allow a tenant to use it in exchange for a monthly rent.
• Commercial property purchase agreement. Used when buying or selling a commercial property that is zoned for business purposes.

4 Essential Elements of a Maine Real Estate Contract

All real estate contracts in Maine must be in writing. In addition, the following 4 essential elements are required by Maine state laws to make the contract legally binding:

1. Identify the parties included in the contract
2. Contain the terms of the sale
3. Contain the date of the transaction
4. Be signed by all parties

What Should Be Included in a Maine Real Estate Contract?

A real estate agent in Maine will often use a state approved form for a real estate contract. This ensures that the contract contains all legally necessary information to facilitate the sale.

When a buyer doesn’t use a realtor, they have the option to hire an attorney to draft a real estate contract. Whether a form is used, or a new agreement is drafted, all real estate contracts should include the following clauses:

• The legal description and address of the property being sold
• The purchase price and terms of payment
• The closing date, which is the date when the buyer will take possession of the property
• Any warranties or representations made by the seller about the property, such as the condition of the roof or the presence of any known defects
• Contingencies or conditions that must be met before the sale can be finalized, such as the buyer obtaining financing or the seller passing a property inspection
• The rights and responsibilities of the parties involved in the transaction, including the buyer's and seller's obligations to complete the sale
• The names and contact information of the parties involved in the transaction, including the real estate agents or brokers representing the buyer and seller

Additional terms and conditions may be included in the contract based on the specific circumstances of the transaction.

Does Maine Require a Real Estate Closing Attorney?

Maine no longer requires that a real estate closing attorney be used when purchasing property. However, it is common for buyers and sellers to use attorneys to assist with the legal aspects of a real estate transaction. An attorney can review and explain the real estate contract, assist with the transfer of title, and handle the closing process.