When it comes to real estate transactions in Maine, deeds play a crucial role in transferring property ownership. A deed is a real estate document that establishes the rights of the parties involved and ensures a clear record of ownership. Real estate is owned by the person or entity to whom it was granted (the “Buyer”, also referred to as the Grantee).
Real estate rules and regulations are primarily governed by state law. Thus, when you need a real estate transaction for a Maine property, it is strongly recommended that you work with an attorney licensed in the State of Maine. Conversely, a Maine attorney generally should not prepare a deed or offer advice on non-Maine property because he/she is not licensed to practice law in that state.
Every county in Maine has their own Registry of Deeds (Aroostook County actually has two). You can find links to them here: https://www.maineregistryofdeeds.com/. Most can be accessed with view-only privileges as a guest. The Registry is the official holder of all recorded deeds. They work diligently to digitize and cross-reference their documents for the public.
LEGAL REQUIREMENTS FOR DEEDS IN MAINE:
To be legally valid, a deed in Maine must:
- Be in writing and signed by the current owner of the property (the “Seller”, also referred to as the Grantor)
- Include a legal description of the property
- Clearly identify the Seller, the Buyer, and contain a clause transferring the property
- Be notarized to confirm authenticity of Seller as signer
The description in a deed is vitally important, describing exactly where real estate is located and what its boundaries are. Unfortunately, some descriptions are more accurate than others. Sometimes descriptions go back many generations and will reference “the land now or formerly owned by ____”, or can reference landmarks that are no longer there (e.g. an old barn, a large stone, a large spruce tree). Sometimes deed descriptions have typos in them; the generally accepted practice is to continue to carry that error forward in new descriptions since the goal of a deed is to convey exactly what is owned. This can feel vague and uncomfortable sometimes. The only proper way to change a deed description is to work with a surveyor and have him/her identify what you own, produce a survey, and write a new description.
TYPES OF DEEDS
Maine recognizes several types of deeds, each serving different purposes and offering varying levels of protection:
- Warranty Deed. This deed says the Seller is the lawful owner of the property and will defend any and all claims against the title. This type of deed provides the highest level of protection for the Buyer, guaranteeing the Seller holds clear title to the property free of encumbrances.
- Quitclaim Deed with Covenant. With this type of deed, the Seller says that they give the Buyer the property and have done nothing to cause title defects during their ownership; however, they make no promise about the title from before their ownership.
- Quitclaim Deed without Covenant. This type of deed is used to convey real estate from the Seller with the least protection. This type of deed transfers only whatever title the Seller actually holds.
- Release Deed. If a Seller is relinquishing what they already own to a joint owner, spouse, or trust, they could use a release deed to say “I am releasing my interest.” This provides no guarantees about the property’s title.
- Mortgage Deed. This deed outlines the terms of a mortgage loan and is a public lien recording of the lender’s security interest in the property. When the loan is paid in full, the mortgage must be discharged.
- Merger Deed. A real estate owner might want to consolidate adjacent parcels, perhaps to allow construction that might have been prohibited on a smaller parcel. These deeds are often exempt from real estate transfer tax if no gain or loss is recognized.
- Deed of Distribution or Deed of Sale from a trust or estate. In Maine, if property has been transferred to a trust or is now owned by a deceased person (i.e. an estate) and needs to be distributed or sold, a Deed of Distribution must be used, regardless of how title was previously acquired.
If you own a property jointly with someone else, there are generally two options in Maine for how that is titled. You can own something as Joint Tenants with Rights of Survivorship (i.e. you own the property together and if one of you dies, the other is the surviving owner.) No deed needs to be recorded when a joint tenant dies. When the property is sold, or transferred from the final owner’s estate, that deed will reference the deaths of the prior joint tenants. The other type of joint ownership is as Tenants In Common (i.e. each person owns a share and when one dies, his/her share passes on to his/her heirs instead of going directly to the joint owner. Tenants By the Entirety is not recognized in Maine.
When property is transferred to someone else, there may be a real estate transfer tax owed, unless the transaction qualifies for an exemption. Common exemptions from transfer tax include transfers between spouses, deeds of distribution from estates or trusts, and transfers to corporate entities. More exemptions can be seen here: https://www.maine.gov/revenue/taxes/property-tax/transfer-tax
Local municipalities know when a property transfers based on what is recorded at the Registry. However, they usually update their records once per year, so you may continue to receive a tax bill after you have transferred property. You have an obligation to send that tax bill to the new owner. The Registry does not track changes in address; you should contact the town office with this information.
Surveyors are professionals who identify the boundaries of a parcel of land. They do a detailed inspection with precise location of roads, buildings, and other boundaries or restrictions. They prepare a map, report, or legal description of the parcel. They may leave pins or flags in the ground; these should not be removed.
Abstractors are professionals who research and summarize information related to property, looking at legal documents, deed descriptions, town records, and more. They compile a history of the property’s ownership and encumbrances or restrictions. This report can be used for purposes of obtaining title insurance, or it can be done to clarify exactly what property is owned. If a property has many out-conveyances, this can be helpful. (For example, if a family originally owned 100 acres, but then a 3-acre parcel was given to a grandson and then 7 acres was sold to a neighbor and…, the boundaries can become indistinct over time.)
Understanding the basics of Maine deeds is essential for Buyers and Sellers in order to protect their rights. You should work with a Maine attorney if you are involved in a Maine real estate transaction of any type.
Rev 5/25
The information presented on this website is general in nature and not intended to be legal advice. No attorney-client relationship will exist with JKS, LLC unless agreed to in writing. Please contact us to discuss your particular situation.
