Bill > LD1901

This bill introduces comprehensive regulations for shared appreciation agreements (SAAs) in residential property transactions. A shared appreciation agreement is defined as a written contract where a financial entity provides an upfront sum of money to a consumer in exchange for a future interest in the property's appreciated value or a portion of the property's future value. The bill establishes several key restrictions on these agreements: they cannot create liens against the property, cannot prevent consumers from renting or refinancing their property, cannot include arbitration requirements, and cannot impose penalties for early loan termination. The bill limits the shared appreciation amount to no more than 200% of the initial payment and requires that before executing the agreement, the financial entity must: notify the consumer to seek independent legal counsel, agree in writing to pay for that counsel, and actually pay the consumer's reasonable legal costs. Importantly, any shared appreciation agreement that violates these provisions is deemed unenforceable and considered a violation of the Maine Unfair Trade Practices Act, potentially leading to license revocation for the financial entity. This legislation aims to protect consumers from potentially predatory financial arrangements by establishing clear boundaries and consumer safeguards.

Health and Social Services

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1901&snum=132