Under Title 33: Property, Chapter 8-A: Land Installment Contracts, §482, Maine law sets forth the minimum contents that must be included in a Land Installment Contract as well as the requirement for recordation of such contracts. This section ensures that both the buyer (vendee) and the seller (vendor) are protected and that the contract terms are clear and enforceable.

§482. Minimum Contents of Land Installment Contracts; Recordation
Required Provisions in a Land Installment Contract: The contract must include the following details to be legally binding:

Total Contract Price: The full purchase price of the property.

Down Payment: The amount of the down payment made by the vendee at the signing of the contract.

Principal Balance: The remaining balance of the contract price after the down payment.

Interest Rate: The interest rate applied to the unpaid balance of the contract price.

Payment Schedule: The amount, timing (monthly, quarterly, etc.), and number of payments that the vendee must make.
Property Description: A legal description of the property being conveyed.

Evidence of Title: A provision that the vendor must provide the vendee with evidence of good title to the property, such as a copy of the deed or a title insurance policy.

Encumbrances: Disclosure of any liens, mortgages, or other encumbrances affecting the property.

Insurance and Taxes: A provision that specifies which party is responsible for property taxes, insurance, and property maintenance.

Default and Remedies: A provision that outlines the procedure for declaring a default by the vendee and the vendor’s rights and remedies in the event of default. This must include a grace period of at least 30 days for the vendee to cure any default.

Recordation of the Contract:
The Land Installment Contract must be recorded in the Registry of Deeds in the county where the property is located.
The contract must be recorded within 20 days after it has been signed by both parties.
Failure to record the contract within this time frame does not affect the validity of the contract between the parties, but it may affect the rights of third parties, such as creditors or future purchasers.
Recordation ensures that the public is notified of the vendee's interest in the property.

Importance of the §482 Provisions:
These requirements help protect both the buyer and the seller by ensuring that the terms of the contract are clearly defined and legally enforceable.
Recordation is crucial for providing public notice of the buyer’s interest in the property, which can protect the buyer’s equity and ensure priority over other claims or liens that may arise.

§481. Definitions
As used in this chapter, unless the context indicates otherwise, the following terms have the following meanings.
1. Down payment. "Down payment" means the payment made by the purchaser to the vendor on account of the purchase price at or before the time of the execution of a land installment contract.
2. Land installment contract. "Land installment contract" means an agreement under which the vendor agrees to sell an interest in property to the purchaser and the purchaser agrees to pay the purchase price in 5 or more subsequent payments exclusive of the down payment, if any, and the vendor retains title to the property as security for the purchaser's obligation under the agreement. Land installment contracts do not include option contracts for the purchase of real property or purchase and sale agreements entered into with the good faith expectation of a separate transaction in which a 3rd party or the seller agrees to finance the purchase price in a single installment.
3. Property. "Property" means improved real property located in this State, sold to be occupied as a dwelling.
4. Purchaser. "Purchaser" means an individual who purchases property subject to a land installment contract, or any legal successor in interest to him, regardless of whether the individual has entered into an agreement as to extension, default or refund.
5. Vendor. "Vendor" means a person who makes a sale of property by means of a land installment contract or his successor in interest.

USE THIS FORM FOR RESIDENTIAL, RENTAL PROPERTY, CONDOMINIUMS, VACANT LAND AND SMALL COMMERCIAL PROPERTIES.

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