NELTA Submits Testimony for Maine Unfair Listing Agreements Bill

NELTA Submits Testimony for
Maine Unfair Listing Agreements Bill

The New England Land Title Association (NELTA) submitted testimony this week to Maine’s Joint Standing Committee on Innovation, Development, Economic Advancement and Business regarding  L.D. 1306 – “An Act to Protect Homeowners from Unfair Agreements to Exclusively List Residential Real Estate For Sale”.

NELTA supports the bill which would protect homeowners from the practice of recording unfair real estate fee agreements in property records. Some real estate brokerage firms have been offering homeowners a payment of $300 to $1,000 or more to sign a long-term listing agreement, usually for 40 years. In addition to subjecting the homeowner to a penalty of three percent of the property value for non-compliance, it can create a lien on the property, which add significant costs and complications to selling the property as well as refinancing or accessing a home-equity loan. These agreements not only bind the current homeowner, but also any subsequent homeowners to the provisions of the agreement during the 40 years it is in effect.

A copy of NELTA’s testimony can be found in link.