Ryan Wilford - Closing Agent - Business Development

Selling property to a family member?

You may not owe Maine's real estate transfer tax.

Many transfers between immediate family members qualify for an exemption, including certain transfers between parents and children, grandparents and grandchildren, spouses, and siblings.

The important thing to remember is that not every family relationship qualifies.

Just because you're related doesn't automatically mean the transfer is exempt.

That's why it's worth asking the question before preparing the deed.

A qualifying exemption can save a family hundreds—or even thousands—of dollars in transfer tax.

As always, it's best to verify eligibility before the deed is prepared and recorded.

Title opinion versus title insurance — there’s a big difference.

A title opinion is exactly what it sounds like: an attorney’s opinion about the condition of the title.

A title commitment with owner’s title insurance comes with an actual insurance policy backing it.

Some smaller banks still use title opinion letters. And while that may reduce the buyer’s closing costs upfront, the buyer is giving up protection in exchange.

That’s why buyers and buyer’s agents should understand what product the lender is actually using — and whether there’s an owner’s title insurance policy involved.

Because there’s a big difference between an opinion… and protection.

A question we hear a lot:

“Why can’t I just bring a personal check to closing?”

Because title companies are required to collect certified funds before money can be disbursed.

That usually means a wire transfer or certified bank check.

A personal check can bounce, be fraudulent, or take time to fully clear. And once closing funds are sent out, there’s no undo button.

That’s why title companies require “good funds” before the transaction can be completed.

It protects everyone involved in the closing

Selling property in Maine as a non-resident? Here’s something to plan for.

Maine may require a 2.5% withholding on your proceeds at closing. This often catches sellers off guard if they’re not prepared.

There are ways to reduce—or in some cases eliminate—that withholding, but you need to apply in advance through Maine.gov.

In some cases, sellers can qualify for a reduced withholding based on their actual gain—especially if they’ve made improvements and kept records of those expenses.

The key is timing. Without an approved exemption or reduction, that 2.5% will be withheld at closing.