Ryan Wilford - Closing Agent - Business Development

Selling property in the United States as a foreign seller?
There’s a federal withholding requirement called FIRPTA—the Foreign Investment in Real Property Tax Act—that can have a significant impact on your proceeds at closing.
In many transactions, the buyer is required to withhold 15% of the sales price and send those funds to the IRS.
For example, on a $500,000 sale, that could mean $75,000 being withheld at closing.
That doesn’t necessarily mean the seller owes $75,000 in tax. It’s a withholding, and depending on the circumstances, some of those funds may ultimately be returned.
The important thing is to understand how FIRPTA may affect your transaction before you get to the closing table.
If you’re a foreign seller, don’t wait until closing to start planning.

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.

Just bought a home in Maine?

Don’t forget about the Homestead Exemption.

If the property is your primary residence, you may qualify for a reduction in your property’s taxable value, which can lower your property taxes.

One thing many homeowners don’t realize is that it doesn’t happen automatically. You need to file an application with your town office.

Once approved, the exemption generally stays in place as long as the property remains your primary residence.

I’ve seen plenty of homeowners miss out on this benefit simply because nobody told them about it.

You can access the Homestead Exemption application here:https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/homesteadapp2022.pdf

Or visit your local town office.

Buying and selling on the same day? Here's a tip.

Try not to schedule the two closings back-to-back.

Many people assume the proceeds from their sale will be immediately available for their purchase. But in some cases, the title company must wait for funding authorization from the buyer's lender before funds can be disbursed.

If that authorization is delayed, the wire gets delayed too.

We recently had a transaction where everything went smoothly—but funding authorization took longer than expected, delaying the seller's wire by a few hours and creating unnecessary stress for everyone involved.

If you're buying and selling on the same day, give yourself some breathing room between the two closings whenever possible.

And here's my shameless plug: if both transactions are closing with Red Door Title, we can often transfer funds internally, making the process much smoother.

As good as it is to be efficient, a little extra time between closings can save a lot of stress.

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

What happens if someone dies
right before closing?

Believe it or not—
it happens.

And when it does,
the transaction can change fast.

Now—if there are two owners on title,
and they own the property jointly with survivorship rights, many times the transaction can continue
with the surviving owner signing
and providing a certified death certificate.

But if the deceased owned individually—
or the ownership structure is different—

Now you may be dealing with:

An estate.
Probate.
A trust.
Or additional legal documentation
before the property can transfer.

Sometimes the delay is minor.

Other times,
it completely changes the transaction.

That’s why title companies ask so many questions
when someone passes away before closing.

A lot of people assume that because a property has stayed in the family for generations, it’s less likely to have title issues.

Honestly, we often see the opposite.

Many older transfers between family members were done informally—without attorneys, title searches, or properly recorded documents.

Those issues can sit unnoticed for decades until someone tries to sell the property.

Just because a property has been in the family forever doesn’t automatically mean the title is clean.

That’s one of many reasons why title searches are so important.

Property taxes in Maine can be confusing—especially on cash deals.

The tax bill is sent to whoever owned the property as of April 1st. So, if a property closes after that, the seller will still receive the bill.

That surprises a lot of people, since the seller isn’t actually responsible for the taxes after closing—and the buyer doesn’t automatically receive the bill.

At closing, taxes are prorated so each party pays their share.

I always go over this with both sides, and I recommend that buyers proactively contact the town office to have the bill sent directly to them.

If the bill isn’t paid, a lien can be placed on the property—and it would show up in the seller’s name if the closing happened after April 1st. This is a bad situation for both seller and the new owner, but one that can easily be avoided.

Mobile Homes can be tricky transactions in Maine.

In many cases, they’re considered personal property, not real estate. That means they’re supposed to be transferred with a certificate of title—not just a bill of sale.

The problem is that sellers often don’t have that title. And to make things more confusing, the BMV will sometimes say the home is too old and has “aged out” of needing one, so they won’t issue a replacement for lost title.

But the law still requires a title transfer.

That creates a situation where ownership may not be properly documented, which can create major problems for the buyer later on.

Without proper title documentation, a buyer could run into issues reselling the home, proving ownership, obtaining financing, or even satisfying park requirements down the road.

Now—if the mobile home is on its own land, that’s a different situation. In those cases, the mobile home can often be conveyed with the deed because we’re insuring the land, including the improvements located on it.

But in a park, it’s a very different type of transaction.