Understanding Real Estate Titles and Ownership in Maine
For many Mainers, a home, camp, or other real estate is one of their most valuable assets. How that property is titled is critically important — it affects liability, inheritance, and how easily the property can be transferred or sold.
Under Maine law, real estate includes the land itself, buildings or structures, and any natural resources such as timber or crops. Property can be residential, commercial, or even recreational (such as a family camp). Understanding how your title is held is essential for estate planning and ensuring your wishes are carried out.
What Is a Title?
A title is the legal evidence of property ownership. It must be clear (free of liens, unpaid taxes, or other encumbrances) before it can be transferred — whether through a sale, gift, or inheritance. Maine probate courts require a valid, marketable title for real property to be distributed to heirs or beneficiaries.
The most common ways to hold title in Maine are:
- Sole Ownership (Individual Name)
- Joint Tenancy with Right of Survivorship (JTWROS)
- Tenancy in Common (TIC)
- Tenancy by the Entirety (TBE) — available only to married couples
- Ownership by Trust or Legal Entity (corporation, LLC, partnership)
Let’s break these down:
Sole Ownership (Individual Name)
If you own property in your name alone, you are the sole owner. If you become incapacitated, no one — not even your spouse — can refinance, sell, or transfer the property unless they are granted authority through a Durable Power of Attorney or a court-appointed conservatorship.
A common misconception is that having a will solves this problem. A will only becomes effective after death — not during incapacity — so it will not help with managing property while you are alive.
Joint Tenancy with Right of Survivorship (JTWROS)
This is one of the most common forms of co-ownership in Maine, especially between spouses or partners. When one owner dies, their share automatically passes to the surviving owner, avoiding probate for that property.
Important Considerations:
- Both owners must sign off on any sale, refinance, or transfer.
- The property is exposed to both owners’ debts and liabilities.
- Probate is only avoided at the first death — once the surviving owner dies, the property will go through probate unless new arrangements (such as retitling or placing in a trust) are made.
Tenancy in Common (TIC)
Under Maine law, a TIC allows two or more people to own property together but without survivorship rights. Each owner holds a specific share, which may be equal or unequal.
When one owner dies, their share passes under their will or, if they have no will, according to Maine’s intestacy laws — not automatically to the other co-owners. This can lead to multiple heirs owning small percentages of property, making decisions about sale or management more complicated.
Tenancy by the Entirety (TBE)
Maine allows TBE ownership for legally married couples. This form of title treats the couple as a single legal unit. Upon the death of one spouse, the property passes automatically to the survivor without probate.
TBE ownership also provides some protection from creditors — in Maine, a creditor of just one spouse usually cannot force the sale of the home to satisfy a debt.
Ownership by Trust or Legal Entity
Real property in Maine can also be held by:
- Revocable Living Trusts — This is a common way to avoid probate. If you become incapacitated, your successor trustee can step in without court involvement, and upon your death, the property can be distributed according to your trust terms.
- LLCs or Corporations — Sometimes used for camps, family cottages, or income properties to protect liability or simplify multi-generational ownership.
- Partnerships — For co-owned investment properties or business ventures.
Why Title Matters in Maine
How you hold title in Maine will affect:
- Whether your property passes through probate
- Whether your spouse or heirs automatically inherit it
- Exposure to creditors and lawsuits
- How quickly property can be sold or transferred
Get Professional Guidance
Maine property law can be complex, especially with blended families, multiple heirs, or out-of-state beneficiaries. Choosing the right form of ownership can prevent future disputes, unnecessary probate delays, and even tax complications.
📞 Call us at (207) 848-5600 to discuss your property and learn whether retitling or placing your real estate into a trust is the right move to protect your family and your legacy.
