Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
Under Maine law, paying property taxes on real estate that you do not own does not automatically grant you any ownership interest in that property. Instead, your payment may give you a statutory lien against the property for the amount you paid, plus any allowable interest. That lien allows you to seek repayment from the property owner or, in rare cases, enforce a foreclosure sale if the owner fails to reimburse you.
Key points under Maine law:
- Statutory Tax Lien. Maine Revised Statutes Title 36, § 942 establishes that unpaid property taxes create a lien on real property. When you pay someone else’s taxes, you can step into the lienholder’s shoes and assert a lien for the amount you paid. 36 M.R.S. § 942.
- Subrogation Rights. By paying the taxes, you become subrogated to the municipality’s lien. This means you may demand reimbursement from the property owner, including statutory interest, but you do not gain title or any deeded interest.
- Enforcing the Lien. If the owner fails to repay you, you may file a lien notice in the county registry of deeds. You can then initiate a tax lien foreclosure under 36 M.R.S. § 1141, which could lead to a public sale and possible transfer of title.
- No Automatic Title Transfer. Simply paying the taxes does not transfer fee title or create a co-ownership. You must follow formal lien procedures and courts rarely award ownership without strict compliance with foreclosure rules.
Helpful Hints
- Get a written agreement. Ask the property owner to sign a reimbursement agreement before you pay taxes.
- Record your lien. File a notice with the county registry of deeds promptly to protect your subrogation rights.
- Track deadlines. Maine law sets time limits for foreclosing tax liens—usually within three years of lien recording.
- Charge interest. Maine allows interest on subrogated tax payments; verify the current rate under 36 M.R.S. § 186.
- Consult an attorney. A qualified Maine real estate or tax attorney can guide you through lien recording and foreclosure procedures.