| | | Be it enacted by the People of the State of Maine as follows: |
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| | | Sec. 1. 33 MRSA §506 is enacted to read: |
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| | | §506.__Undocumented mortgage agreements |
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| | | In a residential mortgage loan closing, a buyer, seller, | | licensed real estate professional or settlement agent may not | | knowingly be a party to a financial or other arrangement not | | reflected in the loan settlement statement if the effect of that | | arrangement is to substantially overstate the contract sales | | price. |
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| | | This bill prohibits real estate buyers, sellers and closing | | agents from agreeing to side deals not reflected on closing | | documents if those side deals have the effect of overstating the | | value of the contract sales price. |
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