Maine • Reserve study / underfunding
Is your Maine condo's reserve underfunded — and does the state require funding?
A reserve study can read as reassuring while quietly showing your Maine building is years behind on saving for its roof, elevators, or façade. What matters is how funded the reserves actually are — and what Maine requires.
The short answer
Maine does not require a reserve study and does not require the association to fund it. The Condominium Act permits but doesn't require reserve studies or funding; the resale certificate discloses the reserve balance. A thin reserve is the most common reason a special assessment lands later, so the study-versus-actual-balance gap is the number that matters. CondoSignal reads your reserve study and budget against Maine's rules. Free.Maine at a glance
Reserve study
Not required
No state mandate
Reserve funding
Not required
Underfunding is legal here
Super-lien
None
None — the association lien is fully subordinate to the first mortgage (§ 1603-116)
Resale disclosure
Cancellation right
Voidable until the resale certificate is delivered and for 5 days after (§ 1604-108)
What Maine requires
The Condominium Act permits but doesn't require reserve studies or funding; the resale certificate discloses the reserve balance. Whether a thin reserve is merely risky or actually out of compliance depends on that rule — which is the first thing to establish.
Why underfunding becomes an assessment
Multi-year specials need a majority-in-interest of all owners (§ 1603-103); otherwise the budget passes unless a majority reject it. No statutory cap. The 'percent funded' figure in the study, compared to the actual reserve balance, tells you how exposed you are.
What it means for collection and resale
Maine is a non-super-lien state; a 2015 bill to add a 6-month priority died. The certificate discloses unpaid assessments, anticipated capital expenditures, the reserve balance, and insurance.
Your rights in Maine
As a Maine owner, your reserve information and any approved special assessments should appear in the association's budget and resale disclosures (voidable until the resale certificate is delivered and for 5 days after (§ 1604-108)). None of this is legal advice — confirm against the current statute and a licensed professional in your state.
What to check
- Find the reserve study's 'percent funded' figure.
- Compare the recommended contribution to what's budgeted.
- Confirm whether Maine mandates reserve funding.
- Check the remaining life of the roof, elevators, and façade.
- Look for a reserve catch-up or a recent special assessment.
- Check the study's date — an old study understates today's costs.
Sources
- 33 M.R.S. § 1603-116 — lien for assessments (no super-lien)(High)
- 33 M.R.S. § 1604-108 — resales of units(High)
- 33 M.R.S. § 1603-113 — insurance(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Maine-licensed professional.
FAQ
Frequently asked questions
Not sure what your documents are really telling you?
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