A Road Association of 7 members formed under Title 23, 3101-3104 has a property owner who is notorious for not paying their bill. Now they have a pending sale on their home, scheduled for mid-April. The administrator of the association is aware that the debt can be carried forward with the property but would still prefer to get this handled before the sale, and would like to notify their realtor but wants to avoid being sued.

Can the association notify the realtor? If it does, is it libel?

"I suggest that you inform the real estate agent about both the recorded claim and the current bills.  They both burden the land and the title attorney needs to know about them and the closing agent will need to pay them all at the closing and you will need to sign for recording a release which the closing agent should prepare for you.  

A 'release' is also called a 'discharge'. It is a simple statement, signed, notarized and recorded, that says that the debt in the recorded notice of claim has been paid.  As in 'release of claim'.

The real estate agent may not be helpful and may be hostile. However, it is her/his legal duty under the Maine Real Estate Commission rules to disclose all major property defects to both the seller and buyer and unpaid road association fees are a property defect. The agent should be made aware of these bills.

The closing agent should prepare it, send it to you to sign and be notarized and when you return it, you will receive a check from the closing agent who will record it and pay the recording fee.

I do not think you need to be concerned about libel. The statute 23 MRSA 3101 (7) created immunity for all collection activities and in 3104 blocks any slander of title causes of action for recording the notice of claim.

Plus, truth is an absolute defense and to be libel there has to be intent to harm and provable damages. If you were to be sued your liability insurance would pay the cost to have it dismissed.

My experience is that these bills all get paid at the closing. Hopefully the new owners will be better neighbors."  

—Attorney Cliff Goodall