Purchasing real estate is probably one of the biggest financial transactions you will be involved in and the biggest asset that you will own in your life. You want to make sure that your legal rights are protected as the Buyer or Seller of Real Estate. In order to that you need to obtain an attorney to represent you through the Selling or Purchasing process.
As a Seller, you need an attorney to accompany you and guide you through the closing process by:
- Review the purchase and sale agreement to insure that your rights are protected
- Prepare the Deed
- Settle and remediate any title disputes that may arise
- Attend the closing
The new RESPA rules encourage lends to allow borrowers to select their own attorney or from a list. This saves the buyers hundreds of dollars because they won’t have to hire a separate attorney to review or negotiate the purchase and sale agreement.
A Buyer/Closing attorney is responsible for examining the title to the property to insure that there are no title defects. For a purchase, the attorney exams the title going back 50 years. The attorney also provides a Certifies the Title to the Buyer. The Buyer has the option of obtaining an Owner’s title insurance policy.
In addition, the attorney is responsible for the following:
- Review the purchase and sale agreement.
- Ordering the Municipal Lien Certificate form the particular city and/or town to insure that all taxes, water and sewer charges, and betterment have been paid by the Seller.
- Order a Mortgage Survey Plan (often referred to as a Plot Plan).
At the closing, the attorney is responsible for handling the following issues:
- Payment and adjustment of all real estate taxes and water/sewer.
- Obtaining a passing Title V if the property is serviced by a septic system.
- Paying any and all outstanding mortgages and/ or liens.
- Payment of the Real Estate Commission.
- Payment of any relevant bank fees and prepaid interest.
- Payment of the Transfer, and any relevant recording fees to the property registry of Deeds.
- Recording the Deed, Mortgages and any other relevant document at the property registry.
- Disbursing Seller proceeds.
Post Closing the attorney insures:
- That all mortgages and liens are discharged and that the discharges are recorded at the property registry of deeds.
- The Attorney does a title rundown prior to recording to make sure that no new liens or mortgages have been recorded.
- The Attorney confirms that the loan has been funded and that the Buyer funds are deposited.
– The attorney is responsible for issuing the title insurance policy to the Lender and the Home Buyers.
– The Lender will require to purchase a Loan Title Insurance Policy based on the amount of the loan insuring the lender against an title claims that may arise.
What is an Owner’s Title Insurance Policy?
Owner’s title insurance protects the homeowners if someone sues them and says they Common claims against the homeowner come from the previous owner’s failure to failure to pay taxes or from contractors who say they were not paid for work done on the home before you purchased it. The Policy will over the homeowner for as long as they own the home.
Registry of Deeds: http://www.masslandrecords.com/
Middlesex North Registry of Deeds: http://www.lowelldeeds.com