REGARDING YOUR CLOSING (SELLERS)
If our office has been asked to act as settlement agent
in the closing of the real estate you are selling, there are some matters
that we will require your assistance with in order to expedite the transaction
and prevent delays or extra costs to you. They are listed below. Please
also remember that you must bring a valid drivers license or passport with
you to closing for proper identification. The closing cannot take place
if you do not have this identification with you. In order to ensure a smooth
closing, we would like to make you aware of the following information.
MORTGAGES: If your property is presently mortgaged, the mortgage(s) will
be paid off at the time of closing using proceeds from the sale, if any.
You will need to fill out a form and return it to us right away so we may
contact the mortgagee(s) and make the necessary arrangements for payment.
This is very important and requires your immediate attention. After your
mortgage(s) has been paid in full, the banks will send us discharges which
we will record at the Registry of Deeds. In the event there is a non-institutional
mortgage (i.e. one given to a private individual, trust or corporation
as opposed to a bank or mortgage company), we will require that the payoff
amount be furnished to us before the closing and a discharge be delivered
at or before the closing. UNFORTUNATELY, THERE CAN BE NO EXCEPTION IN THIS
REGARD. If you are uncertain about whether an outstanding loan is held
by a private lender, please contact our office or have your attorney do
so. The obligation to furnish a discharge at closing applies also to outstanding
attachments or other liens, if any.
DEED: The preparation of a new deed to convey the premises to the buyer
is your responsibility. You should have your attorney send us a copy of
the proposed deed as soon as possible and before the closing date. While
we cannot represent the lender and you, we are sometimes asked to prepare
a deed as part of our mortgage services.
SMOKE AND CARBON MONOXIDE DETECTOR CERTIFICATE: We call to your attention
the provisions of Massachusetts General Laws, Chapter 148. You should contact
your local fire department, arrange for an inspection, obtain a Certificate
of Compliance and bring the original with you at the time set for closing
and fax a copy to us prior to closing.
WATER, SEWER, and FUEL: If your electricity is provided by a municipal
light plant, you must bring with you a final electric reading. Similarly,
your fuel oil readings (if your property is not a condominium).
EXPENSES: You will also be required to pay for Massachusetts excise stamps,
recording fees to discharge mortgages and other liens and, where appropriate,
to pay these items from the proceeds of the sale.
POWER OF ATTORNEY: If there is a power of attorney involved, please send
our office a copy of the Power of Attorney document prior to the closing.
The use of the power of attorney will have to be approved by our client
and then the form and content thereof must be reviewed by our office. In
any event, the deed transferring title from you to the buyer must be signed
by you in the original and notarized.
CONDOMINIUM UNITS: If the transaction involves a condominium unit, you
are required to provide a certificate pursuant to Massachusetts General
Laws, Chapter 183A, Section 6(d). This certificate is obtained from the
organization of unit owners and states the unpaid common expenses which
have been assessed to the unit owner. You will also be required to provide
a Certificate of Insurance naming, as insured, the buyer and the buyer’s
new lender as well as its successors and assigns as their interest may
appear. It is imperative that the foregoing language be on the Certificate
of Insurance. The trustees of the condominium trust can assist you in this
SALE PROCEEDS: If the closing takes place in our office, we will make every
attempt to record papers and disburse funds on the same day. However, no
matter where this transaction closes, your funds will not be released to
you until the deed and mortgage have been recorded at the appropriate Registry
of Deeds. Your proceeds will be issued to you by a check drawn on our trust
account as is the standard procedure in Massachusetts.
TRUST OWNERSHIP: If this property is owned by a trust, our office also
requires a Trustee’s Certificate. This certificate should state that the
trust has not been terminated, amended or revoked; that the trustee(s)
are the same and they have not resigned; and that so far as may be required
by the beneficiaries, they have assented to the transaction and that they
are of legal age and competent. In addition, the statement should be acknowledged
before a notary public and be in the form suitable for recording. We can
prepare such a certificate at a nominal charge if you request us to do
10. FOREIGN INVESTMENT
IN REAL PROPERTY TAX ACT OF 1980 AS AMENDED: This Federal Law places special
requirements for tax reporting and withholding on the parties to a real
estate transaction under certain circumstances as set forth in the law.
You should seek the advice of your attorney or accountant concerning the
effect of this Act on this transaction. You will be required to execute
a copy of the enclosed certification under penalty of perjury at the closing.
If you do not plan on attending the closing, please be sure that your attorney
or agent delivers the fully completed and executed copy of the affidavit
along with the deed. The closing attorney for the firm cannot and will
not provide information, advice or opinions regarding the Act’s applicability
to you or to this transaction.
11. FEDERAL TAX
LAWS: Since January 1, 1986, Federal Law requires the closing attorney
to report the proceeds of the transaction to the Internal Revenue Service.
Therefore, you will need to complete an INTERNAL REVENUE SERVICE 1099S
REPORTING FORM and return it to us. Please be sure to include your
Social Security or Federal Identification Number.
12. TITLE EXAMINATION:
Please note that if, as the result of searching the title or obtaining
the plot plan and municipal lien certificate, we discover that there are
any deficiencies or defects, they are your responsibility to correct or
to have your attorney do so on your behalf or determine your rights, duties
and obligations under your Purchase and Sale Agreement.
13. CLOSING: You
should also be aware that most lenders require 72 hours notice in advance
of the day of closing to prepare the loan papers and to obtain the funds.
There is no exception to this requirement and it is therefore incumbent
upon you to coordinate scheduling of the passing not only with our office
but with the buyers and brokers as well.
14. IF YOU ARE
SELLING PROPERTY IN THE CITIES OF BOSTON, LYNN, LAWRENCE or HAVERHILL (OTHER
THAN A CONDOMINIUM UNIT), FINAL WATER READINGS ARE REQUIRED. Due to experience
with the Water and Sewer Commissions in these communities, we have been
forced to require a final water reading for all closings pertaining to
property in theses cities. For property in the City of Boston, a final
water reading must be ordered by you from the Water and Sewer Commission.
It takes approximately two (2) weeks to get the final reading. Please note
that a water bill, even a water bill received on the day of the closing,
is not sufficient, as the Boston Water and Sewer Commission is far behind
on its billings. For all other communities please contact the Water and
Sewer Commission of that city or town if you have any questions.
LLPs and LLCs: If you hold title to the property in a corporate name or
in an LLC or LLP you should immediately take steps to secure the following
A) A Certificate of Legal Existence from the Secretary
of State and latest annual filing.
B) For corporations, a waiver of the corporate excise tax lien imposed
by the Commonwealth of Massachusetts Department of Revenue under M.G.L.
Chapter 62C, Section 51 or statement on the deed that the sale does not
constitute a sale of substantially all of the Corporation’s assets.
REPRESENTING THE INTERESTS OF THE SELLER IN REAL
Our office specializes in real estate conveyancing.
We are prepared to represent you in the sale of your real estate and to
make the entire process easy and enjoyable for you.
Unless we are representing one of the other parties
in your sale our office can represent you for a reasonable fee and give
you the comfort you need to proceed confidently toward the sale of your
home or investment property as well as in the purchase of any new real
estate. Some of the services we provide when representing sellers are:
Review of any agreement with a real estate broker or assistance in deciding
whether you should sell the property yourself.
Negotiation and preparation of the Offer to Purchase and Purchase and Sale
Agreement to protect your interests and concerns.
Resolve issues which may arise during the pendency of your sale.
Explain the mortgage process and assist you in understanding just what
your buyer’s or lender's requirements mean to you.
Assist you in resolving and clearing any issues that may be found in the
examination of your property's title.
Prepare the deed from you to your buyer.
Assist in the coordination of the closing and represent you at the closing,
review all closing documents and explain their meaning and significance
Answer questions you might have and resolve disputes that may arise at
any time during the closing process.
Please call our office to discuss how we can represent
you and what our fees are for this service. We look forward to hearing