Q:
Do I need a lawyer if I am buying a
home?
A: Buying a home is an
enormous step, both financially and personally. It is always
advisable to have legal representation when entering into such a
significant and expensive transaction. The process of buying
your new home will require you to sign a binding contract,
commonly referred to as a Purchase and Sale Agreement. If you
are represented by a lawyer, he or she will work to integrate
your requirements into the Agreement, and will review the
document to make sure that your needs are met. If the seller is
represented by an attorney and you are not, the seller may have
a very unfair advantage in negotiating the terms to be included
in the Agreement. In addition, a lawyer will help you to gather
and prepare necessary documents for the closing, as well as
accompany you to the closing in order to review and explain all
of the mortgage documents if you so desire.
Q: What steps do I need to take if I want to buy a home?
A: There are many steps that need to be completed prior to
purchasing a new home. Please see our “Buyer’s Checklist” in our
Download Forms
section.
Q:
I am planning to buy a new home soon. When should I hire a
lawyer?
A: Ideally you should
have legal representation before you sign an Offer to Purchase.
Under Massachusetts Law, a signed Offer to Purchase Real Estate
is considered a binding contract. However, it is of utmost
importance to secure the assistance of an attorney before you
review and sign the Purchase and Sale Agreement.
Q:
Who does my Real Estate Agent
work for?
A: Unless you have signed
an agreement with a buyer’s agent, the real estate agent
represents the seller of the home.
Q:
What are closing costs?
A: “Closing costs” is the
term used to refer to the various fees and expenses charged by
the lender of a mortgage related to the purchase, sale, or
refinance of a home. Closing costs may include such things as
pre-paid interest, appraisal fees, title examination expenses,
credit report fees, underwriting fees, legal fees, title
insurance premiums, recording costs, etc.
Q:
How much are closing costs?
A: The amount for closing
costs varies from lender to lender. Your attorney should receive
a Settlement Statement prior to the closing, which itemizes all
charges. He or she will be able to review the amounts with you,
and address any issues that arise.
Q:
What is Title Insurance?
A: Title Insurance is a
form of insurance that protects the policyholder from an
economic loss due to title defects. There are two types of
policies, a lender’s policy and an owner’s policy. A lender’s
policy of Title insurance is required for all purchases and
refinances. As an example of the protection Title Insurance
provides, if there is a forged deed in the title history of the
property, or if there is a misfiled document at the Registry of
Deed that causes a title defect, the Title Insurance Company
will protect the policyholder’s investment in the property.
Q:
Should I purchase an Owner’s
Policy of Title Insurance?
A: It is always advisable
to consider insurance coverage for a significant investment. Due
to the recent surge of refinancing and home sales in
Massachusetts, coupled with an understaffed Registry of Deeds,
there is an increasing risk that a title may prove to be
defective. An owner’s policy of Title insurance incurs a
one-time expense that will cover the owner for the length of
time that they own the home. It is a topic that should be
discussed in depth with your attorney.
Q:
What is a homestead?
A: Under Massachusetts
Law, a homeowner is entitled to protection from the future
claims of certain creditors of up to $500,000.00 of the equity
ownership in his or her primary residence. In order to take
advantage of this protection, a homeowner must file a
Declaration of Homestead at the Registry of Deeds. Our office
can prepare the document and attend to its filing at the
Registry.
Q:
What is the difference between
Tenants in Common, Joint Tenants, and Tenants by the Entirety?
A: All three of those
terms refer to different types of ownership for Real Estate. If
you are a tenant in common, you own a percentage interest
in the property. For example, if there are two owners of a
property, and they hold ownership as tenants in common, they
will each own an undivided interest in 50% of the property. They
each own 1/2 of the property individually. If one of the owners
were to pass away, his or her 1/2 of the property would pass
through his or her estate. If those same two people held title
to the property as joint tenants, they would both have an
undivided interest in the whole property. So as joint tenants
each person would legally own the whole property. If one of the
two people were to pass away, his or her interest would
automatically vest in the surviving joint tenant. Tenants by
the entirety is very similar to joint tenancy, but with some
additional legal protection from creditors, and it is available
only to married couples. |
