Your visiting this
site has probably been prompted by the fact that our
office has been asked to handle the closing of the sale of
your property in connection with a mortgage being granted
to your buyer. There are some matters that we will require
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 insure a
smooth closing, we would like to review the following
information, and we would appreciate your completing the
fill-in form on this site.
1. 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. Please provide information regarding this
mortgagee, as well as equity mortgagees, in the fill-in
form on this site in order that we may contact the
mortgagee(s) and make the necessary arrangements for
payment. This is very important and requires your
immediate attention. After your mortgages have 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 loan 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.
2. 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 buyer, their lender and you, we are
sometimes asked to prepare a deed as part of our
mortgage services. If you ask us to prepare your deed,
there will be a charge to you for this service.
3. SMOKE DETECTOR
CERTIFICATE: If your property is in Massachusetts we
call to your attention the provisions of Massachusetts
General Laws, Chapter 148, Section 26E. You should
contact your local fire department, arrange for an
inspection, obtain a certificate of compliance and bring
it with you at the time set for closing.
4. ELECTRICITY,
WATER, SEWER, FUEL: If your electricity is provided by a
municipal plant, you must bring with you a final
electric reading. Similarly, your fuel oil readings if
your property is serviced by oil, should also be brought
to closing so that appropriate adjustments can be made.
5. EXPENSES: You
will also be required to pay any applicable Excise and
transfer taxes, recording fees to discharge mortgages
and other liens and, where appropriate, to pay these
items from the proceeds of the sale.
6. 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.
7. CONDOMINIUM
UNITS: If the transaction involves a condominium unit,
you are required to provide a certificate that states
any unpaid common expenses which have been assessed to
the unit owner. You will also be required to
provide a Certificate of Insurance naming, as insureds,
the buyer and their lender and its successors and
assigns as their interest may appear. It is imperative
that the foregoing language be on the certificate of
insurance. The manager of the condominium can assist you
in this matter.
8. SALE PROCEEDS:
If the closing takes place in our office, we will make
every attempt to record papers and disburse funds as
soon as reasonable. 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.
9. 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 can not and will not provide information,
advice or opinions regarding the Act’s applicability to
you or to this transaction.
10. 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.
Consequently, when you complete the attached form, be
sure to include your Social Security or Federal
Identification Number.
11. TITLE
EXAMINATION. Please note that if, as the result of
searching the title or we discover that there are any
deficiencies or defects, they are not our responsibility
to correct. We will require the owner of the property to
clear such matters before we can proceed to close the
transaction.
12. 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. When applicable,
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.
13. CORPORATIONS:
If you hold title to the property in a corporate name
you should immediately take steps to secure the
following documents:
1) a Certificate
of Legal Existence from the appropriate State
authority;
2) a waiver of
any corporate excise tax
PLEASE FOLLOW
THESE INSTRUCTION VERY CAREFULLY. IT IS YOUR
RESPONSIBILITY TO SEE THAT THE ABOVE REQUIREMENTS ARE
MET TO AVOID DELAY, INCONVENIENCE AND UNNECESSARY
EXPENSE TO YOU.
