Residential, commercial and industrial real estate transactions can be stressful and intricate legal undertakings. We have the experience and knowledge to effectively assist our clients through the real estate transfer from the very beginning of the process through closing.
We urge you to contact us early in the process when we can work to avoid problems and surprises at closing.
If you have a question pertaining to Real Estate Law, please contact the Law Office of Keenan and Trudell for more information.
Buying a home is an exciting time, but it can also be an unnecessarily stressful time if you are not prepared for what to expect during the process. For most people, a home is their single largest asset. For that reason, it is important to understand the steps leading up to a real estate closing, as well as what to expect at your real estate closing. The best way to protect yourself throughout the process is to hire a real estate attorney as early as possible, preferably before you make a written Offer to Purchase a home.
We have the experience and knowledge to effectively assist our clients through the real estate transfer from the very beginning of the process through closing. We urge you to contact us early in the process to avoid problems and surprises at closing.
The Massachusetts Real Estate Offer to Purchase is typically a one or two page document, which appears relatively straightforward. However, it is actually a very significant binding legal contract that can result in significant liability if it is not drafted appropriately. This is why a buyer should retain a real estate attorney as soon as possible to begin assisting the buyer at this initial phase of the purchase. The Offer to Purchase sets forth the purchase price and deposit amounts for the transfer, among other critical provisions. An average deposit with the Offer to Purchase ranges between $500.00 - $1,000.00. A typical deposit upon signing the Purchase and Sale Agreement is roughly 3% to 5% of the purchase price.
It is also important that the Offer to Purchase provides the buyer an opportunity to perform a home inspection, as well as include a clause known as the “financing contingency clause” to allow the buyer to cancel the transaction, and receive his or her deposit back if he or she is unable to obtain financing for the purchase. Finally, in these uncertain times, the Offer to Purchase should also condition that the property appraise at or above the purchase price.
A properly drafted Offer to Purchase will protect the buyer by including these various conditions and set forth the sensitive time deadlines for the purchase, such as the closing date, financing contingency deadline, and the deadline to have your home inspection completed.
Once the buyer's Offer to Purchase has been accepted by the seller, a Purchase and Sale Agreement ("P&S") is negotiated and drafted by the buyer's attorney and the seller's attorney. This document serves as the blueprint for the rest of the real estate transaction. The importance of the P&S cannot be overstated. The P&S must be specially tailored for each real estate transaction because it spells out the final agreement between the parties and generally supersedes the Offer to Purchase and any prior agreements between the parties. The P&S is not a mere formality. Mistakes or inadvertent omissions in the contract can have devastating financial consequences and can result in years of litigation.You should never sign a P&S without having your own attorney review and explain the document to you first.
As a buyer, you should always retain a licensed home inspector to perform a complete and thorough inspection of the property that you plan to purchase. However, as a buyer, you must also condition your Offer to Purchase and your P&S to include both the opportunity to have a home inspection performed and the contingency to cancel the deal and receive your deposit back if the home inspection yields unacceptable results. Otherwise, the buyer could be forced to move forward with a purchase that requires significant and costly repairs. A buyer’s real estate agent or attorney can refer you to a reputable licensed home inspector.
For most purchases, a buyer must apply for financing in order to fund the home purchase. The mortgage application process and final loan approval can take upwards of a month to complete. Even after a mortgage commitment letter has been issued to a buyer, the lender could place unreasonable conditions that the buyer simply cannot satisfy. This is why the P&S should include a financing contingency clause to protect the buyer and the buyer’s deposit. The financing contingency clause states that the buyer's ability to purchase the house or condo is contingent upon his or her ability to obtain mortgage financing by an agreed upon date. If financing cannot be obtained by the deadline in the P&S, the home buyer must notify the seller, in writing, to either cancel the transaction or extend this financing contingency date. If the buyer fails to do so and ultimately is unable to obtain financing, then he or she may end up forfeiting his or her deposit to the seller. This is one of the most important dates to keep track of as you go through the purchase process.
purchase the property and, in exchange, the seller provides clear title to the property and a newly executed deed running from the seller to the buyer is recorded at the Registry of Deeds. You should always schedule a final walk-through of the property before the Closing to ensure that the property is in the same condition that it was at the time you signed your P&S and that all the seller’s personal property is removed from the home prior to the Closing. Additionally, prior to the Closing, you will review a Closing Disclosure with your attorney. The Closing Disclosure itemizes all the expenses for the transaction for both the buyer and the seller and identifies the final figure due at Closing from the buyer after any and all credits and adjustments are made. At the closing, you can expect a tremendous amount of paperwork to review and sign. You will need to bring your license to the Closing and any funds used to purchase the property must be in the form of a wire transfer or a certified bank check. Once all the necessary paperwork is explained to you and signed and the buyer’s funds are delivered in the form of a wire transfer or a certified check, the new deed will be recorded at the Registry of Deeds and title to the property is then transferred to the new home owner. It is very important to have your own real estate attorney present at the Closing to explain the paperwork to you before you sign and to ensure that the property is transferred properly.
At Keenan and Trudell, we have been representing lenders for decades and pride ourselves in offering a personal touch to the closing process for your borrowers. Our firm is located in downtown Millbury in the heart of central Massachusetts where we offer a welcoming location for your borrowers to feel comfortable reviewing and signing their closing documents. We are also located within minutes of the Worcester District Registry of Deeds and can easily accommodate closings at a location most convenient to your borrower.
We handle residential purchases and refinances for large national banks, mortgage lenders, and small local community banks. We are an authorized title agent for Old Republic Title Insurance Company and also have been fully vetted and approved by Secured Settlements.
We encourage you to visit Old Republic Title’s Agent Verification tool on oldrepublictitle.com and with a few simple clicks you can:
• Verify 24/7 that Keenan and Trudell is authorized to issue title insurance policies; and
• Print a time-stamped letter for your loan file to show that you verified the status of an Old Republic Title agent.
The verification process includes a continuous review and approval of our ALTA Best Practices to ensure that we are complying with the high standards and requirements that the new TRID regulations mandate.
Our office has been servicing the needs of our community and beyond for over forty years. We take pride that we are intertwined and invested in our community and will do our best to leave a lasting positive impression for your borrowers.
Selling a home can be an exciting time, but it can also be an unnecessarily stressful time if you are not prepared for what to expect during the process. For most people, a home is their single largest asset. For that reason, it is important to understand the steps leading up to a real estate closing, as well as what to expect at your real estate closing. The best way to protect yourself throughout the process is to hire a real estate attorney as early as possible, preferably before you accept a written Offer to Purchase for your home.
We have the experience and knowledge to effectively assist our clients through the real estate transfer from the very beginning of the process through closing. We urge you to contact us early in the process to avoid problems and surprises at closing. Below, is a short overview of what to expect during the sale of your home.
The Massachusetts Real Estate Offer to Purchase is typically a one or two page document, which appears relatively straightforward. However, it is actually a very significant binding legal contract that can result in significant liability if it is not drafted appropriately. This is why a seller should retain a real estate attorney as soon as possible to begin assisting the seller at this initial phase of the purchase.
The Offer to Purchase sets forth the purchase price and deposit amounts for the transfer, among other critical provisions. An average deposit with the Offer to Purchase ranges between $500.00 - $1,000.00. A typical deposit to expect from the buyer upon signing the Purchase and Sale Agreement is roughly 3% to 5% of the purchase price.
Typically, the Offer to Purchase provides the buyer an opportunity to perform a home inspection, as well as includes a clause known as the “financing contingency clause” to allow the buyer to cancel the transaction, and receive his deposit back if he is unable to obtain financing for the purchase. You will want to explore whether the buyer has a pre-approval, and in what amount, before you accept an Offer to Purchase.
The Offer to Purchase is fully negotiable prior to signing and will set forth the sensitive time deadlines for the sale, such as the closing date, buyer’s financing contingency deadline, and the buyer’s deadline to have the home inspection completed.
Once the Seller accepts the Buyer’s Offer to Purchase, a Purchase and Sale Agreement ("P&S") is drafted by the Seller’s attorney and circulated for negotiation to the buyer’s attorney. This document serves as the blueprint for the rest of the real estate transaction. The importance of the P&S cannot be overstated. The P&S must be specially tailored for each real estate transaction because it spells out the final agreement between the parties and generally supersedes the Offer to Purchase and any prior agreements between the parties.
The P&S is not a mere formality. Mistakes or inadvertent omissions in the contract can have devastating financial consequences and can result in years of litigation. You should never sign a P&S without having your own attorney review and explain the document to you first.
Very often, the buyer conducts a home inspection of your property as a condition to purchase, which may include a pest inspection, radon test, and well test, if applicable. After the home inspection, there may be issues raised by the buyer as to the condition of the property. At that point in the process, you must consider whether you are willing to make the requested repairs, offer a credit to the buyer for the repairs requested, or elect not to address issues raised by the home inspection. The buyer has the option of terminating the Offer to Purchase if he is dissatisfied with the home inspection results and/or your response to their request for repairs. Our office can assist sellers as they navigate through home inspection issues and ensure that the Purchase and Sale Agreement and any addendums capture the terms of the ultimate agreement, post inspections.
Another milestone in the closing process is the buyer’s mortgage financing deadline. For most purchases, a buyer must apply for financing in order to fund the home purchase. The mortgage application process and final loan approval can take upwards of a month to complete. If your Purchase and Sale Agreement is contingent on your buyer obtaining financing, there will be a date set forth in the agreement by which the buyer must have their financing in place. The financing contingency clause states that the buyer's ability to purchase the house or condo is contingent upon his ability to obtain mortgage financing by an agreed upon date. If financing cannot be obtained by the deadline in the P&S, the buyer must notify the seller in writing, to either cancel the transaction or extend this financing contingency date. If the buyer fails to do so and ultimately is unable to obtain financing, then he may end up forfeiting his deposit to the seller. We will diary the buyer’s financing deadline and follow-up with the buyer’s attorney to keep the seller apprised as to when the buyer’s financing has been approved.
If you have private septic service at your property, as a seller it is your responsibility to obtain a passing Title 5 Certificate from a licensed Title 5 Inspector approved by the Town/City in which your property is located, prior to closing.
If your property is serviced by public water and sewer, you will need to request final readings and obtain a final paid water and sewer invoice from the Town/City prior to closing.
The Seller is also responsible for contacting the Fire Inspector for your Town/City to schedule an inspection of your smoke and carbon monoxide detectors at the property to ensure that your property is equipped with the proper number of operational detectors and are installed in the correct location of the property, per code. Once inspected and approved by the Fire Inspector, you will receive a Certificate of Compliance from the Fire Inspector. The Certificate of Compliance is valid for sixty (60) days from the date of issuance and the original is required for closing.
Sellers will also need to contact their utility companies (i.e. electric, gas, cable, phone, internet, etc.) and advise them that the property is being sold and request that they close out the utilities after the closing. Additionally, sellers must notify their homeowners’ insurance carrier and provide it with the scheduled closing date so that the insurance carrier may cancel the insurance for the property. However, do not cancel your homeowners insurance until the sale of your property is on record at the Registry of Deeds. Our office will notify you immediately once your property is on record and remind you to contact your insurance carrier.
Finally, we will assist you in obtaining a mortgage payoff statement, should your house have an existing mortgage so that it can be paid off at closing.
For the sale of a condominium, there are additional documents that are required for closing, such as an original 6D Certificate, and a copy of the master insurance policy.
As you can see, there are a lot of moving parts to selling your home. We take extreme pride in assisting you through every step of the process to help put all the pieces of the puzzle together so that there are no surprises at closing. We will work with you to make sure that all these items are taken care of well before closing and will walk you through the process.
Additionally, on behalf of a seller, our office will review the title examination for your property and advise you as to whether you have clear and marketable title to convey to the buyer. If there are issues with your title, we will assist you to clear up your title defects so that you are able to convey clear and marketable title to the buyer. Additionally, we prepare and coordinate your execution of a new deed for your sale. We also offer you the option to execute a Limited Durable Power of Attorney, which allows us to attend closing on your behalf so you do not have to take time off from work or inconvenience your schedule in any way.
The Closing is the scheduled time when property ownership passes from the seller to the buyer. The buyer provides the funds to purchase the property and, in exchange, the seller provides clear title to the property and a newly executed deed running from the seller to the buyer is recorded at the Registry of Deeds.
Your buyer will perform a final walk-through of the property before the Closing to ensure that the property is in the same condition that it was at the time the buyer signed your P&S and that all the seller’s personal property and debris are removed from the home prior to the Closing. Additionally, prior to the Closing, you will receive a Closing Disclosure prepared by the buyer’s lender’s attorney that we will review with you prior to closing. The Closing Disclosure itemizes all the expenses for the transaction for both the buyer and the seller and identifies the final figure due at Closing to the Seller after any and all credits and adjustments are made.
Should you have questions about the process of selling your home, please feel free to contact the attorneys at Keenan and Trudell.