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Massachusetts Real Estate Lawyers
1. WELL I'M READY TO START LOOKING. WHAT DO I DO FIRST?
First thing you should do is request a copy of your credit report to check for inaccuracies, as studies suggest that at least half of all reports have at least one error, and getting a copy early in the process will give you time to fix any mistakes. You can get a copy of your credit report by visiting www.equifax.com or www.experian.com. Next, you must figure out what price range you can afford. Once you have an idea of what you can spend, you can now better target communities that reflect your price.
2. SHOULD I USE A REAL ESTATE AGENT?
Experience has taught us that using a real estate agent is not only a great idea, but it will almost always save you time as well as money. A qualified real estate agent can provide answers to the most important questions, like the quality of the school system, neighborhood safety statistics, and recent sales in your price range. Additionally, because the agent is familiar with the community and market inventory, they can save you hours of driving around and searching through classified listings, and the fee for the real estate agent is the responsibility of the seller. Make sure to take your time when selecting an agent, and be certain that they are not just qualified, but that they have experience in the city or town in which you are looking.
3. I HAVE FOUND THE HOUSE I WANT. SHOULD I MAKE AN OFFER?
Before you make an offer, make sure that you realize that you are signing a legally binding contract, and you will be held responsible for many of its terms and conditions. Be certain to list all the contingencies involved, such as the offer being predicated upon the sale of your home, the offer contingent upon a satisfactory home/pest inspection, the offer being contingent upon you obtaining financing, and the offer being subject to a mutually agreeable Purchase and Sale Agreement. It is always advised that you consult with an attorney experienced in real estate before signing any document.
4. YOU SAID I SHOULD CONSULT WITH AN ATTORNEY, BUT DOESN'T THE BANK LAWYER REPRESENT ME?
Unless otherwise negotiated, the lenders closing attorney represents the interests of the lender. Therefore, it is not the responsibility of lenders counsel to advise you on your rights and obligations regarding your new home purchase. Because of this we highly recommend that you retain your own attorney to represent your interests in this process. A qualified attorney will provide the following services:
- 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 process of your purchase, and assist you if you are selling real estate to purchase your new home.
- Explain the mortgage process and assist you in understanding just what the lenders commitment letter says.
- Assist in the coordination of the closing and represent you at the closing, review all closing documents and explain their meaning and significance to you.
- Answer questions you might have and resolve disputes that may arise at any time during the closing process.
5. MY BROTHER-IN-LAW IS HANDY. CAN'T HE BE MY HOME INSPECTOR?
Always hire a licensed and insured home inspector to inspect the home you wish to purchase. Occasionally, my office is contacted by new homeowners, whom, after moving in to their hew house have found major structural defects that would have been obvious to a qualified home inspector. My first request to this new homeowner is to see a copy of their home inspection report, which, without exception doesn't exist because they have relied upon the advice of a friend or family member. Remember, by hiring a licensed and insured inspector, you are benefiting not only from their expertise, but also their liability insurance coverage, should a defect that should have been detected is not.
6. HOW DO I GO ABOUT SELECTING A MORTGAGE LENDER?
The best way to select a lender is to ask people who are familiar with the home buying process. Your attorney and real estate broker can be great sources of information, as they deal with home financing on a daily basis. Also, keep in mind that different lenders have different loan products whose benefits may vary depending upon several factors such as the borrowers credit score, employment status, and amount of down payment. In any event, don't get caught up on making your decision based upon the interest rate alone. Often times, one lenders interest rate may seem low, however you may have to pay points or additional closing costs to obtain that lower rate. Also, make sure that your loan does not have a prepayment penalty which may cost you money if you decide to refinance or sell your house.
7. WHICH LOAN IS BEST - A FIXED OR ADJUSTABLE RATE MORTGAGE?
The answer depends upon how long you plan on owning the home you are purchasing. If you plan moving in a few years, then an adjustable rate loan may make more sense as the interest rate will be less than the fixed rate loan. Adjustable rate loans traditionally come in 1, 3, and 5 year adjustable terms. However, the risk is that if the interest rates are higher when your loan adjusts, then your interest rate will also increase. In contrast, a fixed interest rate will remain the same for the term of your mortgage. Your interest rate is determined by the stock market and other financial indicators.
8. WHAT IS A FINANCE CONTINGENCY DATE?
The finance contingency date is one of the most important sections of your real estate contract, as it pertains to the date upon which you must secure financing. If this finance contingency date is allowed to pass and the buyer fails to secure financing, then the all deposits made will be put at risk. It is important to have a seasoned real estate attorney working with you on your purchase to assist you with this deadline and any extension which need to be requested. This date becomes even more complicated when your financing is contingent upon the sale of your current home.
9. WHY SHOULD I BUY AN OWNER'S TITLE POLICY?
An owners policy insures you against possible title claims against your property, and provides you with immediate and expert legal support. Keep in mind that the lenders policy required to be purchased by the bank at closing, protects the lender for the amount of their loan, however it does not protect the homeowner. For a onetime cost, you can have piece of mind knowing you are protected from such things as forged documents, undisclosed or missing heirs, unknown creditors, or mistakes in recording. In short, an owners policy provides you protection against title defects that existed anytime prior to the purchase of your property. Additionally, some title companies now offer enhanced policies that protect the homeowner against defects that arise even after the property is purchased.
10. WHAT IS A HOMESTEAD?
The Homestead Act was created by the Massachusetts Legislature to provide protection for a homeowner on their primary residence, against attachments or forced sale from unsecured creditor claims. There are several debts which are not protected by a Homestead including mortgages, state, local and federal taxes, and court ordered support. In 2004, the Massachusetts State Legislature amended this Act, increasing the amount of protection from $300,000.00 to $500,000.00. In order to receive this protection, a Declaration of Homestead must be completed and filed in the Registry of Deeds for the County where the home is located. Our office provides this service free of charge for individuals we represent on real estate purchases.
To schedule an initial consultation with an experienced attorney, contact us via e-mail with a brief description of your needs or reach us by phone at our Downtown Boston, Hyde Park, or Braintree, Massachusetts, office locations.
