Massachusetts Real Estate Practices

Massachusetts is an “attorney state,” and all closings must be handled by them. Title examination may be performed by an independent non-attorney, but the attorney must review the abstract render the opinion of title.

There is no required cancellation fee, and one is generally not charged for business consideration.

The lender issues the release. A servicer can issue the release, but it must be supported by documentary evidence that the servicer is in fact servicing the loan (e.g., servicing agreement, letter to the borrower to make payments to the servicer, etc.) An attorney practicing in Massachusetts can release a mortgage by use of an affidavit. The affidavit, however, is very comprehensive and must be accompanied by evidence to support it. See Gen. Laws, Chapter 183, sec. 55 (subsection g). The requirements of the statute are stringent and compliance with these requirements can be a complicated process.

With the exception of the western part of the state, which uses warranty deeds, deeds with only quitclaim covenants are used in all other transactions. Deeds from executors and administrators of an estate contain no covenants.

Yes, Chapter 183 Section 63B (9-4-19)

A non-title spouse does not have to join in or otherwise consent to a deed unless (i) a homestead has been filed of record by the title holder (Gen. Laws, Chapter 188) or (ii) the title-holding spouse is suing or being sued by his or her spouse for divorce (Probate Rule 411).

Common Statute of Limitations Affecting Real Estate Titles in Massachusetts*

There is no mortgage tax in Massachusetts. There is a tax only on deeds and long-term leases.

The policy is signed by the attorney-agent.

Real estate taxes are assessed on January 1 of each year for the fiscal year that begins the immediately following July 1 and ends 12 months later on June 30. Payments are generally due quarterly – July, October, January and April – and are considered delinquent if not paid when due. Some municipalities collect on a half-year basis.

On residential real estate where there is mortgage financing the attorney is required to do a 50-year search in order to avoid liability under consumer-protection statutes.

Search fees can be charged separately (i.e., broken down on the HUD statement). Massachusetts is not an all-inclusive state.

Who can be listed as the trustee on the Deed of Trust (e.g., residency and/or natural person requirements, etc.)? Can an underwriter or title agent be designated as the trustee, and, if so, is it customary?

Mortgages are used in Massachusetts.

EXCEPTIONS FROM COVERAGE

Except as provided in Schedule B – Part II, if any such Schedule is attached, this policy does not insure against loss or damage (and the Company will not pay costs, attorneys’ fees or expenses) that arise by reason of the following General Exceptions:

1. Rights of present tenants, lessees or parties in possession.

2. Any lien, or right to a lien, for services, labor or materials heretofore or hereafter furnished, imposed by law and not shown by the public records.

3. Discrepancies, conflicts in boundary lines, shortage in area, easements, encroachments, and adverse circumstances which an accurate land survey and inspection of the premises would disclose.

4. Liens for real estate taxes and assessments, which become due and payable subsequent to the date of this policy, plus unpaid water and sewer charges, if any.

5. IF THE INSURED PREMISES IS A CONDOMINIUM UNIT:

A. Covenants, conditions, restrictions, reservations, easements, liens for assessments, options, powers of attorney and limitations on title, created by the laws of the State of the insured premises or set forth in the Master Deed or Declaration of Condominium, in the related By-laws, or in the Declaration of Trust, as duly recorded in the appropriate Land Records Office and as the same may have been lawfully amended, and in any instrument creating the estate or interest insured by this policy.

B. Loss or damage arising as a result of liens for common charges and attorney's fees pursuant to Chapter 400 of the Acts of 1992. (Massachusetts)

None.

None.

The transfer tax is imposed on the seller on deeds or long-term leases and is charged as follows: (a) $2.28 per $500 of consideration in all areas except Cape Cod; (b) $5.70 per $1,000 of consideration on Cape Cod. Additionally, on Nantucket and Martha’s Vineyard the buyer is required to pay a fee of 2% of the purchase price to the county land bank.

Usury coverage is generally available on first mortgages; it is available on second mortgages in most instances.

Include the following exception in your Massachusetts Usury Endorsement: “provided that notice is given under MGL Chapter 271, section 49.”

None.

No witnesses are required, but instruments must be acknowledged.