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Information for Sellers
IMPORTANT INFORMATION REGARDING
YOUR CLOSING (SELLERS)
REPRESENTING THE INTERESTS OF THE SELLER IN REAL ESTATE TRANSACTIONS
IMPORTANT
INFORMATION REGARDING YOUR CLOSING (SELLERS)
Our office has been asked to act
as settlement agent in the closing of the real estate you are selling,
there are some matters that we will require your assistance with
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 make you aware
of the following information.
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
fill out in it’s entirety, the Seller
Mortgage Payoff Authorization form and
return it to us right away 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 mortgage 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 Lender and you
we are sometimes asked to prepare a deed as part of our mortgage
services and can do so for a fee.
3. SMOKE AND CARBON MONOXIDE
DETECTOR CERTIFICATE: We call to your attention the provisions of Massachusetts
General Laws, Chapter 148. You should contact your local fire department,
arrange for an inspection, obtain a certificate of compliance and bring the original with
you at the time set for closing and fax a copy to us prior to closing.
4. ELECTRICITY, WATER, SEWER,
FUEL: If your electricity is provided by a municipal light plant, you must
bring with you a final electric reading. Similarly, your fuel oil readings
(if your property is not a condominium).
5. EXPENSES: You will also be
required to pay for Massachusetts Excise stamps, 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
pursuant to Massachusetts General Laws, Chapter 183A, Section 6(d). This
certificate is obtained from the organization of unit owners and states the 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 the Buyer’s new Lender s well as its successors and assigns as their
interest may appear. It is imperative that the foregoing language be on
the certificate of insurance. The trustees of the condominium trust 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 on the same day. 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 as is the standard procedure in
Massachusetts.
9. TRUST OWNERSHIP: If
this property is owned by a trust, our office also requires a trustee’s
certificate. This certificate should state that the trust has not been
terminated, amended or revoked; that the trustee (s) are the same and they have
not resigned; and that so far as may be required by the beneficiaries, they have
assented to the transaction and that they are of legal age and competent. In
addition, the statement should be acknowledged before a notary public and be
in the form suitable for recording. We can prepare such a certificate if
you request us to do so for a nominal fee.
10. 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.
11. 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. Therefore, we ask you to complete
a INTERNAL REVENUE SERVICE 1099S REPORTING
FORM and be sure to include your Social Security or Federal Identification
Number.
12. TITLE EXAMINATION. Please note
that if, as the result of searching the title or obtaining the plot plan and
municipal lien certificate, we discover that there are any deficiencies or defects,
they are your responsibility to correct or to have your attorney do so on your
behalf or determine your rights, duties and obligations under your purchase and
sale agreement prior to the closing. We will not close a loan without prior resolution
of the defects.
13. 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. Please fill out the Seller
Mortgage Payoff Authorization form to give Barsh and Cohen written
authorization to obtain mortgage payoffs on your behalf. 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.
14. IF YOU ARE SELLING PROPERTY IN THE CITY
OF BOSTON/LYNN/LAWRENCE or HAVERHILL (OTHER THAN A CONDOMINIUM UNIT), FINAL
WATER READINGS ARE REQUIRED: Due to experience with the Water and
Sewer Commissions in these communities, we have been forced to require a final
water reading for all closings pertaining to property in theses Cities. For property
in the City of Boston final water reading must be ordered by you from the
Water and Sewer Commission. It takes approximately two (2) weeks to get
the final reading. Please note that a water bill, even a water bill received
on the day of the closing, is not sufficient, as the Boston Water and Sewer Commission
is far behind on its billings. For all other communities please contact
the Water and Sewer Commission of that City or Town if you have any questions.
15. CORPORATIONS and LLCs: If you hold
title to the property in a corporate name or in an LLC or LLP you should immediately
take steps to secure the following documents:
A.) a Certificate of Legal Existence from the Secretary of State and latest annual
filing;
B.) for corporations, a waiver of the corporate excise tax lien imposed by the
Commonwealth of Massachusetts Department of Revenue under M.G.L. Chapter 62C,
Section 51 or statement on the deed that the sale does not constitute a sale
of substantially all of the Corporation’s assets.
REPRESENTING THE INTERESTS OF THE SELLER IN REAL ESTATE
TRANSACTIONS
Our office specializes in real estate conveyancing.
We are prepared to represent you in the sale of your real estate
and to make the entire process easy and enjoyable for you.
Unless we are representing one of the other parties in your sale our office can
represent you for a reasonable fee and give you the comfort you need to proceed
confidently toward the sale of your home or investment property as well as in
the purchase of any new real estate. Some of the services we provide when representing
sellers are:
- Review of any agreement with a real estate broker or assistance
in deciding whether you should sell the property yourself.
- 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 pendency of your
sale.
- Explain the mortgage process and assist you in understanding
just what your buyer’s or lender's requirements mean
to you.
- Assist you in resolving and clearing any issues that may
be found in the examination of your property's title.
- Prepare the deed from you to your buyer.
- 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.
Please call our office to discuss how we can represent you and
what are fees are for this service. We look forward to hearing
from you.
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