Buying a home in Massachusetts can be different
Massachusetts is different, really! Sam Schneiderman, Broker-owner of Greater Boston Home Team explains how our bureaucracy is like no other bureaucracy.
Buying or selling a home in Massachusetts is different than in most states. Of course, local customs vary from area to area (even within Massachusetts) so don't expect that if your previous home sale included a refrigerator and no stove, that will be the case here. Almost everything is negotiable, but customs in various markets dictate many of the unwritten rules.In most states, "escrow companies" hold the buyer’s deposit money, research titles and handle closing details. Here, there are no "escrow" companies (yet). Here, the listing broker or the seller’s attorney usually holds buyer’s deposits in a special “escrow” account. Occasionally, the buyer's broker or buyer’s attorney may hold the deposit. Deposits are accounted for at closing and buyers receive full credit on the closing settlement statement.
One reason that we use attorneys here is because of the way that property records are kept at the county registries of deeds around the state. In many states, property records are indexed by address or another numerical system, but, in the Commonwealth of Massachusetts, we take our heritage seriously and continue to index property records by the names of property owners, like our colonial forefathers did.
Copies of deeds are filed in bound books at the registries. If you search back far enough, you can often go back to the original deeds of large parcels that were then subdivided into smaller and smaller parcels over the years, all indexed from owner to owner. (For example, the Norfolk County registry has deeds dating back to 1793, the year that the County was founded.)In other states, their systems allow someone searching a property title to enter an address or property ID number and viola; they get a printout of the property’s history. Here, attorneys and their title examiners go from deed to deed to recreate the chain of title back at least 50 years, checking each deed for technical details and recorded liens to make sure they are no longer valid, so that they can assure that there is a clear (lien free) title to the property when the deed is conveyed at closing. Attorneys then issue title certifications and title insurance based on their research.
In Massachusetts, it’s against the law to practice real estate without a license. Conveying a property deed is a legal transaction. Therefore, instead of an escrow handling title and closing details, lender's attorneys conduct closings. Typically, all parties are present at the closing, including the buyers and sellers, their attorneys and agents as well as the lender's attorney. (The lender's attorney is also known as the "closing" or "conveyancing" attorney.)
Most attorneys tell us that consumers and lenders receive an extra level of protection here because most parties usually hire attorneys to represent them.
Do you agree or disagree?
If you’ve bought or sold property in another state, which process do you prefer?
