Buyer & Seller Info

Guidance for Buyers & Sellers During the Real Estate Closing Process

• Name, address, telephone number, fax number, and email of Attorneys for Buyer, Seller, and Lender (to be shared with all parties, including your real estate broker).
• Smoke and Carbon Monoxide Detector Certificate of Compliance must be provided under M.G.L. Chapter 148, Section 26F. Typically Seller provides this, but in some instances (foreclosures, etc.), the responsibility is on the Buyer. Whichever party has an obligation to provide the certificate should contact the local Fire Department well in advance to schedule the inspection and determine the cost and payment method required. This can vary by municipality. When scheduling the examination, also make sure that you are aware of other regulations (such as size and coloration of house numbers, etc., proper placement of detectors, and maximum age for the detectors). Smoke and C.O. Certificates of Compliance may be issued during the inspection process, or you may need to obtain them from the Fire Department at a later time. Certificates are generally valid for at least 30 days, but the validity varies by town or city. Always check with your local fire inspector.
• Have water and sewer readings or Title 5 (private sewer disposal) Inspection Report.
• Prepare mortgage discharges. Although this information is usually obtained by the attorneys, make sure there are no outstanding discharges (first/second mortgages and home equity loans or lines of credit) on the property being conveyed. The Deed cannot be recorded unless and until there is a "clear title" to the property.
• Gather taxes or other property liens. The Closing Attorney or Lender's Attorney will order an M.L.C. (Municipal Lien Certificate) from the town's Tax Department. This can take ten or more days to process once the order and payment are received by the Town or City. The M.L.C. will show past-due taxes, water or sewer liens, and possibly other liens recorded with the municipality.
• If the property is a condominium or has any other type of Mandatory Homeowners Association (H.O.A.) fee, written proof that fees are paid must be provided, the 6(d) Certificate. This is issued by the condominium management association. There is usually a fee, and the association may take over ten days (by law) after receipt of the order and payment to issue the document, or "rush" charges may apply. If any of these fees are to be paid at the Closing, the adjustment must be made on the closing statements, so be sure to have this document in hand well before the closing deadlines. Copies of the Condominium Trust, Master Deed, Rules & Regulations, and most recent financial statement should also be shared between Seller and Buyer.
• It is the Seller's responsibility to provide the closing attorney an original, signed, notarized Deed transferring ownership from Seller to Buyer. The Deed can be prepared by Seller's Attorney or the Lender's Attorney. Make sure arrangements are made in advance of the preparation of the final closing documents, especially if the Seller is not local and the paperwork must be mailed or sent via courier.
• Power of Attorney. If the Seller cannot attend the Closing, a Power of Attorney must be executed by all legal owners of record of the property. In some cases, the Buyer may provide a Power of Attorney, but many lenders will not allow this, so arrangements (and factoring in extra time) must be made for documents to be sent and received via overnight or priority delivery service.
• Homeowners insurance must be secured by the Buyer. The Buyer's Lender should be consulted to determine if a full year's premium must be paid in advance (even if insurance is being escrowed by the Lender). The Buyer must provide an "Insurance Binder" to the closing attorney. If other insurance (flood, etc.) is mandated by the Lender, this must also be addressed and possibly paid for in advance of the Closing.
• Be ready to present the documentation for transfers of services such as water heater rentals, propane tank rentals, exterminators, and warranties (for appliances, pools, generators, hot tubs, radon mitigation systems, sump pumps, sewage disposal pump-up systems, etc.). As solar panels can either be purchased or leased, it is crucial to know upfront whether the contract is transferrable to the Buyer and whether that is permitted by the Lender. In some cases, wood/pellet stoves or fireplace inserts, etc., may need to be inspected and certified. The Seller should contact the companies providing the equipment or services and local authorities regarding the regulations in their city or town.

• Water and Sewer Readings and receipt stamped "Paid" by the town
• Value of heating oil or propane, etc., remaining in the tank that Seller will be reimbursed for by Buyer at closing
• Real estate taxes, condominium, or HOA fees, etc.
• Value of any other items negotiated (credits in lieu of repairs, etc.)
• Any bills, etc. that are to be paid at closing by the Closing Attorney

• Buyer's balance of the deposit, closing costs, prepaid items, escrowed items, etc., must be in the form of a Certified Bank Check made payable to the Buyers or, in some cases, to the Lender's Attorney (verify this information with the Lender's Closing attorney in advance).
• Identification must be provided. You will be required to provide positive identification in the form of a photo I.D.; therefore, you must have with you a valid driver's license or other valid forms of identification required by the state.
• Keys, garage door openers, remote-control devices for items conveying with the property, garage door, and other codes, etc. Keys may be held by the closing attorney or another party until after the Deed is recorded at the appropriate Registry of Deeds, as the Buyer is typically not allowed to enter the property or have movers, cleaners, cable companies, etc., gain access to the property until the property is "on record."