MA Operations Summary

Licensed Entity:

• See Attached HUD Sample for Additional Information

Banking Information

• Bank account -- <<INSERT ACCOUNT #/ROUTING #/BANK NAME>>
• Checks stale dated after -- ___ days of issuance
• Good Funds Law -- Yes. Loan docs cannot record until lender transfers good funds. https://malegislature.gov/Laws/GeneralLaws/PartII/TitleI/Chapter183/Section63B
• Disbursements Requirements --

Residential: Attorney must disburse fees in connection with clearing or establishing a lien; payoffs and recording charges must be disbursed by a MA Attorney. REBA Inc. v NREIS, et al, 459 Mass. 512 (2011)

Commercial: common practice is for escrow to be held either by a licensed MA attorney or in accordance with an escrow agreement signed by the borrower/mortgagor to the transaction.

• Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) -- Attorney must disburse specified disbursements through IOLTA account for residential transactions.

Escrow/Settlement

• Who can prepare the HUD -- Attorney/Attorney supervised
• Who can sign the HUD (EO/LTP/Attorney) -- Attorney/Attorney supervised
• Who orders hazard insurance -- Customary -
• When is transaction consummated for new HUDS --
• Record before/after disburse -- Record then disburse
• Filed/restricted escrow rates -- No
• Record retention requirements -- 7 years
• Is an attorney involved in the closing -- Yes, entire residential transaction must be supervised by an attorney
• Who can handle loan document signing -- Attorney
• Doc/Deed Prep Restrictions -- Lender may prepare mortgage and mortgage documents; attorney must prepare all other legal documents
• Use Escrow Instructions or not -- No
• Use Estimated HUD or Final -- Final
• Pass-thru charges -- Yes
• Rates Inclusive or not -- Not inclusive. Search fees may be charged separately.
• Up Charging -- No
• Junk Charges -- No
• Special HUD Requirements -- Attorney/Attorney supervised
• Special Disclosures --
• CPL -- Yes

• Joinder of non-titled spouse --

To release estates of homestead, if primary residence of grantor or grantor's spouse, non-titled spouse must join in or otherwise consent to the deed ; if not primary residence, either a statement in the deed under oath or a separate affidavit may be recorded stating the property is not the grantor's primary residence, nor the primary residence of the grantor's spouse or anyone else, and no one is entitled to an estate of homestead in the property MGL c. 188;

If title holder is a party to a divorce action, non-title spouse must sign and/or consent on record to the deed Supplemental Probate and Family Court Rule 411.

• Survey Required --
  • Purchase – yes
  • Refinance – no

Audits

• Required -- No

Recording Process

• E-recording -- County list of e-recording attached
• Record before disbursement --
• Special recording procedure -- May be Torrens properties

Recording/Document Requirements

• Marital Status Stated -- Not required
• Transfer Tax -- Yes Tax on deeds and L.T. Leases
• Mortgage Tax -- No
• Address for grantor/grantee/property -- All parties addresses required
• Witnesses -- Not required
• Names typed/printed -- Yes
• Prepared by/return to -- Preparer not required
• Notary Stamp/requirements --
• Parcel or tax index number -- Not required
• Recitation of Consideration --
• Derivation Clause -- Yes
• Corporate Signatures/Attestation --
• Ink Color/Font -- Black/10 pt minimum
• Legal Description --
• Margins -- 1st page – 3” x 5” top right corner
• Other Special Recording: --

Document Types

• Conveyance -- Warranty Deed or Quitclaim Deed

Practice in western part of state is to use warranty deeds. Deeds with only quitclaim covenants are used in all other transactions. Deeds from executors and administrators of an estate contain no covenants.

• Security Instrument -- Mortgage Deed
• Release -- Discharge or Release

Tenancies

• Tenants in Common -- Yes
• Joint Tenants -- Yes
• Tenancy by Entireties -- Yes
• Community Property -- No
• Homestead -- Yes
• Joinder of Non-titled Spouse -- Sometimes. 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).

Taxes

• Real estate taxes are assessed on January 1 of each year for the fiscal year that begins the immediately following July 1. 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.

Commitment/Policy Special Requirements

• Who can sign Commitment/Policy -- Attorney-agent
• Other --

Payment Customs

• The owner’s policy is paid for by the purchaser.
• The transfer tax on deeds is paid for by the seller and the recording fees are generally paid for by the buyer except with respect to the fees to record title-clearing evidence (e.g., discharge or satisfaction of seller’s mortgage).
• Survey charges are paid for by the buyer, with the exception that the seller may be charged for work necessary to clarify a questionable description
• Closing and settlement fees are paid for by the buyer.

Post Closing Requirements

• Recon follow up required --