MA Underwriting Summary

Search/Exam

• Minimum Search Requirements -- Purchase Money Mortgage (1-4 family residential) requires a 50-year search from a "good" deed (one to a bfp for consideration) for required attorney certification under MGL c. 93, sec. 70; See REBA TS 1 [1]
• Plant or other search restrictions -- No
• Additional Requirements for REO Searches -- N/A
• Foreclosure Checklist -- N/A
• Special Searches Required (Code, HOA, Utilities)? -- Probate/Family Court
• Survey Requirements --
  • Purchase – yes
  • Refinance – no

UPL

• UPL Hot Button Issues -- Extreme caution required for MA Transactions; WFG approved attorney is ________________; closing with any other attorney requires written approval from Compliance.

• Mass is one of the most aggressive states on unauthorized practice of law enforcement and most restricted state – generally, agents must be a MA licensed attorney 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.

Witness Requirements

No witness required, but instruments must be acknowledged

Property Tax

Real estate taxes are assessed on January 1 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.

Mortgage/Transfer Tax

The transfer tax is imposed on the seller on deeds or long-term leases with a consideration of $100 or more at a rate of $2.28 per $500 of consideration in all areas except Cape Cod (Barnstable County), and $6.48 per $1,000 of consideration on Cape Cod (Barnstable County). 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.

Who May Serve As Trustee On Deed Of Trust

Mortgages customarily used.

Time Limitations

• US Judgment Liens -- 20 years, renewable for 20 years
• State Court Judgment Liens (Levy on Executions) -- 6 years + 90 days
• State Court Pre-Judgment Attachments -- 6 years
• Federal Tax Liens -- 10 years (+30 days) from assessment date; can be refilled; attaches to after acquired property
• State Tax Liens -- 10 years; can be refilled; attaches to after acquired property
• Federal Estate Tax Lien -- 10 years from date of death
• State Estate Tax Liens -- 10 years from date of death
• State Corporate Excise Tax -- 3 years from assessment
• Mechanics Liens --
• Financing Statements -- 5 years, can be renewed for 5 year term
• Mortgages -- 5 years after stated maturity date; 35 years from recording if no stated maturity date within mortgage MGL c. 260, §33
• HOA Liens --
• Condominium assessments --
• Child Support Liens -- 10 years from recording date or perfection; can attach to after acquired property
• Errors in Acknowledgements, consideration, seals, corporate or individual, authority -- 10 years from recording date

Odd Stuff

• 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.