Real Estate FAQ's

Why can't I just let my Real Estate Broker do all the work?

There are an infinite number of negotiations involved in buying or selling a house. Apart from the actual buyers and sellers, the transaction often involves financial institutions, inspectors, insurance and title examiners, and a multitude of other players. While a Real Estate Broker is skilled in many of these areas, legal counsel is advisable to assist with negotiating the best deal for you.  An attorney is required to look out for your best interests in a transaction, and can often advocate for you in ways that other real estate professionals either can’t or won’t.  If your deal breaks down, you will need that advocate to fight for your rights and protect your interests – a real estate attorney can do all this and much, much more.   

What does it mean for documents to be "on record?"

Once a transaction is complete, the documents are brought to the Registry of Deeds and put "on record" where they are publicly available. In most real estate transactions, funds are not released until the documents are accepted at the Registry of Deeds, ensuring that the buyer and seller’s interests have not been compromised.  In some cases, transactions can be structured so that the “owner of record” is a trust or other entity, thus providing some degree of privacy for the actual owners or beneficiaries.

Where is my deposit money held?

If a law office agrees to hold any money on behalf of a client, it is put into a special account, known as an IOLTA account (Interest on Lawyers Trust Account). An IOLTA account is designed to hold funds, like real estate deposits, that are only held for a short period of time and the interest from the account is pooled and used to benefit charitable purposes such as legal aid for the poor. Larger funds, or funds held for a client for a longer period, are typically placed in a separate client account for the benefit of that client.

Will a Homestead protect all of my property?

Under Massachusetts law, after March 16, 2011 every property that is owned as a primary residence will have $125,000 of automatic Homestead protection, and if a Declaration of Homestead is filed with the Registry of Deeds $500,000 of total equity can be protected per primary residence.  This amount or protection typically does not increase regardless of how many Declarations of Homestead are filed by the owners of the property, however, if two of the property owners (including spouses who own the property as tenants by the entirety) are over age 62 or have a disability, then both owners can file a Declaration of Homestead, which will protect up to $1 million. Of course, a Homestead does not protect a piece of property from all creditors – the IRS, the Massachusetts Department of Revenue, MassHealth, mortgage holders, and creditors who secured their rights prior to the filing of the Declaration of Homestead are just some of the entities who can obtain satisfaction from your property despite a Declaration of Homestead. 

What is the Real Estate Transfer Tax in Massachusetts?

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