Other Important Stuff To Know When Buying

OR Register for our Deluxe MLS Search & Daily Update Service ONLINE INFORMATION WARNING: The Internet is a fabulous tool for gathering information. But what the Internet can NEVER do is interpret it. Please use online property search tools with care: relying on property data alone, without the context that a professional can provide, will usually lead to incorrect and expensive mistakes. And, making decisions regarding the purchase or sale of your largest asset with online information alone can often lead to disastrous results.

INSIDE THIS SECTION: RESPONSIBILITIES OF BUYER AT CLOSING REAL ESTATE TERMS REAL ESTATE PROCEDURES IN MASSACHUSETTS RESPONSIBILITIES OF BUYER AT CLOSING Prior to closing, you will be receiving a disclosure sheet from the bank specifying charges connected with financing. The following is a list, not all of which apply to you. The bank attorney who conducts the closing will compute these and inform you of the grand total which is payable to the bank. Bank attorney fees, which vary from 1/2% to 1% of the selling price. Recording fees for the new deed and mortgage; approximately $50.00. Points (each point is 1% of the mortgage amount). This check should be written separately for income tax records. Appraisal fee: approximately $125-$150 (subject to change). Credit report: approximately $50-$75. Mortgage insurance: varies with amount of the mortgage. Title insurance: varies with amount of the mortgage - approximately $7 per thousand. Survey/Plot plan: approximately $100. Assumption fee: varies from bank to bank. Advance interest: this is the interest portion of the mortgage payment, and is due at closings taking place from the 2nd day of the month through the last day of the month. Real Estate tax adjustments: approximately 3-4 months’ taxes in advance. Municipal Lien Certificate: $15-$25

Bring to the Closing:

• A certified check or bank check payable to yourself for the purchase price less deposits and the mortgage amount.

• Your checkbook to pay for any adjustments for fuel or taxes to seller.

• Your checkbook to pay for Section 1 above.

• An insurance policy or binder on the property, written for at least the amount of the mortgage and accurately naming the lending institution as first mortgage.

REAL ESTATE TERMS So You Can Look Incredibly Smart & Well Informed When Talking With Anyone! DEPOSIT: An "earnest money" deposit will be required to show serious intent to purchase a home and will be placed in an escrow account. The deposit will be returned to you if the sale is not finalized through no fault of the buyer. Usually with an offer to purchase a property a deposit of $500.00 is sufficient. At the time you sign the Purchase and Sales Contract, the seller will expect a total of 5-10% of the purchase price to be placed in escrow (or as agreed upon by buyer and seller). FINANCING CONTINGENCY: This is very important and should be clearly detailed, including the total loan amount, the date a second or third mortgage is due, and the extent of the financing terms. The seller should allow for a reasonable time limit for the buyer to obtain financing before cancellation of the sales contract. Alternative financing clauses are found in many contracts, allowing buyers to obtain financing other than that mentioned in the sales contract, with the stipulation that such financing does not affect the seller’s proceeds.

INSPECTION CONTINGENCY: This contingency requires that a satisfactory home inspection report be obtained for the contract executed. The buyer usually pays for this inspection (which identifies any structural defects in the property), but it’s definitely a worthwhile expense!

PEST INSPECTION: This inspection also is paid for by the buyer. Your contract can require the seller to pay for treatment for any infestation discovered (including repair of damages, if necessary).

PERSONAL PROPERTY: Any items of personal property that are to be conveyed to the buyer such as light fixtures, washers, dryers, refrigerators, should be specified in writing within the contract. This will prevent any misunderstandings regarding ownership of such items.

DEED: A written instrument which, when properly executed and delivered, conveys title.

EASEMENT: Created by grant or agreement for a specific purpose, an easement is the right, privilege or interest which one party has in the land of another. Example: right of way.

LIEN: A form of encumbrance which usually makes property security for the payment of a debt or discharge of an obligation such as taxes, mortgages, deeds of trust, etc.

PERSONAL PROPERTY: Any property that is not real property, ex: money, savings accounts, appliances, boats, cars etc.

CLOSING: The final settlement of a real estate transaction between buyer and seller.

Commonly used addenda to the offer afford buyers the opportunity to have the property inspected at their own expense, commonly within 3-5 business days, by a qualified home inspector and to agree that the inspection is satisfactory. The State also requires a mandatory inspection for lead paint on any property built prior to 1968. Buyers are also given an agreed upon time during which to apply for and receive financing from the lending institution of their choice (commonly within 28 working days from offer).

PURCHASE AND SALE AGREEMENT:

• The Purchase and Sale Agreement defines in detail all rights and responsibilities of both buyer and seller. It states the intended date of conveyance and the terms of the sale.

• The Purchase and Sale Agreement is usually signed within 7-10 days by both buyer and seller after a mutually agreed upon offer to purchase has been signed.

• The Purchase and Sale Agreement is accompanied by a deposit usually equal to approximately 5-10% of the total agreed upon purchase price.

• The contingency clauses included in the Purchase and Sale Agreement provide opportunity for the buyer to withdraw from the transaction if he/she is unable to meet the contingencies within the specified times and conditions.

The documents involved in the purchase and transfer of Real Estate are legal and binding contracts. It is recommended that buyers obtain legal representations. In the State of Massachusetts it is common practice for the attorney who represents the buyer’s lending institution to conduct the title search and to certify title to the lender and the buyer. This practice may vary in the city of Worcester and adjacent communities where the seller will often provide a Certificate of Title from a local title company. The lender’s attorney represents the lender. However, the legal fees are paid by the buyer as part of the total closing costs. The financing procedure can take from 21-40 days depending on the lender and the market conditions. The actual conveyance may take place at the Registry of Deeds, at the offices of the attorney representing the lender, or as may otherwise agreed upon by the parties. Buyers should plan to be present at the conveyance.

CONSUMER DEMAND FUELS REAL ESTATE CONSULTING Ripping The Roof Off Real Estate How a Multi-Billion Dollar Industry Came To Have an Identity Crisis By: Mollie W. Wasserman No matter how it's presented or deressed up, there is an inherent conflict of interest when a real estate agent is expected to act as a fiduciary agent providing objective, unbiased counsel MORE... Available in all major book stores. Or order online at Amazon or Barnes & Noble.

IT'S TIME FOR YOU TO TAKE CONTROL! How to Make Your Realtor® Get You the Best Deal By: Mollie Wasserman & Ken Deshaies A guide through the real estate purchasing process, from choosing a Realtor® to negotiating the best deal for you! MORE... Available in all major book stores. Order online at Amazon or Barnes & Noble. OR receive a complimentary copy when you schedule a Buyer Consultation with a member of our team.

Dina Raneri 508-371-4385 Email Dina

Mollie Wasserman 508-613-9101 Email Mollie

© Copyright 1996-2008 Mollie W. Wasserman All rights reserved.
No reproduction, distribution, or transmission of the information, graphics, or design included in this site is permitted without the written consent of Mollie W. Wasserman. 
The Real Estate Internet Warning is the one exception to the above rule as we encourage agents to use it but ONLY WITH THE FOLLOWING CREDIT:
"Courtesy of Mollie W. Wasserman, http://www.TheHomeConsultants.com

Any questions or comments about this site should be directed to: Mollie W. Wasserman, Email or (508) 613-9101