Buyer Information / Seller Information / Commercial Real Estate Information
At the Law Offices of Flood & Favata we offer comprehensive real estate assistance for residential and commercial real estate transactions. Our experience allows us to reduce the risks inherent in a transaction as complicated as a real estate purchase. Whether you are selling or buying, residential or commercial, we can help you proceed confidently.
Buyer Information
OFFER TO PURCHASE
The Offer to Purchase is a legally binding agreement to purchase real estate. It contains certain deadlines and time frames for Buyer(s) of a home by which you must conduct your inspections (including radon), sign the Purchase and Sale Agreement and dates by which you must apply for your mortgage and be approved for your mortgage. The Offer to Purchase may also include certain conditions unique to the purchase of the home.
PURCHASE AND SALE AGREEMENT
It is customary for the Seller's real estate broker or attorney to prepare a first draft of the Purchase and Sale Agreement and forward it to the Buyer's attorney or representative. We need to obtain or prepare this first draft, review it and negotiate with the other party's representative before the deadline by which the Purchase and Sale Agreement must be signed. If you do not have a broker or they do not prepare the Purchase and Sales Agreement, we can prepare it for you.
As part of our service, we will review the Purchase and Sales Agreement, ensure that any special conditions contained in the Offer to Purchase are included and negotiate approved language to be in conformance with standard real estate practice. It is important to read the entire agreement thoroughly, before signing it, so that you understand and approve of the terms contained in the agreement. In Massachusetts, all agreed upon repairs and/or credits, if applicable, should be included in the agreement. Please call if you have any questions.
MORTGAGE COMMITMENT
Under the mortgage contingency paragraph of the Purchase and Sales Agreement, there is a specified date upon which you must notify the seller if you have not received your mortgage commitment or if your mortgage application has been denied. Failure to do so by the date could result in the loss of your deposit. Please note that a mortgage commitment is different from a pre-qualification letter. Since your lender will not send us the mortgage commitment, it is your obligation to track your commitment from your lender and keep us advised if you do not receive your commitment by the Mortgage Contingency date.
TITLE INSURANCE
Your lender requires you to provide them with Lender's Title Insurance Policy to protect its interests up to the total amount of the Mortgage. However, this insurance only protects the lender and will not protect you, the Buyer. You may purchase an Owner's Title Insurance Policy at the time of closing through this office for a one-time premium which is based on the purchase price of your home. An Owner's Title Insurance Policy provides coverage for numerous matters which are not covered by the standard Attorney's Certification of Title and which are not discoverable by searching the land records. Such examples are forged documents, missing signatures and mistakes in recording, unknown heirs to an estate, claims to your property, etc. The new Eagle Policy also protects matters after closing including mechanics liens, encroachments and building permit violations. We recommend the owner's title insurance which can be obtained at a reduced one time fee when obtained with the Lender's Policy at closing.
HOMEOWNER'S INSURANCE
You will be required to purchase homeowner's insurance prior to the closing so that coverage has been prepaid for the first year’s premium. The inception date must be no later than the date of the closing. Coverage must at least equal your loan amount or 100% replacement cost must be guaranteed. Please inform your insurance agent that we will need a copy of the insurance binder sent or faxed to this office at least five days before closing. The original binder must be brought to closing. Additionally, the endorsement naming the mortgagee must read exactly as your commitment letter requires. If there is no mortgagee clause within your commitment letter, contact your lender for this information.
SCHEDULING OF CLOSING
Generally, our office conducts closings Monday through Friday, 9:00 am to 5:00 pm, at our office in Marlborough. It is suggested that you have a discussion about the desired time of closing with your real estate broker, if applicable, before contacting this office to schedule your closing. It is our experience that if scheduling is handled in this way, all parties tend to be more satisfied with the result.
OTHER INSTRUCTIONS
You should also be prepared to bring the following documents to closing unless otherwise instructed by this office:
- Bank or certified check payable to yourself for the amount quoted to you prior to closing;
- Homeowner’s insurance binder with a paid receipt for the first year's premium and the name and address of your lender as the additional insured;
- Picture identification (i.e. license).
Seller Information
OFFER TO PURCHASE
The Offer to Purchase is a legally binding agreement to purchase real estate. It contains certain deadlines and time frames for the Buyers of your home by which they must conduct their inspections (including radon), sign the Purchase and Sale Agreement and dates by which your Buyers must apply for their mortgage and be approved for their mortgage. The Offer to Purchase may also include certain conditions unique to the sale of your home.
PURCHASE AND SALE AGREEMENT
It is customary for the Seller's real estate broker or attorney to prepare a first draft of the Purchase and Sale Agreement and forward it to the Buyer's attorney or representative. We need to obtain or prepare this first draft, review it and negotiate with the other party's representative before the deadline by which the Purchase and Sale Agreement must be signed.
As part of our service, we will review the Purchase and Sale Agreement, ensure that any special conditions contained in the Offer to Purchase are included and negotiate approved language to be in conformance with standard real estate practice. It is important to read the entire Agreement thoroughly, before signing it, so that you understand and approve of the terms contained in the Agreement. In Massachusetts, all agreed repair and/or credits, if applicable, should be included in the Agreement. Please call if you have any questions.
MORTGAGE COMMITMENT
Under the mortgage contingency paragraph of the Purchase and Sale Agreement, there is a specified date by which the Buyer(s) of your home must notify you, the Seller(s), whether or not they have received a mortgage commitment from their lender or if their mortgage application has been denied. Failure to do so by the required date could result in your Buyer(s) forfeiting their entire deposit if they fail to notify you or us of their inability to obtain a mortgage commitment or of the denial of their mortgage application. Please note that a mortgage commitment is different from a pre-qualification letter. Only the mortgage commitment is the final outcome of the lender's decision to extend a mortgage loan to the Buyer(s).
SCHEDULING
Generally, our office conducts closings Monday through Friday, 9:00 am to 5:00 pm, at our office in Marlborough. It is suggested that you have a discussion about the desired time of closing with your buyer and/or your real estate broker before contacting this office to schedule your closing. It is our experience that if scheduling is handled in this way, all parties tend to be more satisfied with the result.
REQUIRED DOCUMENTS AT CLOSING
- Deed: A new deed must be prepared and executed by all the persons holding title to your property. If you are not represented by an attorney and wish for this office to prepare your deed. We can prepare it for you. If you have an attorney prepare a new deed, we require that a copy be sent to us for review prior to the closing.
- Power of Attorney: If anyone named in the deed will not be present at the closing, any representative must have a valid, notarized Power of Attorney. Please be sure that your attorney is a aware of this requirement. The deed may not be signed under Power of Attorney.
- Final Water/Sewer Bill: If you have municipal (town) water and/or sewer, you must arrange for final reading and bill. The bill should be paid in advance of closing and the receipt brought to closing.
- Smoke Detector Certificate: Massachusetts law requires a certificate be presented at closing indicating that proper smoke detectors exist at the property. You need to contact your local fire department to conduct this inspection and to issue the Smoke Detector Certificate to you. The ORIGINAL Smoke Detector Certificate must be brought to closing.
- Light Lien Letter: In some cities and towns, electric service is provided by the city or town. If your municipality provides electric services to your home, you will need to arrange for a final reading and bill. The bill should be paid in advance of closing. The receipt and lien release must be brought to closing.
- Title V Certificate: If your home is serviced by a private septic disposal system, Title V of the Massachusetts Environmental Code requires that your system be inspected and certified as in compliance with Title V. Please be sure that you make yourself aware of Title V and its requirements.
CONDOMINIUMS
- Certificate of Insurance: If the home you are selling is a condominium unit, your unit is insured as part of the entire condominium through the master insurance policy. You will have to provide to this office, in advance of closing, a copy of a new Certificate of Insurance naming the new owners and their mortgage lender in said certificate. Please arrange to have the exact legal names of the buyers and of their lender for the certificate of insurance. The certificate itself is usually obtained through your condominium association who will contact the insurance agent involved with the Master Policy. The ORIGINAL certificate must be brought to the closing.
- Common Expenses: You must also provide at closing a notarized certificate certifying that all monthly common expenses and charges of the condominium association are paid to date. This certificate is commonly referred to as a "6(d) Certificate".
SALE PROCEEDS
You should be aware that your net sales proceeds will be available to you after recording the deed to your buyers at the registry of deeds in your county. Typically, your check will be available the morning after your closing unless time allows us to make necessary arrangements to get all papers recorded on the day of your closing. If obtaining your check the same day of your closing is important to you, be sure to call to discuss this issue specifically. We will make every reasonable effort to accommodate you and arrange courier service.
IDENTIFICATION
Please remember to bring your drivers license or other photo identification to the closing. Our Lenders and Title Insurance companies require that we check the identification of the Buyers and Sellers to all transactions.
Commercial Real Estate
Our Commercial Real Estate Department represents financial institutions (both large and small) in documenting commercial and real estate credit arrangements ranging from Small Business Administration loans, middle market transactions to larger credits. Other transactions include the following areas:
Commercial Real Estate Loans
Construction Loans
Lines of Credit
Term Loans
SBA Loans
Asset-Based Loans
Law Offices of Flood & Favata
14 Winthrop Street
Marlborough, MA 01752