Real Estate Closing Lawyer
Here’s Why You Need a Lawyer at a Real Estate Closing
Here is a sad tale about some would-be Massachusetts homebuyers … and what can happen if you don’t have a lawyer to protect your rights at a real estate closing.
A married couple negotiated the sale of a home in Marshfield and plunked down $15,275 as a deposit. They arranged a mortgage for the home. Everything looked great.
Then they got to the closing, and it all fell apart.
It turned out that in the fine print of the mortgage agreement, the lender had specified as a condition of the mortgage that the seller had to sign a “title affidavit.” This is an agreement that if there were ever any problem with the title of the property, the seller would be responsible for dealing with it.
But at the closing, the seller refused to sign. The seller’s attitude was that if he signed, he could potentially be on the hook for a lot of trouble down the road, yet he wasn’t getting anything in return for signing. So why do it?
It’s customary for sellers to sign such affidavits, but they’re not legally required. The couple looked through their purchase and sale agreement with the seller, but there was nothing in the agreement that required the seller to sign a title affidavit.
Because the seller refused to sign, the lender refused to put up the money for the mortgage. Because the lender refused to put up the money, the couple couldn’t complete the sale. And because the couple couldn’t complete the sale, the seller walked away … and kept the couple’s deposit.
In other words, the couple didn’t get a house and the whole episode cost them $15,275.
The couple went to court, but a Superior Court judge said there was nothing wrong with what the seller or the lender did.
Moral: For most people, buying a home is the biggest investment of their lives. It only makes sense to have a lawyer on your side that can understand all the complexities of contracts and protect your rights.
There are some people in Massachusetts who have been saying that lawyers aren’t necessary in real estate deals. Don’t believe it.
In a real estate sale, the seller looks out for the seller. The bank looks out for the bank. You need an attorney, whose only job in the whole transaction is to look out for you.
Contact a Massachusetts Real Estate Lawyer
For more information on buying a first home in Massachusetts, or if you are looking for a real estate lawyer in Massachusetts, please contact Rob D. Stewart. If you prefer, you can also telephone our offices in Boston seven days a week at toll free 866-414-0400.
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Ryan P.B. Kelly is an associate and a member of Parker Scheer's Corporate and Real Estate Practice Groups. Mr. Kelly's corporate practice involves the formation and organization process, governance, business finance, strategic planning, the structure, terms and negotiation of various contracts, management and ownership succession, and a wide variety of other legal issues that arise in the course of conducting a business and planning for its future.