Do I Need A Real Estate Lawyer To Sell My Home In Massachusetts?
The decision to sell a home can be one of the most significant decisions we face during our lives, for both financial and emotional reasons. Long before the closing takes place, it makes sense to consult with a real estate attorney to get an understanding of what a seller must do to ensure a smooth transaction. Lack of planning can lead to a last minute crisis which could delay or prevent the closing.
Often, sellers list their home for sale with the assistance of a real estate agent, or broker. Brokers provide a host of valuable services to sellers: advice on pricing, identification of comparable properties, coordination of the showings, and serving as the go-between during negotiations. However, brokers sometimes involve themselves with three aspects of the transaction which could create issues, or even liability, for a seller. These aspects relate to the representations of the seller and the preparation of the offer to purchase and the purchase and sale agreement.
Massachusetts real estate law imposes an obligation that sellers disclose certain information to a potential homebuyer. Certain other information, however, must only be disclosed if the buyer specifically asks for it, such as whether the basement gets wet in a rainstorm. Sellers should be aware of their rights and obligations as it applies to disclosing information about their home, and whether they have an obligation to investigate certain information, for instance the presence of any underground oil storage tanks. Disclosures by sellers are often contained in a prepared form entitled “Seller’s Disclosure Regarding Condition of Property.” While the broker typically provides the blank form to the seller to complete, Parker|Scheer suggests that a seller consult a real estate attorney prior to delivering the completed form to a buyer.
The second form often prepared by the broker is the Offer to Purchase. Typically, a seller is presented an offer on a pre-printed form with the specifics written in (price, dates, mortgage amount, etc.). Sellers are advised to consult with a real estate attorney before signing the acceptance, even if the price seems fair. Though the offer form may appear to be fairly informal and cursory, it establishes many important terms that are not easy to change after the fact. Visitors to this article are encouraged to read the link on this website entitled “The Offer To Purchase-Know How It Should Read Before You Shop For A New Home,” to learn more about the binding aspects of the offer form.
The third form frequently prepared by the broker is the Purchase and Sale Agreement, which firmly establishes all of the binding terms of the parties’ agreement. While the so-called “standard form” provides an outline of the contract terms, no experienced real estate attorney would ever advise a seller to sign without modifying certain elements of the “standard terms” and including additional terms and clarifications in a separate document, or rider. Again, visitors to this article are encouraged to read the link on this website entitled “Purchase and Sale Agreements in Massachusetts: FAQ For Sellers,” to learn more about the binding aspects of the offer form.
Finally, between the date of signing the Purchase and Sale and the closing date, there are additional issues a seller must be aware of to avoid complications or delays at closing. The seller has the obligation to obtain and record discharges of mortgages on the property, whether taken by the seller or a prior owner. Even after a mortgage loan is paid off, steps must be taken to obtain and record the proper documentation to be filed or recorded at the registry of deeds. A real estate conveyancing attorney working with a seller prior to closing can review the title and advise a seller of any missing documentation that must be obtained. Failure to do so may cause a buyer to delay the closing or hold money from the seller’s proceeds. This could create severe consequences to a seller who is relying on the closing proceeds to purchase another property.
Parker|Scheer, LLP counsels our clients to contact a real estate attorney early in the process of negotiating the sale of property to clearly understand and avoid the potential risks involved.
Contact a Massachusetts Real Estate Lawyer
For more information on real estate law, or if you need 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.