The loan policy does not protect the borrower.

The loan policy protects only the lender against loss, not the borrower. The borrower for a purchase loan can obtain title insurance to protect their own interests, and it protects the borrower for as long as they own the property. The borrower can obtain from the closing attorney a list of the matters that an owner’s title insurance policy covers.

Title insurance is issued after an examination of the public records. But even the most thorough search cannot absolutely assure that no title defects are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be found in a search.

A few of such title problems that can cause loss of title or create an encumbrance on title are:

• False impersonation of the true owner of the property
• Forged deeds, releases of wills
• Undisclosed or missing heirs
• Instruments executed under invalid or expired power of attorney
• Mistakes in recording legal documents
• Misinterpretations of wills
• Deeds by persons of unsound mind
• Deeds by minors
• Fraud

To protect possibly the most important investment you’ll ever make- the investment in real estate.

A lender goes to great lengths to minimize the risk of lending money for the loan it makes on real estate. It checks on the borrower’s credit to determine their ability to repay the loan; and the lender seeks assurance that the quality of the title to the property it is loaning money on meets with the lender’s satisfaction; and that a title insurance policy protecting the lender’s loan will be issued to it by a title insurance company.

Recording fees are “fees” that are paid to the Commonwealth of Massachusetts for the “privilege” of recording documents that relate to real estate transactions. Some of the recording fees are as follows:

Deed $125.00
Mortgage $175.00
Discharge of a Mortgage $75.00
Declaration of Homestead $35.00

A title search is an examination of all public records that involve title to a specific property. The search is conducted to verify that there are no liens or other claims against the property other than those scheduled to be paid off by a new loan or a purchase money mortgage and/or subordinated by a new loan. A title search also confirms that all former owners have formally given up their ownership rights to the property.

How to buy a new home or property in Massachusetts:

When you find the house of your dreams, the first document you will sign is called the Offer To Purchase. This document is usually prepared with the assistance of your real estate broker, and if you are not working with a real estate broker, you should ask a lawyer for assistance. The Offer To Purchase will set forth the basic terms on which you are basing your “offer” to purchase the property. The Offer To Purchase will include:

• The amount you are offering to pay for the property
• The amount of the deposit you are giving with the Offer
• The time when you will sign the Purchase and Sale Agreement and the additional amount you will give as your deposit.
• Any conditions, upon which your Offer is conditional, such as:
  • Inspection of the property
  • Obtainment of mortgage financing
  • Review of the Purchase and Sale Agreement by your attorney

Once the Offer To Purchase has been accepted, usually the next step is to have a home inspection. As part of the process you have started in purchasing your new home, having a good and thorough home inspection is probably one of the most important aspects of this process. You should look for a qualified inspector, one who is going to be looking out for your best interests. You should always attend the inspection, and not be afraid to ask questions. If you see something during the inspection, that the inspector did not comment on, speak up and ask whatever is on your mind. Remember, this is “your” purchase, and “you” are the one who is making this investment. If you have questions or concerns, ask about them, and if you are not satisfied with the answer(s), ask again.

After the home inspection, sometimes there are issues that the Seller needs to take care of. Depending on how you negotiate the resolution of these issues and the extent of them, you can resolve them by different ways, such as:

• The Seller agrees to repair or replace the item
• The Seller agrees to give you a credit
• The Purchase price is reduced
• The Seller agrees to give a “closing costs credit”.

The next step involves the Purchase and Sale Agreement. This is a very important document as it sets forth the obligations of both the Seller and the Buyer with respect to completing the purchase. You should seek the assistance of an experienced real estate lawyer in negotiating and finalizing this Agreement.

Many times prior to even signing the Offer To Purchase, a Buyer will have obtained a “Pre-Approval” letter from a mortgage lender that indicates the amount of a mortgage you appear to be qualified for. It is important to note that the Pre-Approval letter is not a mortgage commitment. However, many Sellers will not seriously consider an Offer To Purchase their property unless they see “something” from a mortgage lender that the potential Buyer is “qualified” to purchase their property.

Whichever mortgage lender you have decided to use, it is usually in your best interests to make sure that the attorney you have chosen to assist you with the Purchase and Sale Agreement is also going to be the attorney who handles the mortgage closing for your lender. Since the “attorney” is your choice, it gives you more control over the closing process and you will feel more comfortable knowing that “your attorney” and not some stranger is handling the closing process for you.

At the closing, which normally will take place either at the closing attorney’s office or at the Registry of Deeds for the county where the property is located, the following will occur:

• The closing attorney will have a lot of documents that you will sign. Perhaps the most important is the “promissory note” that sets forth the amount of money you are borrowing, the interest rate, the date that your first mortgage (note) payment is due, the date of the last payment (15, 20, or 30 years later!), the amount of your interest and principal payment on the note.
• One of the documents you will sign is commonly referred to as the HUD or Settlement Statement. This is the document that explains the amount of money you need to bring with you to the closing, in order to complete your financial obligation for the purchase. Many times, lenders will require that you “escrow” real estate taxes and homeowners insurance payments.
• If the house you are buying is going to be your primary residence, then you should discuss with your attorney the filing on your behalf, of a Declaration of Homestead. It costs only $35.00 to record it and it helps protects your home up to $500,000.00 from creditors. For those over 65 years of age, the exemption is even higher.

In Massachusetts, documents related to real estate transactions are recorded in the Registry of Deeds for the county in which the real estate is located.

Here is a list of the cities and the towns and their counties wherein they are located:

City/Town

County

Abington	Plymouth
Acton	Middlesex
Acushnet	Bristol
Adams	Berkshire
Agawam	Hampden
Alford	Berkshire
Allston (see Boston)	Suffolk
Amesbury	Essex
Amherst	Hampshire
Andover	Essex
Aquinnah (formerly Gay Head)	Dukes
Arlington	Middlesex
Ashburnham	Worcester
Ashby	Middlesex
Ashfield	Franklin
Ashland	Middlesex
Athol	Worcester
Attleboro	Bristol
Auburn	Worcester
Avon	Norfolk
Ayer	Middlesex
Back Bay (see Boston)	Suffolk
Barnstable	Barnstable
Barre	Worcester
Beacon Hill (see Boston)	Suffolk
Becket	Berkshire
Bedford	Middlesex
Belchertown	Hampshire
Bellingham	Norfolk
Belmont	Middlesex
Berkley	Bristol
Berlin	Worcester
Bernardston	Franklin
Beverly	Essex
Billerica	Middlesex
Billerica Center	Middlesex
Blackstone	Worcester
Blanford	Hampden
Bolton	Worcester
Boston	Suffolk
Bourne	Barnstable
Boxborough	Middlesex
Boxford	Essex
Boylston	Worcester
Braintree	Norfolk
Brewster	Barnstable
Bridgewater	Plymouth
Brimfield	Hampden
Brockton	Plymouth
Brookfield	Worcester
Brookline	Norfolk
Buckland	Franklin
Burlington	Middlesex
Buzzards Bay (see Bourne)	Barnstable
Byfield (see Newbury)	Essex
Cambridge	Middlesex
Canton	Norfolk
Carlisle	Middlesex
Carver	Plymouth
Cataumet (see Bourne)	Barnstable
Charlemont	Franklin
Charlton	Worcester
Chatham	Barnstable
Chelmsford	Middlesex
Chelsea	Suffolk
Chesire	Berkshire
Chester	Hampden
Chesterfield	Hampshire
Chicopee	Hampden
Chilmark	Dukes
Clarksburg	Berkshire
Clinton	Worcester
Cohasset	Norfolk
Colrain	Franklin
Concord	Middlesex
Conway	Franklin
Cummington	Hampshire
Dalton	Berkshire
Danvers	Essex
Dartmouth	Bristol
Dedham	Norfolk
Deerfield	Franklin
Dennis	Barnstable
Dighton	Bristol
Dorchester (see Boston)	Suffolk
Dorothy Pond (see Millbury)	Worcester
Douglas	Worcester
Dover	Norfolk
Dracut	Middlesex
Dudley	Worcester
Dunstable	Middlesex
Duxbury	Plymouth
East Bridgewater	Plymouth
East Brookfield	Worcester
East Dracut (see Dracut)	Middlesex
East Freetown (see Freetown)	Bristol
East Longmeadow	Hampden
East Millbury (see Millbury)	Worcester
Eastham	Barnstable
Easthampton	Hampshire
Easton	Bristol
Edgartown	Dukes
Egremont	Berkshire
Erving	Franklin
Essex	Essex
Essex Falls (see Essex)	Essex
Everett	Middlesex
Fairhaven	Bristol
Fall River	Bristol
Falmouth	Barnstable
Fitchburg	Worcester
Florida	Berkshire
Foxborough	Norfolk
Framingham	Middlesex
Franklin	Norfolk
Freetown	Bristol
Gardner	Worcester
Gay Head (now known as Aquinnah)	Dukes
Georgetown	Essex
Gilbertville (see Hardwick)	Worcester
Gill	Franklin
Gloucester	Essex
Goshen	Hampshire
Gosnold	Dukes
Grafton	Worcester
Granby	Hampshire
Granville	Hampden
Great Barrington	Berkshire
Greenfield	Franklin
Greenlodge (see Dedham)	Norfolk
Groton	Middlesex
Groveland	Essex
Hadley	Hampshire
Halifax	Plymouth
Hamilton	Essex
Hampden	Hampden
Hancock	Berkshire
Hanover	Plymouth
Hanson	Plymouth
Hardwick	Worcester
Harvard	Worcester
Harwich	Barnstable
Hatfield	Hampshire
Haverhill	Essex
Hawley	Franklin
Heath	Franklin
Hingham	Plymouth
Hinsdale	Berkshire
Holbrook	Norfolk
Holden	Worcester
Holland	Hampden
Holliston	Middlesex
Holyoke	Hampden
Hopedale	Worcester
Hopkington	Middlesex
Hubbardston	Worcester
Hudson	Middlesex
Hull	Plymouth
Huntington	Hampshire
Ipswich	Essex
Jamaica Plain (see Boston)	Suffolk
Kenwood (see Dracut)	Middlesex
Kingston	Plymouth
Lake Pleasant (see Montague)	Franklin
Lakeville	Plymouth
Lancaster	Worcester
Lanesborough	Berkshire
Lawrence	Essex
Lee	Berkshire
Leicester	Worcester
Lenox	Berkshire
Leominster	Worcester
Leverett	Franklin
Lexington	Middlesex
Leyden	Franklin
Lincoln	Middlesex
Littleton	Middlesex
Longmeadow	Hampden
Lowell	Middlesex
Ludlow	Hampden
Lunenburg	Worcester
Lynn	Essex
Lynnfield	Essex
Malden	Middlesex
Manchester	Essex
Mansfield	Bristol
Marblehead	Essex
Marion	Plymouth
Marlborough	Middlesex
Marshfield	Plymouth
Mashpee	Barnstable
Mattapoiset	Plymouth
Maynard	Middlesex
Medfield	Norfolk
Medford	Middlesex
Medway	Norfolk
Melrose	Middlesex
Mendon	Worcester
Merrimac	Essex
Methuen	Essex
Middleborough	Plymouth
Middlefield	Hampshire
Middleton	Essex
Milford	Worcester
Millbury	Worcester
Millis	Norfolk
Millville	Worcester
Milton	Norfolk
Monroe	Franklin
Monson	Hampden
Montague	Franklin
Monterey	Berkshire
Montgomery	Hampden
Monument Beach (see Bourne)	Barnstable
Mt. Washington	Berkshire
Nahant	Essex
Nantucket	Nantucket
Natick	Middlesex
Needham	Norfolk
New Ashford	Berkshire
New Bedford	Bristol
New Braintree	Worcester
New Marlborough	Berkshire
New Salem	Franklin
Newbury	Essex
Newburyport	Essex
Newton	Middlesex
Norfolk	Norfolk
North Adams	Berkshire
North Andover	Essex
North Attleborough	Bristol
North Billerica (see Billerica)	Middlesex
North Brookfield	Worcester
North Cambridge (see Cambridge)	Middlesex
North Carver (see Carver)	Plymouth
North Easton (see Easton)	Bristol
North End (see Essex)	Essex
North Grafton (see Grafton)	Worcester
North Hatfield (see Hatfield)	Hampshire
North Reading	Middlesex
North Hampton	Hampshire
Northborough	Worcester
Northbridge	Worcester
Northfield	Franklin
Norton	Bristol
Norwell	Plymouth
Norwood	Norfolk
Nutting Lake (see Billerica)	Middlesex
Oak Bluffs	Dukes
Oakdale Manor (see Dedham)	Norfolk
Oakham	Worcester
Old Town (see Newbury)	Essex
Orange	Franklin
Orleans	Barnstable
Otis	Berkshire
Oxford	Worcester
Palmer	Hampden
Paxton	Worcester
Peabody	Essex
Pelham	Hampshire
Pembroke	Plymouth
Pepperell	Middlesex
Peru	Berkshire
Petersham	Worcester
Phillipston	Worcester
Pinehurst (see Billerica)	Middlesex
Pittsfield	Berkshire
Plainfield	Hampshire
Plainville	Norfolk
Plymouth	Plymouth
Plympton	Plymouth
Princeton	Worcester
Provincetown	Barnstable
Quincy	Norfolk
Randolph	Norfolk
Raynham	Bristol
Reading	Middlesex
Rehoboth	Bristol
Revere	Suffolk
Richmond	Berkshire
Rochester	Plymouth
Rockland	Plymouth
Rockport	Essex
Rowe	Franklin
Rowley	Essex
Royalston	Worcester
Russell	Hampden
Rutland	Worcester
Salem	Essex
Salisbury	Essex
Sandisfield	Berkshire
Sandwich	Barnstable
Saugus	Essex
Savoy	Berkshire
Scituate	Plymouth
Seekonk	Bristol
Sharon	Norfolk
Sheffield	Berkshire
Shelburne	Franklin
Sherborn	Middlesex
Shirley	Middlesex
Shrewsbury	Worcester
Shutesbury	Franklin
Somerset	Bristol
Somerville	Middlesex
South Hadley	Hampshire
Southhampton	Hampshire
Southborough	Worcester
Southbridge	Worcester
Southwick	Hampden
Spencer	Worcester
Springfield	Hampden
Sterling	Worcester
Stockbridge	Berkshire
Stoneham	Middlesex
Stoughton	Norfolk
Stow	Middlesex
Sturbridge	Worcester
Sudbury	Middlesex
Sunderland	Franklin
Sutton	Worcester
Swampscott	Essex
Swansea	Bristol
Taunton	Bristol
Templeton	Worcester
Tewksbury	Middlesex
Tolland	Hampden
Topsfield	Essex
Townsend	Middlesex
Truro	Barnstable
Tyngsborough	Middlesex
Tyringham	Berkshire
Upton	Worcester
Uxbridge	Worcester
Wakefield	Middlesex
Wales	Hampden
Walpole	Norfolk
Waltham	Middlesex
Ware	Hampshire
Wareham	Plymouth
Warren	Worcester
Warwick	Franklin
Washington	Berkshire
Watertown	Middlesex
Wayland	Middlesex
Webster	Worcester
Wellesley	Norfolk
Wellfleet	Barnstable
Wendell	Franklin
Wenham	Essex
West Boylston	Worcester
West Bridgewater	Plymouth
West Brookfield	Worcester
West Newbury	Essex
West Springfield	Hampden
West Stockbridge	Berkshire
West Tisbury	Dukes
Westborough	Worcester
Westfield	Hampden
Westford	Middlesex
Westhampton	Hampshire
Westminster	Worcester
Weston	Middlesex
Westport	Bristol
Westwood	Norfolk
Weymouth	Norfolk
Whatley	Franklin
Whitman	Plymouth
Wilbraham	Hampden
Williamsburg	Hampshire
Williamstown	Berkshire
Wilmington	Middlesex
Winchendon	Worcester
Winchester	Middlesex
Windsor	Berkshire
Winthrop	Suffolk
Woburn	Middlesex
Worcester	Worcester
Worthington	Hampshire
Wrentham	Norfolk
Yarmouth	Barnstable