The Real Estate Bar Association has many good practice standards and tips for Home Buyers and Home Sellers of Massachusetts Real Estate. With any Purchase and Sale Agreement I work with I include language in the Agreement that the parties should adhere to those Practice Standards. That way if there is any dispute on certain issues we can refer to those REBA Standards for an answer.
The REBA Practice Standards helps me with a commonly asked question: As a Seller how do I estimate how much money I will net out of my Massachusetts Real Estate closing? What you net proceeds fairly easy to calculate.
1. Deduct off the broker’s commission you will be paying;
2. Don’t forget about state tax stamps. For every county except Barnstable and the Islands the tax rate is $4.56 per thousand of the purchase price. In Barnstable County the tax is $5.70 per thousand. Dukes and Nantucket Counties charge an additional 2% as a land bank fee. Please note that if you are selling in Massachusetts and moving to New Hampshire you will be hit with the aforementioned fee in Massachusetts and in New Hampshire you will be hit with a tax rate of $7.50 per thousand of the purchase price.
3. Now we should look at REBA Practice Standard No. 2 Recoding Charges to see what fees are paid by the Seller and what are paid by the Buyer.
In a nutshell the Seller pays for items needed to clear the title:
- Discharge of Mortgage
- Partial Release of Mortgage
- Release of Attachment
- Clerk’s Certificate
- Termination Statement
- Certificate of Corporate Good Standing
- Certificate of Corporate Legal Existence
- Waivers of Corporate Excise Tax Lien
- Condominium Master Deed & Plan
- 6(d) Certificate
- Certificate of Tax Title Redemption
- Certificate Dissolving Betterment
- Federal Tax Lien Release
- Massachusetts Tax Lien Release
- First Refusal Waiver
- Trustee Certificate
- Title Affidavit
- All other title-clearing instrument
The Buyer is responsible for the following items:
- Foreclosure Deed, Affidavit, Certificate of Entry and Judgment
- Mortgage and related security documents
- Municipal Lien Certificate
- Unit Deed and Unit Plan
- Declaration of Homestead
What are the general fees of these documents?
Declaration of Homestead: