Purchase Closing Information

1. INSURANCE - At the time of closing, please bring with you a fire and extended coverage insurance policy or binder for such insurance in an amount at least equal to your new mortgage amount or 100% of the replacement cost of all insurable buildings and other improvements on the land, whichever is less. IF YOU ARE GOING TO RELY ON THE 100% REPLACEMENT COST AMOUNT AS SUFFICIENT INSURANCE, THEN THE POLICY OR BINDER MUST STATE THAT 100% REPLACEMENT COST IS IN EFFECT. The insurance policy or binder must name all of the persons who will hold title to the property. (c) Your letter of commitment may require a paid receipt for the next year's premium. If this is the case please be sure to bring the receipt to the closing. Please ensure that your Insurance Agent includes on your binder your new lwnders' loss payable endorsement clause. If your Insurance Agent has any questions regarding this clause they may contact our office.

2. FLOOD INSURANCE - If the premises is located within a specially designated federal (HUD) flood hazard area (Zone A) then flood insurance is a mandatory requirement and you must provide a flood insurance policy application together with a paid receipt for the full first year's premium at or before the closing. Please note that if the premises is located within zone B, flood insurance is not required although it is highly recommended.

3. RENT LOSS INSURANCE - If this transaction involves a loan on investment premises then rent loss insurance may be required and an appropriate binder to that effect will be required at or prior to closing. You should check with the Bank for applicability of rent loss insurance to you.

4. TITLE INSURANCE - A lender's policy of title insurance is required for this transaction which we will obtain at your expense. Unless you notify our office otherwise prior to closing we will issue you an Owner's Title Insurance Policy and an additional cost to you. The premium for an owner's policy of title insurance can be quoted to you by calling our office. Notify our office immediately if you do not want title insurance coverage for yourself, or if you have any questions. Click here to learn more about title insurance.

5. CONDOMINIUM INSURANCE - If the mortgage involves a condominium unit, we will require a Certificate of Insurance from the insurance carrier for the condominium naming you and the Association. The language naming the Bank must be in the form set forth in Paragraph 1 above. Please note that you may be required to purchase additional insurance if the insurance company does not provide 100% replacement cost coverage.

6. OTHER CONDOMINIUM REQUIREMENTS - A "6 (d)" certificate stating that there are no unpaid common charges to the condominium association as of the date of closing must be produced at that time. This certificate is obtained from the trustees or managers of the condominium and must be in the form prescribed by law. You should be sure that the seller produces such a document at or before the closing. A closing will not occur without this certificate.

7. MANNER IN WHICH TITLE WILL BE HELD - Click here for an explanation of some options for how to hold title to real estate. Please telephone our office and inform us of how you would like to take title to the property. This information should be provided to us as quickly as possible since many documents which we prepare require this knowledge. Failure to provide this information in a timely fashion could delay your closing.

8. OUR CERTIFICATE OF TITLE - The following matters apply only if the transaction involves a purchase of real estate with a dwelling designed to be occupied by not more than four families to be occupied in whole or in part by one or more of you. We are required to certify to you that the title to the premises meets the stated standard. Our certification to you should not be construed as establishing an attorney/client relationship between you and our office. The services we render are only on behalf of the mortgage lender, and we cannot advise or counsel you relative to the transaction. If you wish to obtain legal advice regarding the quality of the title or with regard to some other aspect of the transaction, you should retain independent counsel.

9. SMOKE DETECTOR COMPLIANCE - We also call your attention to the provisions of Massachusetts General Laws, Chapter 148, Section 26E, a copy of which is enclosed herewith. You may be required to execute a certification at the closing that you have inspected the installation of the smoke detectors and are satisfied as to compliance with this law. You should contact the sellers and insure that they have obtained, and bring with them, a current certification from the city or town fire department relative to the installation of smoke detectors. If you are unsure of the applicability of this law, please check with your counsel or contact our office. A closing will not occur without this certificate.

10. FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT OF 1980, AS AMENDED - We also call to your attention the Foreign Investment in Real Property Tax Act of 1980 as amended. The provisions of this law place special requirements for tax reporting and withholding on the parties to a real estate transaction under certain circumstances as set forth in the Law. You should seek the advice of your attorney or accountant concerning the effect of this Act on you and this transaction. The closing attorney for this firm cannot and will not provide you with information, advice or opinions regarding the Act and its impact on the transaction.

11. WATER, SEWER AND ELECTRICITY - You should ask the sellers to obtain a final reading of the water meter so that all outstanding water and sewer bills may be taken care of at the closing. If you are purchasing a condominium unit, it is likely that water and sewer charges are included in the monthly condominium fee. In that case, a final water and sewer bill is not required. If electricity is provided by a municipal light plant, the sellers should obtain a final electric reading.

12. NEW CONSTRUCTION - If you are purchasing new residential construction please check with the builder/seller and ensure that the they will have a final Certificate of Occupancy (CO) issued by the municipality. A closing will not occur without this certificate.

13. PHOTO IDENTIFICATION - Please have a photo copy of your driver's license or state photo ID at closing.

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