Dec 6, 2017 | Taxes, Uncategorized
By Patrick Crowley of Hershman, Fallstrom & Crowley, Inc.
There is a Massachusetts income tax credit that many senior citizens may not be aware of. Senior citizens who are homeowners or renters and meet income and other eligibility requirements may be entitled to a Massachusetts refundable tax credit of $1,080 even if they have no Massachusetts taxes due or Massachusetts filing requirement. Senior citizen homeowners may claim the credit if they paid more than 10% of their total income for real estate taxes and water and sewer charges. If you’re a renter you can count 25% of the rent paid as real estate taxes. Those seniors who have no filing requirements due to their limited income should look into filing a Massachusetts income tax return next spring as they may be due a refund of up to $1,080 for 2017. In addition, it’s not too late to file a 2014, 2015 or 2016 tax return to claim the credit if you fall into this category. For those seniors out there who have filed tax returns and weren’t aware of this credit, make sure you determine whether you are eligible for the credit in 2017. If you are, you should look into amending your previous 3 years tax returns to claim the refunds that you are due. http://www.hfctax.com/
Read more of the Tax Minute, daily, here
Nov 21, 2017 | Uncategorized
There are several advantages to being a cash buyer that simplify the process of purchasing a piece of real estate. However, there are additional issues that cash buyers need to be aware that can impact the purchase of property. One of those issues is the importance of a mortgage survey or plot plan.
You may be wondering what a plot plan is, do you really need one and is there an additional cost for a plot plan? The simple answer to these questions are that a plot plan is an engineering diagram or drawing of the estimated boundaries of the property. The plan is created by a Professional Land Surveyor. The plan will indicate the precise location of any major structures on a particular property, including any houses, porches, sheds and in some case driveways and access points. It will also show the approximate shape of a lot as well and the approximate location of structures as they relate to boundary line setbacks.
In some cases where there are multiple lots, the plan may also show the location of each particular lot in relation to the other.
The information disclosed by the plan is important, especially when there may be encroachments, missing lots, or the lots or the property description is not what YOU think it is. A title exam conducted as part of the closing will reveal the owners of the property and any encumbrances or defects that may be of record. A title exam does not show the location of any of the buildings or structures on located on the land.
A conventional bank or mortgage lender will always require a Mortgage Survey as a condition to lending any money on property. A cash purchaser is not required to obtain a plot plan as a condition of the purchase, even though it is highly recommended. The bottom line is that a plot plan may reveal additional information about a property you may not know about. Having a plot plan conducted as part of your due diligence process can save you thousands of dollars by disclosing critical issues before you close.
The cost of a residential mortgage survey is around $150.00, depending on the size of the lot and structures located on the lot.
If you are paying cash for a real estate purchase, contact our office and we can guide you through the process and answer any questions you may have.
Nov 13, 2017 | Real Estate Definitions, Real Estate Tips
By Attorney Nicholas Thalheimer
Generally, when declarations of trusts are recorded at the Registry of Deeds, the trust document will identify and name successor trustees. However, some trust documents do not name successor trustees. This becomes problematic when the original trustee(s) of the trust passes away and there is no successor trustee named or appointed either by the deceased trustee, while they are still living, or in the body of the trust document itself. In circumstances where a trust is unrecorded, the only evidence of the existence of the trust may be a recorded Certificate of Trust, which is acceptable. However, if the trustee is deceased and there is nothing of record signed by the original trustee(s) in the form of a certificate naming, or identifying, successor trustees effectively the trust has no trustee of record.
For example, when an unidentified successor trustee alleges that he or she is the successor trustee and attempts to convey, or take other actions related to, real estate owned by the trust, there is a question of whether he or she is truly the successor trustee. This is commonly referred to as the “Stranger to Title” issue, meaning that simply recording a self-serving trustee certificate executed by that successor trustee is not sufficient to evidence that he or she is, in fact, the successor trustee. This raises a question as to true ownership of the property and authority of the successor trustee to act.
In this example, without recorded evidence of a named successor, being appointed so by the current trustee of record, or by the beneficiaries of the trust (if the terms of the declaration of trust allows for this), there is no way of confirming legitimacy of the person claiming to be a successor trustee. Without clear evidence identifying a successor trustee, anyone could claim to be a trustee and attempt to convey the trust property.
Trust Attorneys who draft these documents commonly argue that identification of a successor trustee doesn’t need to be recorded. However, from a title insurance perspective, there must be a valid written instrument in the chain of title that evidence a successor trustee.
Another common problem we often encounter are trustee deeds for consideration of a dollar or some other nominal consideration. Property of a trust cannot be conveyed for nominal consideration. Title insurance companies view this as a possible breach of fiduciary duty. Often you have to look to the body of the trust to determine whether or not a trustee has the power to gift or whether or not they have the ability to make nominal gifts or convey for nominal consideration because they are, in fact, as trustees, fiduciaries for the beneficiaries.
Luckily, there are solutions to these issues. An affidavit of the attorney who drafted the trust can be recorded along with the applicable provisions of the trust to prove the identity of the trustee and their enumerated powers or authority. Oftentimes the alleged successor trustee does not have the original trust or a copy of it. However, if the attorney who drafted trust has a copy, that copy or select provisions of it, along with an affidavit stating the identity of a successor trustee can be recorded.
If there is a successor trustee, the trust, itself, should contain language about how to appoint a successor trustee. Usually, the process is left to the direction of the beneficiaries. But this can be an issue as well where there is no clear identification of the beneficiaries. Most trusts are drafted with a reference to a schedule of beneficiaries. However, that schedule of beneficiaries is not usually recorded. The same attorney that drafted the trust or the original trustees may, have the schedule of beneficiaries.
Under that set of circumstances, the issue can sometimes be resolved by recording a document supporting the alleged successor trustee’s assertion that he or she is, in fact, the successor trustee. It all depends on the language of the trust.
The bottom line is that, as conveyancing attorneys, we have to rely on what is recorded in the chain of title to determine who the record owner is and what powers they have, or may not have. In cases where the property is held in trust, we cannot rely on self-serving statements of alleged successor trustees. This is the case whether the trust is recorded or not. We must a see a clear nexus between the purported trustee and the trust. And if a conveyance is made by the trustee for nominal consideration their power to do so must be clearly stated in the recorded title. Few trusts contain provisions for gifting or transferring title for nominal consideration and it is usually limited to estate planning or inter-family transfers.
Jun 20, 2017 | Home Buyer Tips, Home Buying Tips, Selling Real Estate, Selling Your Home
Thinking about buying or selling a home on your own? Consider all of the steps you’ll personally have to complete on your own. It is overwhelming. Don’t go it alone. Let us introduce you to one of our many highly qualified and experienced Realtor partners. Call David today: 978-728-5104.
Jun 14, 2017 | Uncategorized
While companies may have spam filters and antivirus software, spam and phishing emails can still slip through employee inboxes. Email recipients are the most critical element in preventing an attack. Here are some tips on how to identify the authenticity of a questionable email.
Incorrect Grammar/Spelling/Text Body
Many phishing emails contain misspellings. Some of these messages have been poorly translated from other languages. Additionally, you will want to pay attention if the time or date appears in the message body of an email. If the email contains the date format of DD/MM/YY, 24-hour time or coordinated universal time (UTC,) it’s likely that the email’s point of origin generated outside of the United States.
Email Format/Absence of Logos/Plain Text Email
Most legitimate messages will be written with HTML. It should be a mix of text and images. A poorly constructed phishing email may show an absence of images. This includes the lack of the company’s logo. If the body of an email is only an image as text, it’s possible that it is illegitimate. Outlook blocks showing images by default. If the email is all plain text and looks different than what you’re used to seeing from a frequent sender, you may want to contact the sender directly in a new email or phone call.
Urgent Request for Personal Information
One tactic that is commonly used by hackers is to alert you that you must provide and/or update your personal information about an account (e.g., Social Security number, bank account details, account password). Phishers will use this tactic to drive urgency for someone to click on a malicious URL or download an attachment aiming to infect the user’s computer or steal their information.
Suspicious Attachments
High-risk attachments file types include: .exe, .scr, .zip, .com and .bat. Spam filters will generally do a good job of quarantining those formats. Most companies commonly send and receive .zip, .doc, .docx, .xls, .xlsx, .ppt, .pptx and .pdf. However, a malicious sender can implant devious code in those formats as well. Once the attachment is opened, the computer is already compromised. Take caution if you have sent an email that has an attachment and the sender is questionable. You will want to verify the legitimacy of the email first. Next, you will want to examine the context of why the attachment is being sent.
Links in the Email
A common practice is to avoid blindly clicking on links in emails. Outlook allows you to hover over a link before clicking on it. If the link in the body of the email is different than what Outlook hovered preview reports, it is not legitimate. Even if it seems legitimate, open a new browser window and type the URL directly into the address bar. If you’ve clicked on a link, a phishing website will look identical to the original. However, your system may already be compromised. If you’re work email is connected to your phone, you will want to take extra precaution.
Use Work Email for Work Purposes Only
Employees should avoid using their work email address for personal signups. These include social media websites or customer loyalty/ reward programs.
Reprinted with permission of the American Land Title Association.
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