Jul 16, 2024 | Around The Home
Spring has sprung and today is the first official day of summer. If you are finally finding time to tend your garden, don’t feel guilty — just get dirty!
In one June weekend, you can have your yard looking colorful and smelling sweet. All it takes is a shovel, a design idea and a knowledgeable trip to a greenhouse.
Whether a rose is your favorite or you know nothing about flowers, you can make you yard beautiful without being a professional landscaper. Below are several types of flowers that will have your garden looking gorgeous this summer and you blushing from all your neighbors’ compliments.
Snowdrift Rose – The perfumed petals of this vigorous plant will provide a pleasant scent to your outdoors. Also, the stems are nice and long for cutting and creating indoor arrangements.
Black-Eyed Susan – After these vivid yellow flowers have bloomed, cut them back in order to ensure a second round of blossoms.
Dwarf Sunflower – If you love the large varietal, but don’t have the room, consider this smaller cousin.
English Lavender – This dark blue and purple flower is a tough plant that does well in even the hottest of climates.
Hydrangea – To take up more space, these little shrubs produce beautiful white clusters of flowers that fade to shades of pink and green.
Marigold – These traditional crimson blooms grow low and spread quickly, which makes them the perfect plant for a flowerbed border.
Petunia – The newer varieties of these full-sun flowers are low maintenance because they self-clean. The old blooms drop off without you needing to prune.
Summersweet – If you have a shady spot, this pink or white plant with its gold colored leaves will have the space feeling vibrant.
Zinnia – These long-lasting yellow, red and orange flowers will bloom well into fall.
A rose can be red, violets are blue — but you don’t have to feel that way about your garden.
Take one weekend this month to tame your flowerbeds, introduce a few budding plants and enjoy their fragrant scents for the rest of the summer.
Jul 9, 2024 | Home Mortgage, Homeowner Tips
In the world of real estate transactions, the significance of acknowledgements cannot be overstated. Whether you’re a notary, a title examiner, or a real estate professional, understanding the requirements and potential pitfalls of acknowledgements is crucial. In this blog post, we’ll delve into the Massachusetts requirements for acknowledgements, explore common pitfalls to watch out for, and discuss the implications of fraudulent deeds and mortgages.
What is an Acknowledgement?
An acknowledgement is a formal statement by the grantor that the execution of the instrument was their free act and deed. This statement is essential in verifying the voluntary nature of the signature and ensuring the validity of the document. In Massachusetts, there are statutory definitions that provide a framework for acknowledgements, emphasizing the need for satisfactory evidence of identity and voluntary signing.
Requirements for Acknowledgements In Massachusetts, the acknowledgement process involves verifying the identity of the individual signing the document through satisfactory evidence, such as a current government ID with a photo. Additionally, the signatory must confirm that their signature was voluntarily affixed for the stated purposes within the document. Notaries and real estate professionals must be familiar with these requirements to ensure compliance and validity of the documents.
Pitfalls to Watch Out For
One of the common pitfalls in acknowledgements is the omission of the name of the person who appeared in the acknowledgement clause. This seemingly minor defect can have significant implications, leading to challenges in recording the deed or mortgage and potential issues in bankruptcy cases. Additionally, defects in acknowledgements can impact the marketability of title, posing challenges for sellers and buyers alike.
Entity Authority and Fraud Risks When dealing with deeds and mortgages involving entities, it’s crucial to ensure that the acknowledgement contains the necessary language to reflect the entity’s authority. Failure to do so can result in validity issues and potential challenges in the future. Moreover, the risk of fraudulent deeds and mortgages underscores the importance of thorough verification and due diligence in the acknowledgement process.
Acknowledgements play a vital role in real estate transactions, serving as a cornerstone for validating the voluntary nature of signatures and ensuring the integrity of documents. By understanding the Massachusetts requirements for acknowledgements, being vigilant of potential pitfalls, and addressing entity authority and fraud risks, real estate professionals can navigate transactions with confidence and uphold the validity and marketability of title.
In summary, acknowledgements are not just procedural formalities but essential safeguards in the realm of real estate, warranting careful attention and adherence to statutory requirements. By staying informed and proactive, professionals can mitigate risks and uphold the integrity of real estate transactions. If you have any questions at all about this subject or any other Massachusetts Real Estate legal matter, please give one of our Attorneys a call.
Jul 9, 2024 | Homeowner Tips, Mortagage Tips, Mortgage Lenders
In real estate transactions, the use of a power of attorney can be a critical tool, especially when the principal is unable to be physically present to sign documents. Understanding the nuances of power of attorney in real estate transactions is crucial for all parties involved. Here, we delve into the intricacies of power of attorney, shedding light on its types, considerations, and potential pitfalls.
Types of Power of Attorney
There are different types of power of attorney, each with its own implications. A general power of attorney grants broad authority to the agent, allowing them to act on behalf of the principal in almost all regards. On the other hand, a limited power of attorney is specific to a particular purpose or transaction, providing a narrow grant by the principal to an agent. Additionally, the durable power of attorney allows the agent to continue acting on behalf of the principal if they become disabled or incapacitated.
Key Considerations
When dealing with power of attorney in real estate transactions, specific granting clauses and signature blocks are crucial. It is essential to ensure that the power of attorney is durable to be valid for current transactions. Reviewing the entire document is also emphasized to ensure it grants sufficient authority for the intended actions.
Recording Requirements
Recording requirements for power of attorney documents are critical. The original document must be recorded at the registry of deeds where the land is located. It is noted that recording a copy is not sufficient, and the original document is essential for reliance on the power of attorney.
Common Issues and Red Flags
There are common issues to watch out for when dealing with power of attorney in real estate transactions. Self-dealing transactions and non-arms-length considerations can lead to potential title claims due to breaches of fiduciary duty by the agent. It is important to ask questions and vet the use of power of attorney to ensure its legitimacy.
By being aware of the types of power of attorney, considerations for its use, recording requirements, and common issues to watch out for, real estate professionals can navigate power of attorney transactions with confidence. Understanding the legal and ethical standards surrounding power of attorney in real estate is crucial for ensuring compliance and protecting the interests of all parties involved. If you have any questions at all about using Powers of Attorney in Massachusetts real estate transactions, please give one of our Attorneys a call.
Jun 19, 2024 | Housing Analysis, Real Estate
| By Zachary Greenfield, Esq., Underwriting Counsel, Stewart Title Insurance Company
According to a recent study by consulting and actuarial group Milliman for the American Land Title Association, from 2013 to 2022, title insurance underwriters handled more than 200,000 claims and incurred approximately $4.4 billion dollars in claims losses and related expenses, 21% of which resulted from fraud and forgery claims. While the average claim cost for matters not involving fraud or forgery was $26,328, the average cost of each fraud or forgery claim was approximately $143,000.
The study grouped claims into 11 categories. The top four categories were as follows:
| Category |
Description |
Percent of all claims |
| Basic Risk |
fraud, forgery, undisclosed heirs, marital rights, competency, etc. |
24% |
| Special Risks |
mechanics’ liens, subordination of prior risks, underwritten risks, etc. |
21% |
| Escrow and Closing Procedures |
improper instructions, improper payments, failure to make a payment, failure to complete post-closing duties, etc. |
13.70% |
| Examination and Opinion irregularities |
irregular omissions, unforeseen risks, etc. |
11.90% |
The remaining categories included “apparent non-covered claims” (8%); “endorsement, title plan, search and abstract claims” (7.8%); “taxes and special assessment claims” (7%); “survey-inspection/description matters” (5.2%); “typing or policy review” (0.9%); “stakeholder and interpleader cases” (0.3%); and “disputed procedure” (0.2%), including matters such as foreclosures and government forfeitures.
Notably, the study found that in addition to being the most expensive type of claim, the frequency of fraud and forgery claims is on the rise. Whereas those claims represented 19% of all basic claims from 2013 to 2020, that figure rose to a staggering 44% in 2022. It is therefore now more important than ever to be on the lookout for potential title fraud. Your Stewart underwriters are always available to review any situations that you think might involve fraud or forgery. In this context, we urge you to follow the old adage, “if you see something, say something.” To view the full study, follow this link: Recent Study – Fraud & Forgery Link |
Jun 19, 2024 | Housing Analysis, Real Estate
By Mark A. Jones, Assoc. Senior Underwriting Counsel, Stewart Title Insurance Company
Whenever reviewing title examinations, when we see a traditional recorded mortgage, we all know the process of getting the mortgage released of record. The payoff is ordered, funds are collected at closing, the funds are
mailed or wired to the lender, and the lender then sends the release (hopefully) to the Registry of Deeds for recording. In contrast, an equitable mortgage is not “recorded” at the Registry of Deeds. An equitable mortgage is an inchoate lien, similar to an estate tax lien, that needs to be identified by a title examiner or attorney looking at the registry and probate records. An equitable mortgage typically arises when a divorce agreement and/or a judgment divides the marital assets, leaving one spouse the owner of real estate, but obligates the other spouse to pay a certain sum of money as part of the asset division. As the name suggests, the equitable mortgage is an equitable concept whereby if one party doesn’t satisfy their obligations, the other party’s assets are encumbered by the unsatisfied obligations. The following are some typical examples of situations where an equitable mortgage might arise and what would be required to insure.
Fact pattern 1: Divorce Agreement states Husband shall convey property to Wife and the agreement provides no payment of any funds by wife to the Husband.
Curative action: None. No equitable mortgage has been created as Wife has no financial obligation to the Husband. A conveyance by the Husband to the Wife will release his interest.
Fact pattern 2: Divorce Agreement states Husband and Wife shall list the property for sale and split the proceeds with the Wife getting 60% of the proceeds and Husband gets 40% of the proceeds. Both signed a deed for consideration to a third party buyer who is now selling.
Curative action: None. Both parties to the divorce have signed a deed for consideration and there is no need to go behind the transaction to determine if the parties received the pro rata share.
Fact pattern 3: Divorce Agreement states Wife shall convey the property to the Husband and Husband shall pay Wife $50,000. Wife conveys property to Husband for $1.00. No evidence of payment is filed in the probate or the Registry of Deeds. Five years later Husband goes to sell the property.
Curative action: As the record title fails to disclose evidence that the Husband’s financial obligation to pay the Wife the $50,000, the Wife may have an equitable mortgage encumbering the title. In order to insure we would require record title evidence of payment or a release from the Wife. Record title evidence can be satisfied by filing evidence of satisfaction of payment with the probate court in the divorce proceeding or by recording satisfactory documents with the Registry of Deeds.
Fact pattern 4: Divorce Agreement states Wife shall convey the property to the Husband and Husband shall pay Wife $50,000. Wife conveys property to Husband for $1.00. No evidence of payment is filed in the probate or the Registry of Deeds. Thirty-Five years later Husband goes to sell.
Curative action: Likely none, but check with an underwriter. Barring any extraordinary circumstances, we would generally not require evidence of payment or release from the wife. Although the traditional mortgage expiration statute (Mass Legislature Chapter 260, Section 33) of 35 years doesn’t specifically apply to an equitable mortgage, as there is no actual recorded mortgage, enough time has passed since the divorce that we would likely be comfortable insuring the property in this situation.
The above fact patterns are examples of common situations we see with divorce agreements. When reviewing a title with a divorce in the chain an Attorney should always be aware of any potential equitable mortgages that may arise. To add to the confusion, we often see situations where the agreement and/or judgment outlines the division of the property and then the parties do something completely different. Most divorce situations require a case by case analysis.
