Feb 14, 2025 | Buying Real Estate, Consumer Tips, Home Buyer Tips, Home Buying Tips, Home Mortgage, Home Mortgage Tips, Home Seller Tips, Home Selling Tips, Home Tips, Housing Market, Investment Properties, Mortagage Tips, Mortgage, Mortgage Lenders, Mortgage Tips, News, Real Estate, Real Estate Agent Information, Real Estate Tips, Real Estate Trends, Realtors, Selling Real Estate, Selling Your Home
Below is our summary of significant legislative development that impacts our industry. The Massachusetts General Court has introduced a bill titled “An Act protecting consumer rights in purchasing safe and habitable homes.” This bill, presented by Representative Brian M. Ashe and others, aims to enhance consumer protection by ensuring that buyers have the right to conduct home inspections when purchasing residential properties. Below, I have provided a detailed summary of the key provisions and implications of this bill for real estate professionals.
The bill aims to ensure that buyers have the right to home inspections when purchasing residential properties, including houses and condominiums.
An inspection involves a licensed home inspector evaluating various components of the property, such as heating, cooling, plumbing, electrical systems, structural components, foundation, roof, and more.
- Buyers have the right to have the property inspected within 10 days of the seller accepting their offer, unless a different period is agreed upon in writing.
- Sellers cannot condition the acceptance of an offer on the buyer waiving their right to an inspection, except in certain cases like auctions or sales to close family members.
Every offer to purchase must include a clause informing the buyer of their right to an inspection and the conditions under which they can revoke the offer if significant defects are found.
- Sellers must comply with the inspection rights and cannot accept offers that waive these rights unless specific exceptions apply.
- Violations by sellers can result in damages to the buyer and civil penalties.
An inspection involves a licensed home inspector evaluating various components of the property, such as heating, cooling, plumbing, electrical systems, structural components, foundation, roof, and more.
This bill is designed to protect consumers by ensuring they have the opportunity to identify any significant issues with a property before finalizing the purchase.
The legislation has several implications for for real estate agents, brokers and Realtors:
Disclosure and Compliance:
- Real estate agents must ensure that all offers to purchase include the required language informing buyers of their right to a home inspection.
- Agents must be aware of the 10-day inspection period (or longer if agreed upon) and ensure that this is communicated clearly to both buyers and sellers.
- Agents cannot advise or encourage sellers to condition the acceptance of an offer on the buyer waiving their right to an inspection, except in specific cases like auctions or sales to close family members.
- They must ensure that sellers do not accept offers from buyers who indicate an intention to waive the inspection right, unless the exceptions apply.
Legal and Financial Implications:
- If a seller violates the provisions of this bill, the real estate agent could be implicated in any resulting legal actions or penalties. This includes potential civil penalties and damages to the buyer.
- Agents need to stay informed about the legal requirements and ensure their practices comply with the new regulations to avoid liability.
- The bill enhances consumer protection, which may increase buyer confidence in the real estate market. Agents can use this as a selling point to assure buyers that their rights are protected.
- Agents should be prepared to guide buyers through the inspection process and help them understand their rights and options if significant defects are found.
Overall, real estate professionals will need to adapt their practices to ensure full compliance with the new regulations, prioritize transparency, and protect the interests of their clients. This may involve additional training and adjustments to standard operating procedures.
Statutory Offer to Purchase Language
According to the bill each offer to purchase a residential structure or residential condominium unit shall include the following language:
“Buyer is entitled under section 115 of chapter 93 of the General 33 Laws to choose to have the premises inspected at Buyer’s expense within 10 days, or longer as Seller and Buyer may agree in writing, of Seller’s acceptance of Buyer’s offer to purchase. Unless one of the exceptions in said section 115 applies, neither Seller nor Buyer may make acceptance of this offer to purchase contingent upon waiver, limitation or restriction of Buyer’s right to choose to obtain a home inspection. Should Buyer choose to have the premises inspected, if it is the inspector’s opinion that the premises contain serious structural, mechanical or other defects and if the repair of such defects would cost Buyer in the aggregate more than the amount indicated by the Buyer herein ($________), then Buyer shall have the option of revoking this offer to purchase by written notice to the Seller or Seller’s agent within 5 business days of the date of the inspection, or longer as Seller and Buyer may agree in writing. Such notice shall be accompanied by a copy of the inspector’s opinion and a copy of cost estimates obtained by Buyer.”
Understanding and complying with this new legislation is crucial for all real estate professionals. By staying informed and adapting practices, we can better serve our clients and uphold the integrity of our industry. If you have any questions or need further clarification on this bill, please do not hesitate to reach out to one of our Real Estate Attorneys.
Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire
“I would highly recommend David as a closing attorney. I have known David and have been using his office for many years. David’s professionalism when dealing with me, my closing department and most especially my clients has been always exemplary.”
SENIOR LOAN OFFICER, SHAMROCK FINANCIAL SERVICES
“The Law Office of Attorney David R. Rocheford, Jr. is by far the most exceptional real estate law office that I have had the pleasure of working with. The professionalism is by far second to none.”
SENIOR LOAN OFFICER, SALEM FIVE MORTGAGE SERVICES
“Attorney David Rocheford has provided settlement and title services for me and Greenpark Mortgage several years. He has assisted all of my clients, including my family and friends with mortgage closings. Always providing excellent service. Reliable and trustworthy!”
Jan 15, 2025 | Buying Real Estate, Consumer Tips, Home Buyer Tips, Home Buying Tips, Home Closings, Home Mortgage, Home Mortgage Tips, Home Seller Tips, Home Selling Tips, Homebuyer Tips, Homeowner Tips, Real Estate Tips, Selling Real Estate, Selling Your Home
A lot of confusion arises from myths and misconceptions about what happens during closing. Don’t worry—today, we’re clearing up five of the most common myths surrounding home closings to ensure you have a smooth and stress-free experience.
The Closing Process is Fast and Simple
While some may think closing is a quick, simple formality, it’s actually an involved process. There are plenty of legal documents, paperwork, and financial steps that need to be finalized before everything is official. Expect the closing process to take some time—more than just a few minutes—and be sure to review all documents thoroughly.
You Have to Pay All Closing Costs Upfront
Many first-time buyers worry about paying hefty fees upfront. While there are indeed closing costs, such as title insurance and appraisal fees, you don’t always have to pay everything out of pocket at once. In some cases, closing costs can be rolled into your mortgage, or you may negotiate with the seller to cover part of these expenses.
You Can’t Back Out of the Deal After Signing the Contract
It’s a big commitment, but the truth is, you *can* back out of the deal under certain circumstances—like if you find issues during the home inspection or if the appraisal doesn’t come in as expected. There are contingencies in place to protect buyers, so be sure to understand your rights before moving forward.
You Must Attend Closing in Person
The idea of spending hours in an office, signing stacks of papers in person, is intimidating to many. However, in today’s digital age, remote closings are becoming more common. Depending on the lender and state regulations, you might be able to complete the process online or at a remote location, making it much more convenient.
The Closing Date is Set in Stone
Although the closing date is agreed upon early in the process, life happens, and delays can occur. From paperwork snafus to last-minute negotiations, don’t be alarmed if the date shifts a little. Your closing agent will keep you updated on any changes and help you navigate the process smoothly.
The home closing process doesn’t have to be stressful. By debunking these myths, you can walk into your closing day with confidence and the right knowledge. With the right team by your side, like The Law Office of David R. Rocheford, JR., P.C., you can enjoy this exciting time in your home-buying journey without any unnecessary worries.
Did you know that as a homebuyer, you have the legal right to choose your own closing attorney? Many buyers aren’t aware of this right, assuming the lender or realtor has control over who represents them during the closing process. However, selecting a trusted closing attorney is crucial for ensuring that your legal rights are protected, and that the transaction proceeds smoothly. A knowledgeable attorney helps manage critical tasks like reviewing closing documents, coordinating title insurance, and addressing any legal issues that may arise. By choosing the right attorney, you’re taking an active role in safeguarding your interests and ensuring a seamless home purchase experience. For more information on the closing attorney’s role and how it can impact your transaction, read our full article!
Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire
“I would highly recommend David as a closing attorney. I have known David and have been using his office for many years. David’s professionalism when dealing with me, my closing department and most especially my clients has been always exemplary.”
SENIOR LOAN OFFICER, SHAMROCK FINANCIAL SERVICES
“The Law Office of Attorney David R. Rocheford, Jr. is by far the most exceptional real estate law office that I have had the pleasure of working with. The professionalism is by far second to none.”
SENIOR LOAN OFFICER, SALEM FIVE MORTGAGE SERVICES
“Attorney David Rocheford has provided settlement and title services for me and Greenpark Mortgage several years. He has assisted all of my clients, including my family and friends with mortgage closings. Always providing excellent service. Reliable and trustworthy!”
Nov 15, 2024 | Buying Real Estate, Home Buyer Tips, Homebuyer Tips, Real Estate, Real Estate Agent Information, Real Estate Tips
Buying a home is one of the most exciting and important decisions you’ll ever make. It’s a significant milestone, but also a complex process with a lot of moving parts. Whether you’re a first-time homebuyer or a seasoned homeowner, it’s crucial that you feel confident every step of the way—and that includes your closing.
When you’re nearing the end of the home-buying process, one aspect that’s often overlooked is the role of your closing attorney. Here’s the good news: In Massachusetts and New Hampshire, you have the right to choose your own closing attorney. Yes, you have the power to select someone who will be there to guide you, protect your interests, and ensure a smooth closing.
What Exactly Does a Closing Attorney Do?
A closing attorney plays a key role in making sure everything goes smoothly at the finish line. They handle a lot of important details to make sure your home purchase is legitimate, legally sound, and properly executed. Here’s a quick overview of their role:
- Reviewing and explaining documents: They’ll go through the purchase agreement, mortgage documents, and other legal paperwork to make sure everything is in order.
- Title review: They’ll ensure that the home you’re buying has a clear title, meaning there are no legal claims against the property.
- Disbursement of funds: The attorney ensures that all the funds are distributed correctly at closing, including payments to the seller, real estate agents, and any other parties involved.
- Notarizing documents: They will handle any necessary notarization of documents to make the closing official and legal.
- Guiding you through the closing: They’ll be there to explain the process, answer your questions, and help you understand the terms of your agreement.
Why Should You Choose Your Own Attorney?
In many cases, lenders or real estate agents may suggest a particular attorney or title company to handle the closing. While it’s not uncommon for this to happen, it’s important to understand that you are not required to use their choice of attorney.
Why is this so important? Because when it comes to the closing of your home purchase, you want someone who has your best interests in mind—not the interests of a lender or seller. Your closing attorney’s role is to protect you throughout the entire process, and that includes making sure the paperwork is accurate, the title is clear, and that no last-minute issues arise.
If you feel more comfortable with someone else, or if you have a trusted attorney you’ve worked with before, it’s your right to bring them into the process.
How to Find a Closing Attorney
If you’re wondering how to find a qualified closing attorney, don’t worry—you’ve got options. Start by asking your real estate agent for recommendations. Many agents work closely with experienced attorneys and can point you in the right direction. Alternatively, your local bar association often offers a lawyer referral service, which can help you find a reputable attorney in your area who specializes in real estate law.
It’s also a good idea to interview a few attorneys before making your decision. You’ll want to ask about their experience with real estate transactions, their approach to the closing process, and what their fees are. It’s important that you feel comfortable and confident in your choice.
Why You Should Care About Your Closing Attorney
Ultimately, the closing attorney is there to safeguard your interests. You’ve likely spent months—or even longer—searching for the perfect home, securing financing, and navigating the complexities of the real estate market. The last thing you want is to rush through the closing process without fully understanding the terms of your deal.
By selecting your own attorney, you can rest easy knowing that you’ve got someone on your side, advocating for your best interests, and ensuring everything is done right.
Don’t Let Anyone Rush You
It’s easy to get caught up in the excitement and feel pressure from various parties involved in the transaction. But remember: the closing is your moment, and you deserve to feel confident about every decision, including who represents you.
Take a moment to select an attorney who will guide you through the process with transparency, integrity, and expertise. After all, buying a home is a big investment—and you deserve to have peace of mind that everything is being handled professionally.
Take Control of Your Home Purchase!
As you move toward closing on your new home, remember that you have the right to choose your own closing attorney in Massachusetts and New Hampshire. This is an important part of the process, and it’s essential that you feel fully supported and protected. If you’re unsure where to start, reach out to your real estate agent or local bar association for recommendations. The right closing attorney can make all the difference in ensuring your home-buying experience is a smooth and successful one.
Want to learn more about the home-buying process or need recommendations for trusted closing attorneys? Reach out today—we’re here to help you every step of the way!
Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire
“I would highly recommend David as a closing attorney. I have known David and have been using his office for many years. David’s professionalism when dealing with me, my closing department and most especially my clients has been always exemplary.”
SENIOR LOAN OFFICER, SHAMROCK FINANCIAL SERVICES
“The Law Office of Attorney David R. Rocheford, Jr. is by far the most exceptional real estate law office that I have had the pleasure of working with. The professionalism is by far second to none.”
SENIOR LOAN OFFICER, SALEM FIVE MORTGAGE SERVICES
“Attorney David Rocheford has provided settlement and title services for me and Greenpark Mortgage several years. He has assisted all of my clients, including my family and friends with mortgage closings. Always providing excellent service. Reliable and trustworthy!”
May 13, 2024 | Buying Real Estate, Mortgage Guidelines, Mortgage Lenders
The FHA is insuring a greater percentage of loans than during any time in recent history. In 2006, it insured roughly 5 percent of the purchase mortgage market. Today, it insures one-quarter. “Going FHA” is more common than ever before — but is it better?
The answer — like most things in mortgage — depends on your circumstance.
Like its conforming counterpart, an FHA-insured mortgage is available as a fixed-rate loan and as an adjustable-rate one. Payments are made monthly and come without prepayment penalties.
That’s where the similarities end, however, and decision-making begins. For homeowners and buyers across Worcester , FHA mortgages carry a different set rules as compared to conforming loans through Fannie Mae or Freddie Mac that can render them more — or less — attractive for financing. (more…)
Feb 12, 2024 | Buying Real Estate, Mortgage Lenders, Realtors, Selling Real Estate
The definition of loan fraud is simple. According to the F.B.I. loan fraud is any material misstatement, misrepresentation or omission relied upon by a mortgage underwriter or lender to fund a loan.
The definition does not make any exception for white lies, half truths, fibs or creative facts. It says any material misstatement, misrepresentation or omission. In most cases if you are involved in a real estate loan transaction, as a borrower, real estate agent, attorney or some other party, and you have to ask yourself or someone else “Is that loan fraud?” 95% of the time the answer is “yes.”
In most cases when I am asked about whether or not something is loan fraud the conversation usually goes something like this: (more…)
Jan 10, 2024 | Buying Real Estate, Mortgage Lenders, News, Realtors
YOUR FIRST HOME. Purchasing one is a rite of passage that most non-homeowners dream of. Besides the intangible benefits, homeownership lets you build equity, and is the single biggest tax break available to most consumers. Here’s our look at some smart strategies for getting in the door.
First: Pay Off Your Debt
It’s a common mistake for home-buyers-to-be: They focus on saving as much money as possible for a down payment instead of paying off other debts.
How Much Can You Afford?
The answer to that is a function of two things: How much you can borrow and how much of a down payment you can muster. As a rule of thumb, your annual mortgage payment, taxes and homeowner’s insurance shouldn’t exceed 28% of your gross income.
Types of Loans
Now you’re ready to start shopping around for the right loan. A first-time home buyer with a steady job and good credit can buy a home with less than a 20% down payment.
Questionable Credit
Worried you don’t have perfect credit? You may yet qualify for a loan insured by the Federal Housing Administration, or FHA. These government-insured loans are issued with even more lenient credit criteria. You can also put down as little as 3.5% for an FHA loan. A portion of closing costs may be used to meet the 3.5% cash requirement.
Down-Payment Assistance Programs
Still having trouble coming up with that down payment? Each year HUD gives states and municipalities money to distribute to low- and moderate-income families for housing.
Read more: Tips for First-Time Home Buyers – Spending – Deals – SmartMoney.com
