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Buying Process Explained

Closing the Deal

The process of closing the sale can take between 30-60 days (or longer), a length of time necessary for a number of critical legal requirements to be met, including clearing the title, recording the deed, approving loan applications, allowing the lender to make a property appraisal, and to have the plot plan surveyed.

A) closing date will be set, at which time all the parties to the transaction must have completed their requirements to consummate the sale. The bank's attorney is responsible for conducting the closing, and will calculate and compute a number of financial requirements including at least some of the following:

  1. Bank attorney's fees, check with your lender to find out what these will be
  2. Recording fees for new deed and mortgage (approximately $60)
  3. Appraisal fee, which is approximately $250, and which is required by Massachusetts state law
  4. Credit report (approximately $50 each)
  5. Private Mortgage Insurance (required for purchases with less than 20% down payment
  6. Title search (often included in bank's attorney fees), and title insurance (approximately $1.50 per $1,000 of the mortgage amount)
  7. Survey/plot plan (approximately $150)
  8. Municipal Lien Certificate (approximately $25)
  9. Real estate tax adjustments and interim interest (depending upon the number of days/months left in the year)

Buyers are not required to hire an attorney to represent them in the closing transaction, but may choose to as a precaution against any potential problems. The bank's attorney has an obligation to ensure all legal requirements are met, but represents the bank only and not the buyer. A buyer's attorney can review all the documents to ensure your needs, as a buyer, have been fully met. Finally, the buyer should bring a number of items to the closing.

The buyer must present an insurance binder at the closing, covering the property for one full year.

The buyer should bring a certified check or bank check payable to him/herself for the closing costs and purchase price, less the amount of deposits and mortgage amount. The bank's attorney will give you an exact figure.

The buyer also should bring a checkbook in case there are any last minute adjustments, such as for fuel.