[BUYING AND SELLING REAL ESTATE IN THE UNITED STATES - MASSACHUSETTS]
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person. (G.L. c. 156D, §8.46). Corporate vote authorizing other officers may be recorded.
IX. OTHER CLOSING DOCUMENTS A. Residential Properties: Seller has to have a smoke/carbon monoxide inspection performed by the town/city fire department and provide a certification at Closing. B. Title V Inspection Certificate – if the property is on a private septic system. C. Buyer has to obtain a municipal lien certificate from the Town/City where the premises are located stating the current status of real property taxes payments and balances due. This certificate also advises if water and sewer charges are due. D. Residential Property – If the property is to be used as a principal place of residence, the buyer may want to consider filing a Homestead Exemption. E. Sales by a Corporation are subject to the seller’s procurement of a Tax Lien Waiver. The Commonwealth of Massachusetts has an inchoate lien on the real and personal property of a seller if the sale of the property constitutes a sale of all or substantially all of the seller’s assets in the Commonwealth and the waiver advises the buyer that the lien has been waived and all taxes have been paid. X. RECORDING REAL ESTATE DOCUMENTS A. Title Documents are recorded on a county basis in Massachusetts. In other states, title documents are recorded in the towns and city records. B. Unlike most other states in the United States, Massachusetts has two recording systems. 1. Registered Land. Some property is registered land whereby real estate documents are filed with the Registry District of the Land Court within each county in which the premises are
VII. FORM OF DEED A. The common deed in Massachusetts is the Quitclaim Deed whereby the Seller gives covenants as to Seller’s period of ownership only. VIII. CLOSING COSTS/ADJUSTMENTS A. Seller usually pays the transfer taxes due at the time of the conveyance to the Commonwealth of Massachusetts. The tax is $4.56 per $1,000 of sale proceeds. B. Note : In a few jurisdictions in Massachusetts the tax is higher. C. Note : In Nantucket and Martha’s Vineyard, there is an additional land bank tax that is paid at the time of conveyance. D. Buyer and Seller adjust for water, sewer, gas/oil, electricity, and taxes. In addition to the foregoing, if the property is commercial property, adjustments are also made for rents, third party operating expenses and common area maintenance expenses. E. Land that has been subjected to agricultural purposes may be subject to certain taxes and payments if the agricultural purposes are terminated. F. Withholding Tax – Foreign Seller - 10% of amount realized (subject to reduction in certain situations (i.e., maximum tax liability on disposition is less than amount required to be w/held; installment sales rule exception, l/c or bond is posted etc.) - Buyer becomes withholding agent and must remit by the 20th day of the date of transfer; file Form 8288 -
ILN Real Estate Group – Buying and Selling Real Estate Series
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