[BUYING AND SELLING REAL ESTATE IN THE UNITED STATES - MASSACHUSETTS]
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KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER MASSACHUSETTS LAW I. STANDARD FORMS OF AGREEMENTS
results) from the town in which the home is located. C. Commercial: In addition to the inspections performed by residential buyers, commercial buyers also usually obtain a survey, an environmental review, and a use and zoning/permitting analysis. IV. FORMS OF OWNERSHIP A. Residential Property is usually held in a nominee trust, an estate planning trust, or an individual’s own name. Joint owners may take title as: 1. Tenants in Common (each own 50%); 2. Joint Tenants with rights of survivorship (they own the property jointly and the survivor ends up with 100%); or 3. Tenants by the Entirety if the owners are a married couple (they each own the undivided whole of the property). B. Commercial Property may be held as follows: 1. As the Owners pursuant to the forms set forth in A above, (highly unusual for liability purposes) 2. General Partnership/Joint Venture 3. Limited Partnership 4. LLPs 5. LLCs (most common) 6. Business Trusts 7. Business Corporations i. C corporation ii. S corporation
A. Offer to Purchase sets forth b uyer’s offer of price, date for closing, contingencies for inspections, financing etc. and date for signing a formal purchase and sale agreement. Seller may accept or reject. B. Purchase and Sale Agreement sets forth the complete terms of the purchase and sale. C. Note : In Massachusetts, an Offer to Purchase may be enforced as a binding contract even if it contemplates the execution of a Purchase and Sale Agreement. II. BROKERS A. All brokers in Massachusetts whether they are working with the buyer or the seller represent the seller unless the buyer enters into a separate Buyer’s Broker or Dual Agency Agreement. B. Seller usually pays the broker’s commission unless negotiated otherwise. III. BUYER’S INSPECTIONS A. Residential: Prior to Closing, the buyer performs property inspections including inspection for structural issues, radon, asbestos, pest infestation or damage, title, and in certain rare circumstances, lead paint and underground storage tanks (for oil or propane). Buyers should also check the town/city building file on the property to make sure all alterations and renovations have been completed in compliance with permits and all permits are properly closed out. Buyer or its lender will also obtain a plot plan of the premises. B. Private Septic. If the property is on a private septic system (rather than municipal sewer), then seller has to provide buyer with a Title V inspection (with passing
ILN Real Estate Group – Buying and Selling Real Estate Series
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