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| Why
do I need a plot plan? A registered surveyor must complete an inspection plan of the property. It is important to note that this plan is a “tape survey” and not an “instrument survey”. A tape survey is completed with a tape measure and not a transit; therefore, the tape survey has a degree of error. It should not be used for the installation of fences or walls or any other purpose that would require a high degree of accuracy. The purpose of the tape survey is to give an indication whether there may be an encroachment of a building over the lot line. The surveyor also certifies to the lender that the existing structures meet the setback requirements of the local zoning by-laws. I prepaid my homeowner’s insurance for one year. Why are you collecting insurance escrow at the closing? The amounts collected at closing are put into your escrow account set up with your lender to be applied toward next year’s insurance bill. This initial deposit covers the period until your first payment is due and then over the course of the year, you will pay monthly into the escrow account and when the bill becomes due, there will be enough money to the premium in full. When is my first tax bill due? Why is there a tax adjustment at closing? Massachusetts uses a fiscal year running from July 1 to June 30 for tax purposes. (for example, fiscal year 2009 runs from July 1, 2008 to June 30, 2009), Taxes are due either semi-annually (May 1 and November 1) or quarterly (February 1, May 1, August 1 and November 1). An adjustment will be made between the buyer and seller at the closing and the next tax bill due will be the responsibility of the buyer. When is my first mortgage payment due? Generally, at the closing, you pay interest from the closing date to the first of the following month. Your first mortgage payment would then be due on the first of the next month. For example, if you close on January 15, 2009, you pay interest up to February 1, 2009 and your first mortgage payment would be due on March 1, 2009. I am buying property. What do I need to bring to the closing? All buyers must bring a picture identification as many of the documents will be notarized. You will need to bring a bank check (payable to yourself) for the remaining monies due on the purchase price plus closing costs. You will need an insurance binder for homeowner’s insurance that lists you as well as the lender as insured parties along with a paid receipt for the first year’s premium. Also, any conditions that the lender may require on their commitment letter should be brought to the closing. I am selling property. What do I need to bring to the closing? Prior to the sale, the seller should contact the closing attorney’s office to inform the attorney of the name and account numbers for all mortgages securing the property so that payoffs can be ordered. It is not advisable to make a payment on the mortgage or for municipal liens within one week before closing as the payments will not be reflected in the attorney’s payoff statements. All sellers must bring picture identification to the closing since many of the documents will be notarized. In addition, sellers will need a deed to the new owners, smoke detector/carbon monoxide certification from the fire department, a septic inspection from a licensed septic inspector, final water and/or sewer readings, a certificate from your homeowner’s association or condominium association stating that all dues are paid in full (if applicable). Make sure you bring all keys and automatic garage door openers to the property as well as any paperwork relating to appliances, etc. that you may wish to turn over to the buyers. |