Once an Offer to Purchase is accepted in a Massachusetts home purchase, there is a fairly well-established track of how the next steps will play out for a Buyer in the Greater Boston area. Below is outline of the those steps from Offer through the Purchase and Sale Agreement and then on to the closing itself.
1. The seller’s agent or attorney will draft the Purchase and Sale Agreement (P&S). This is the more binding legal document that is the official contract to purchase the home. It is a “cookie cutter” type standard document.
2. Your real estate will review the P&S with you and make a few edits and add some of my own language to protect you. The attorneys generally take 24-48 hours of back and forth before arriving at the final contract that best protects you.
3. If anything comes about at the home inspection, your real estate agent will negotiate with the Sellers and any agreement reached will be included in the P&S.
4. The P&S is typically signed ten days or so after the offer. At this time, you will need to get your agent your final deposit check. The total deposit will be held by the Seller’s Real Estate Brokerage and will be applied toward the purchase price of the home at closing. Should you default on the contract and not close, this deposit would be kept by the seller.
5. But, you are typically protected by the Mortgage Contingency clause that will be in the P&S. This clause is HUGELY important. It is an “out” clause for you to get the deposit back if you are unable to secure a commitment from your lender for the mortgage. In order to exercise this clause, you must first apply for the mortgage by the specified date in this clause. And if there is an issue with obtaining the mortgage commitment, you must notify the Seller by the contingency date. Do not let this come down to the last minute. Typically, if the commitment is not yet available by the date, the date can be extended by mutual agreement. The key is to get your loan officer everything they need so you won’t need to exercise this clause. But take comfort that it there in a worst-case scenario.
6. The appraisal will be conducted between P&S and closing to ensure the home is valued by the lender at the sales price.
7. The day before the closing or the morning of, you will have the opportunity to conduct a “walk-through” of the home. This is your chance to make sure the home is in the same condition as promised in the P&S and that it is clean, the appliances still work, etc etc. Your agent will arrange this with you.
8. At least 3 days before the closing, either the closing attorney or the lender’s team will get you the Consumer Disclosure, which is the final breakdown of the costs to purchase the home. At this point, you will have the final amount needed that you will need to bring to closing. That amount will either need to be wired to my office or presented in the form of a certified check. The number may change slightly within those last 3 days for final adjustments, but it will be quite accurate.
9. Depending on the various parties involved (you, Seller, Agents, Attorneys) the closing will likely take place at the Registry of Deeds or the office of the real estate closing attorney. Typically, the buyer and seller meet at the same time and place, but that is not required.
10. You will receive the keys to the property at the closing. There may be an hour or two delay until the transaction is “official” before you may enter the property. Please let your agent and real estate lawyer know if you have any specific timeframes such as movers, etc.
About the author: The above Real Estate information on Massachusetts Settlement Agent was provided by Timothy Sherman, an active attorney in the real estate law field. Tim can be reached via email at [email protected] or by phone at 781-664-4936. Attorney Sherman has helped people close on their homes in many Massachusetts cities and towns for the last 13+ Years.
Thinking of buying, selling or refinancing your home? I have a passion for Real Estate and love to share my legal expertise!
I handle closings throughout the South Shore and Greater Boston Area such as: Boston, Braintree, Canton, Cohasset, Dartmouth, Dedham, Duxbury, Fairhaven, Hanover, Hingham, Marshfield, Milton, Nantucket, Newton, Norwell, Plymouth, Quincy, Walpole, Wellesley, Westwood, Weymouth and Wrentham.
