In Massachusetts, an attorney must represent the Lender in a mortgage closing transaction. It is also the recommended practice for New Hampshire transactions.
In the purchase or sale of real estate it is also common for each party to have their own attorney to represent their
Our office provides full-service real estate attorneys representing Lenders, Buyers, and Sellers.
The role of the Buyer’s attorney is similar to that of the Lender’s attorney in that both are concerned with obtaining a clear and marketable title for their client. The Buyer’s attorney has the addition responsibility of handling the negotiations with the Seller and the Seller’s attorney. The Buyer’s attorney negotiates the Purchase and Sale agreement on behalf of the Buyer and advises the Buyer as to what documents will be needed for closing and reviews the terms of the Buyer’s loan with them.
Specifically, the Buyer’s attorney:
- Reviews the offer and purchase and sale agreement and negotiates changes related to inspection issues with Seller’s attorney
- Discusses options for how to hold title with client Discusses terms, conditions, and contract dates with the Buyer’s Lender to ensure that deadlines and conditions are satisfied
- Reviews the HUD settlement statement prepared by the Lender’s attorney to ensure closing costs and adjustments between the Buyer and the Seller are correct
- Attends closing with the Buyer’s and reviews all paperwork including mortgage, note, and other documents with Buyer
The Seller’s attorney’s role is to make sure the sale goes smoothly by dealing with any title issues and handling any negotiations for Seller, including;
- Preparing the offer and Purchase and Sale Agreement and negotiating any changes with the Buyer’s attorney
- Preparing the deed from the Seller to the Buyer
- Resolving any title issues that are discovered through the Lender attorney’s title search including obtaining missing discharges or mortgage assignments, missing death certificates, and a myriad of other title issues that could arise, in many cases the Seller is not even aware of the title problems before the title is searched
- Attending the closing and reviewing all Seller’s documents
- Reviewing the HUD settlement statement, prepared by the Lender’s attorney to insure all closing costs ad adjustments are correct
The main function of the Lender’s attorney is to protect the Lender’s interest by insuring that the title is clean and marketable. In order to accomplish this, the Lender’s attorney:
- Orders the title exam and works with the seller’s attorney to resolve any title issues that are discovered
- Orders a Municipal Lien Certificate from the city/ town where the property is located to check for past due taxes and water and sewer charges on the property
- Orders a plot plan for the property that outlines the lot dimensions
- Coordinates with all parties involved to schedule the time and location of the closing
- Records the new deed, mortgage, and any other relevant documents at the appropriate Registry of Deeds
- Pays off the existing mortgage and any liens from the Seller’s proceeds
- Files IRS disclosures related to the transaction
- Certifies clean title to the Lender and issues title insurance policies to the Lender and the new owner
Note: The same attorney may represent both the Lender and the Buyer in a purchase transaction.