Borrowers’ Information

  1. INSURANCE: Your bank will require you to obtain Hazard or Homeowners Insurance on the property you are buying or refinancing. You will need to provide a fire and extended coverage insurance policy or binder for such insurance in an amount at least equal to your new mortgage amount or 100% of the replacement cost of all insurable buildings and other improvements on the land, whichever is less. The lender will let you know in your commitment letter who the insurance policy or binder will have listed on the policy.
  2. FLOOD INSURANCE: If the premises is located within a specially designated federal (HUD) flood hazard area (Zone A) then flood insurance is a mandatory requirement and you would have to provide a flood insurance policy application together with a paid receipt for the next year’s premium at or before the closing. Please note that if the premises is located within zone B, flood insurance is not required although it is highly recommended.
  3. TITLE INSURANCE: A lender’s policy of title insurance is required for all transactions that are financed by a lending institution at your expense. If you do not already own title insurance, you may wish to purchase an owner’s policy of title insurance at the time of closing. If so, our office can certify the title to a title insurance company. The premium for an owner’s policy of title insurance can be quoted to you through our office. An owner’s title insurance policy provides coverage for numerous matters which are not covered by the standard attorney’s certification of record title and which are not discoverable by searching the land records. Typical examples of such matters include forged documents, the incapacity of a grantor, undisclosed or missing heirs, missing signatures, mistakes in recording, unknown creditors and problems involving access to the land.
  4. CONDOMINIUM INSURANCE: If the mortgage involves a condominium unit, the Lender will require a Certificate of Insurance from the insurance carrier for the condominium naming you and the Association. You may be required to purchase additional insurance if the insurance company does not provide 100% replacement cost coverage.
  5. OTHER CONDOMINIUM REQUIREMENTS: A “6 (d)” certificate stating that there are no unpaid common charges to the condominium association as of the date of closing must be produced at that time. This certificate is obtained from the trustees or managers of the condominium and must be in the form prescribed by law.
  6. OUR CERTIFICATE OF TITLE: The following matters apply only if the transaction involves a purchase of real estate with a dwelling designed to be occupied by not more than four families to be occupied in whole or in part by one or more of you. Closing Attorneys charging a title fee are required to certify to you that the title to the premises meets certain standards
  7. SMOKE DETECTOR AND CARBON MONOXIDE COMPLIANCE: Under the provisions of Massachusetts General Laws, Chapter 148, Section 26E a current certification from the city or town fire department relative to the installation of smoke detectors and carbon monoxide detectors must be obtained on any transfer of property. You may be required to execute a certification at the closing that you have inspected the installation of the smoke detectors and are satisfied as to compliance with this law. The Sellers is under the obligation to obtain this certificate and should bring it to closing with them. The foregoing may not apply in certain commercial transactions.
  8. WATER, SEWER AND ELECTRICITY: The seller will need to obtain a final reading of the water meter so that all outstanding water and sewer bills may be taken care of at the closing. If you are purchasing a condominium unit, it is likely that water and sewer charges are included in the monthly condominium fee. In that case, a final water and sewer bill is not required. If electricity is provided by a municipal light plant, the sellers should obtain a final electric reading.
  9. HOMESTEAD: If the property you are buying is your primary residence, you can further protect your investment in your home by establishing a Declaration of homestead. This declaration protects against the seizure of your home by most types of creditors up to $500,000 in equity in your home.