By John J. Torrone, Esq.,

Massachusetts is known as an “attorney only” state when dealing with real estate transactions. This means that only attorneys are deemed qualified to perform real estate closings.  Any non-attorney performing a real estate transaction in Massachusetts is breaking the law.  

Some other states permit real estate transactions to be performed by non-attorneys, such as a notary public.   However, a non-attorney notary public can only verify that you are the person who is signing the documents provided by the lender and that you are not being pressured into signing the documents.  On the other hand, an attorney will review all the documents and answer any questions you may have about the meaning and effect of the documents.

When you hire an attorney to represent you in the purchase or sale of real estate, the attorney will typically review or draft a Purchase and Sale Agreement for you. This document sets forth the obligations of all the parties involved in the real estate transaction and the time frames for performance of each obligation.  As with any contract, there are many common pitfalls that can be avoided by having your attorney review or draft the Purchase and Sale Agreement.  Your attorney will make you aware of your obligations relative to the purchase or sale of the real estate. Failure to comply with the terms of the Purchase and Sale Agreement can have disastrous consequences, including the loss of your deposit or the loss of a buyer in a sale.  Your attorney can easily help you avoid these problems.

Most, if not all lenders require that a title search be completed prior to the closing on real estate.  If the title search reveals a problem, such as a building encroaching on your property, or a mistake on a previous deed, your attorney is qualified to perform the additional work necessary to resolve these issues.  Some title problems may not be easily discovered, even by the best title examiners.  Such title problems not easily discovered are referred to as, “hidden hazards”, which may result in either the loss of your property or an expensive lawsuit, which could occur months or even years after the purchase of the property.  

Your attorney can help you avoid hidden hazard issues, and provide you with title insurance to protect your investment from such event, by having the knowledge to ask for the appropriate information and assurances from the seller. While there are many hidden hazards, some examples are the following:

•    Undisclosed or missing heirs;
•    Deeds from persons of unsound mind;
•    Deeds by minors;
•    Errors in tax records; and,
•    An undisclosed divorce.

By having an attorney represent you, you will receive great piece of mind in knowing that you have done everything possible to protect your investment in real estate.

The information in this article is meant to provide a basic explanation of the importance of having competent representation for a real estate closing.  The reasons set forth above are just a couple of the many reasons why hiring an attorney for your real estate transaction is highly recommended.