Although there is no requirement that you obtain title insurance for your house, you may want to consider it to protect your investment. You become the formal owner of a property when you buy a house and acquire the paper title the “deed” to it. You may unknowingly be purchasing any unaddressed claims on the property that are tied to the title of the property in addition to what you can see. You and your lender will want to make sure that no one has asserted rights to your property, which are commonly referred to as claims, liens, or encumbrances, before completing the acquisition. Title insurance is typically purchased as part of the closing process to transfer ownership of the property, and it protects both you and the lender against any problems or faults with the property’s title.
Who pays title insurance in MA?
Attorneys are needed to be present at the closing in Massachusetts. The bank’s attorney is required to conduct a title search at the Registry of Deeds and certify that the buyer has a good, clear, recordable, and marketable title. The fees for this test are paid by the buyer. Even though it covers the lender rather than the owner, the bank frequently obtains lender’s title insurance, which is paid for by the buyer. The buyer might purchase owner’s title insurance for his or her personal safety at the closing. Pulgini & Norton’s experienced title insurance attorneys can advise you on title insurance and title difficulties, as well as assist you with the closing of your real estate transaction.
Title insurance is a type of insurance that protects homeowners and their lenders from financial loss if certain issues occur over ownership rights in real estate. Attorneys search and certify each title to real estate during closing, but there are sometimes hidden title flaws that a comprehensive title search cannot disclose. The expense of fighting against claims covered by title insurance is also covered.
Most mortgage lenders require title insurance in the form of lender’s policies. They are covered by a single premium that is paid as part of the closing costs. Home buyers can also purchase owner’s title insurance plans. For as long as you or your heirs possess a parcel, these policies pay to correct certain title issues found at the last minute or after the sale.
If an heir of a previous owner comes forward after a sale, the title insurance company may launch a lawsuit against the heir in order to clear the title. Similarly, an erroneous boundary description, a fraudulent document, or a botched foreclosure will be covered by the owner’s policy. Adverse possession or prescriptive easements, faulty surveys, pre-existing violations of zoning regulations or restrictive covenants, and building permit violations are among concerns that an owner’s title insurance policy may cover.
When a problem arises, the title insurance company can either fix it at no cost to the policyholder or compensate the policyholder for the actual loss suffered, subject to deductibles, liability limits, and exclusions. If the fault is identified only when the property is being sold, the title insurance firm will normally agree to insure the future buyer or lender so that the transaction can proceed.
How do I find owner’s title policy?
There’s always the possibility that a homeowner will lose all of the documents linked with their closing for any reason. This isn’t completely hopeless, at least not in terms of your title policy. Contact your lender if you can’t find your Settlement Statement, Closing Disclosure, or other paperwork. Even if you don’t recall the name of your title insurance firm after years, your lender can assist you in obtaining a copy of your policy. Because your lender’s title insurance policy was purchased when the loan was granted, this is the case. While owner’s policies are optional, all mortgaged property purchases require a lender’s policy, so your lender can help you get the documents you need. A copy of your closing form is frequently kept on hand by lenders. Borrowers are usually able to acquire copies of both documents from the lender.
You’ll return to the title insurer with these documents to complete the process of acquiring a copy of your lost insurance.
What is the real estate transfer tax in Massachusetts?
The amount of the transfer tax is determined by the price of the property and its location. In Massachusetts, the standard transfer tax rate is $2.28 per $500 of property worth.
Some counties, however, levy additional transfer taxes. The combined state and county excise rate in Barnstable County, for example, is $2.85 per $500.
Excise stamps are purchased from the Registry of Deeds in the county where the property is sold to pay the tax. The stamps are then applied on the deed, certificate of sale, or transfer.
If a taxpayer fails to use enough excise stamps on a deed to cover the transaction, the state has three years to charge the excess tax. In addition, there will be an extra interest fee.
The Department of Revenue can levy the tax and penalties at any time if the taxpayer does not use any excise stamps at all on a deed.
Who owns Boston national title?
Boston National Title was created by John Keratsis in 2006 with the goal of demonstrating that the correct title services partner can have a beneficial impact on borrower experiences as well as the bottom line. We assist our clients expedite their real estate transactions, boost loan efficiency and profitability, and enhance their brand and reputation by combining creativity, innovation, and our whatever-it-takes service mentality.
BNT Facts & Figures:
- With direct relationships in the remaining eight states, we are licensed to deliver services in 42 states and the District of Columbia.
- Support all types of mortgage and real estate transactions, including refinances, purchases, private wealth, commercial, HELOCs, and reverse and default mortgages.
- More than 180 customers of all sizes and shapes: Lenders, both bank and non-bank, servicers, real estate firms, and law firms
- More than 200 title and settlement specialists are spread throughout 17 offices around the United States.
Underwriter Partners
Boston National’s long-standing relationships with seven underwriters provide us with the flexibility to handle a wide range of transactions, both large and small, and to always strive for ‘Yes!’
- The idea of title insurance expanded quickly across the country when the first title insurer was established in Philadelphia in 1876. Title insurers, on the other hand, were originally local businesses founded by title abstractors. Most major cities in the United States had at least one title insurer based in that state by the turn of the twentieth century. Each business provided a policy form that it had created. These policies had a wide range of terms.
- Five large life insurers created the first standardized loan title insurance policy form in the 1920s, which all title insurers were compelled to furnish to their companies. This was known as the LIC policy, or Life Insurance Company policy. According to the American Title Body, which was then the national association for the title business, “Not just life insurance companies, but also real estate mortgage companies, have adopted it… ” The ATA’s decision to adopt a policy form fashioned after the LIC policy in 1929 was prompted by the widespread use of the LIC policy. According to the ATA, the LIC policy form was a tough pill for title insurers to swallow because “It had not only been written for them, but it also had someone else’s name on it!”
- The ATA policy of 1929 was the first widely adopted uniform policy, and it served as the basis for all later ALTA policy forms. The policy had already “been approved and accepted by several of the title insurance firms,” according to the ATA’s announcement, and it “will be given to all life insurance companies lending money upon first mortgages and generally to all real estate mortgage companies.”
- Since the 1929 ATA policy, it has been customary for the ALTA, as the national trade association for the land title business, to establish and promulgate policy forms. In practically every state, ALTA member title insurers employ them. For national lenders and loan buyers, this increases consistency and efficiency.
- When a secondary market for mortgage loans emerged after World War II, standardization of policy forms became even more vital. Buyers of those loans, such as the Federal National Mortgage Association (Fannie Mae), began requiring title insurance as a way of standardizing their loan files and ensuring stronger protection for the investors in their government-sponsored enterprises.
- 58-26-1. Organizational purpose; formation; insurance of closing services; premium rates; combined premiums for lenders’ coverages.
(a) Companies may be formed in the manner provided in this Article for the purpose of providing information about real estate titles and insuring owners and others interested in real estate against loss due to encumbrances and defective titles; provided, however, that no such information or insurance shall be provided or issued with respect to North Carolina real property unless and until the title insurance company has obtained the opinion of an accrediting agency.
Various title-related acts have been declared to be the practice of law by the North Carolina State Bar.
In New Jersey, title insurance is generated by non-attorney commercial title insurers or their agents in the northern portion of the state, whereas it is created by approved attorneys in the southern part of the state.
The Texas Supreme Court has declared that all legal documents, including loan documents, must be drafted or reviewed by an attorney.
In addition, under Rule P-22 of the Basic Manual of Title Insurance, attorneys are frequently involved in closings, either as title agents or as independent closing attorneys.
- Different Jurisdictions Have a Wide Range of Title Insurance Rate Filing Systems and Premium Rates
- The majority of title insurance premiums are graduated by policy amount in $500 or $1,000 increments.
Is Massachusetts an attorney closing state?
Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and West Virginia are among the states with laws requiring the physical presence of an attorney or other types of involvement at real estate closings.
Because this list is subject to change based on newly enacted legislation, you should consult your real estate agent for the most up-to-date information. Because the transaction involves real estate, you’ll almost certainly require the services of a notary public in addition to a lawyer. Check with your agent to see if you need to engage a notary public. Many attorneys hold notary commissions or have a notary public on staff.