FreQuently Asked Questions (FAQ)

Borrowers and Sellers

Who do you represent at my closing?

In a standard transaction, represent the lending institution that has agreed to take your mortgage as a security interest in your property in return for their commitment to finance your purchase or refinance. Our interest is in making your closing hassle-free while also ensuring that it is conducted properly and according to the lender’s instructions. However, we are more than happy to represent the interests of a buyer or seller independent from the role of the lender’s attorney.

What other services do you provide to the lending institution?

In many states, including Massachusetts, the attorney who represents the bank is required by law to search the title at the Registry of Deeds to the property that is being mortgaged and to certify that the buyer has a good, clear, record and marketable title. The buyer must pay the legal fees for the title examination and certification as part of the closing costs.

We also act as an escrow agent to collect and disburse all of the proceeds and payments resulting from the closing, whether it be for a sale or refinance. We will obtain and make your mortgage payoffs and pay on your behalf any creditor you wish to or are required to include in your closing costs (credit cards, car loans, taxes, etc.).

What other items are included in my closing costs?

our closing costs for a refinance and as a buyer will include fees for processing, application, credit reports, tax services, courier costs, and document preparation, as well as prepaid interest for the days between the closing until the month before your first mortgage payment is due. Other costs may include escrow items such as homeowner’s insurance (also known as hazard insurance) and municipal taxes. Recording fees are required to pay for the costs of recording mortgages and deeds at your county’s Registry of Deeds.

As a seller, your biggest closing cost will typically be your real estate broker’s fee or commission. This can typically be from 4–8% of the contract sales price. In many states, including Massachusetts, the seller also pays for the revenue stamps required to transfer ownership.

What is title insurance?

Title insurance insures that your title is good both on and off the record, is not limited to the 50 year period required to be searched by the attorney, and protects against fraud and forgeries within the record.

The bank will require that the buyer purchase title insurance from an approved title insurance company to insure its mortgage. This is known as Lender’s Title Insurance. The buyer must pay the premium even though the policy only benefits the bank. However, at the closing the buyer has the opportunity to purchase Owner’s Title Insurance that will benefit the buyer.

Since the closing attorney must certify the title, why would I also want title insurance?

The attorney’s certification is based only on the record title for the last 50 years. If a defect does not appear on the record during this time period or appears beyond that time period, the attorney is not liable. Additionally, the attorney is not liable for fraudulent and forged documents that appear on the record.

What is the likelihood that a title defect will appear?

The likelihood is not great, but the financial ramifications could be devastating. It is very expensive and time consuming to go to Land Court to cure even simple title defects.

What does title insurance do if a title defect is discovered?

If the insured party is a defendant in a lawsuit involving a covered matter, the title insurance company hires counsel and pays for the costs of the defense, even if the action against the insured has no merit. If there is a loss to be paid under the policy, the title insurance company’s reserves will cover it.

What items should I bring to the closing if I’m selling my home?

Your real estate broker will more than likely assist you in obtaining the items necessary for the closing. However, if you are selling your home without the aid of a broker or would just like to know what is needed, the following list should help.

Smoke detector certificate: this can be obtained from your local fire department – it will be issued to you upon a successful inspection. We will need the original copy.
Title V certificate (Massachusetts only; and if appropriate): if you have a septic system rather than town/city sewer, this can be obtained from the Massachusetts Department of Environmental Protection stating that it is in good, working order. We will need the original copy.
6(D) certificate (condominiums only): this can be obtained from your condominium association – it will state that all of your fees are current and your unit is not in violation of any bylaws.
Home/pest inspection: this may be required as part of your purchase and sale agreement or by the buyer’s lender – you can verify with us prior to closing if it is required.
Deed: a deed must be drafted for your signature to transfer ownership to the buyer – we can draft deeds for you at a small cost or your attorney (if you have one) can do it for you.
Final bills: the closing is the time to ensure that the seller reimburses the new owners for outstanding utility bills (or pay them off prior to closing) and for the new owners to reimburse the seller for any remaining home heating oil and any municipal taxes that have already been paid by the seller.
House keys: this may be obvious, but people forget them all the time.
Checkbook: having your checkbook with you will ensure that all bills and balances due between parties can be easily paid at the closing – thus avoiding any unnecessary delays. If the amount is in excess of $1000, please bring certified funds (banker’s check, money order, etc.).
Driver’s license: the closing attorney is required to make a copy of your driver’s license. If you do not have a driver’s license, any other government-issued photo ID is acceptable (passport, state identification card, etc.).

What items should I bring to the closing if I’m buying a home?

Your real estate agent will more than likely assist you with the closing process. However, if you are purchasing your home without the aid of an agent or would just like to know what is needed, the following list should help.

Final balance: unless you are financing the entire cost of your new home, you will likely have to pay the balance of the transaction at closing. We can provide you with the final figure in the day or two prior to the closing. We accept banker’s checks in your name or made out to us as the escrow agent.
Checkbook: having your checkbook with you will ensure that all bills and balances due between parties can be easily paid at the closing – thus avoiding any unnecessary delays. If the amount is in excess of $1000, please bring certified funds (banker’s check, money order, etc.).
Driver’s license: the closing attorney is required to make a copy of your driver’s license. If you do not have a driver’s license, any other government-issued photo ID is acceptable (passports, state identification cards, etc.).

Loan Originators

Why should I choose RES/TITLE (Residential Title & Escrow Services) to close my mortgages?

There a several reasons why you should choose Residential Title & Escrow Services to close your loans. We provide an efficient, low-cost, seamless closing product that will help you grow your business and improve client relations.

This product begins with our pre-closing departments and runs through to completion with our closing attorneys and post-closing departments following up on all aspects of your loan.

We will order all titles, insurance binders, payoffs, surveys, and inspections that are necessary for the closing to occur. Our normal title policy turnaround is 3 – 5 days, but we can rush one to completion in 24 hours if necessary.

We will fax the HUDs to you as soon as completed in order to verify figures, make any necessary changes, and to obtain final approval prior to closing.

Our closing costs are significantly lower than traditional law firms and other title and escrow companies. Fee Sheets.

What is the end-product will my client will see?

Your clients will receive the highest levels of attention to their needs and questions from the beginning of the process all the way through disbursement.

We will provide to every client a clean, bound copy of every document which they sign at closing to keep for their records with your logo, welcome letter, and cover pages included.

Every client will receive a gift basket or a gift certificate at our cost on behalf of you.