There seem to be a lot of real estate attorneys offering services.  What makes Kellem & Kellem different?

We are a leader in Real Estate Conveyancing.  So, what does that mean?  In simple terms, in law, conveyancing is the transfer of legal title of real property from one person to another.  At Kellem and Kellem – conveyancing is what we do, not just first and foremost, but entirely.  We are not a firm of multiple areas of practice that just includes a real estate area; we are a real estate closing firm. 

Three of our attorneys have more than 30 years of experience representing buyers and sellers; two have over 15 years. Experience means our attorneys quickly recognize situations that are unique and/or complicated and present tailored solutions for a seamless transaction.  Real estate law demands knowledge, quick response time, availability, and affordability to be effective.

Why do I need an attorney to buy or sell my home?

Buying and/or Selling is usually one of the most significant personal and financial events in a lifetime.  An attorney has one job – make sure you are protected in every way necessary.  Every person’s needs and circumstance are unique.  As your legal team, we will work with you to truly understand your situation and adapt contracts accordingly. 

What is title insurance?

Title insurance is an indemnity (reimbursement) policy, available to Buyers of real estate.  The policy is available through national title insurance companies (see links at the bottom of the page). The closing attorney is typically the issuing agent of the policy.  The policy insures a buyer against a) defects or gaps in ownership that can occur as a result of an abnormality in the historic ownership of the property; or b) liens or encumbrances against the property that were not discovered prior to your purchase.  For a full discussion of title insurance click here Title Insurance 

What is a title exam?

A title exam is an integral part of the purchase process.  With each client purchase, we are performing a historical research project called a title examination.  In most situations, we start the research with the first deed we find for the property dating back at least 50 years.  We then review books, records, and reports forward through the current date.  We review each transfer of ownership to be sure the holder of any ownership interest has signed off properly.  We review any liens or encumbrances that are filed during each period to be sure the lien or encumbrance has been properly satisfied.  We review and report all matters that can affect ownership rights, such as easements (right of another to use a portion of the property); restrictions (things that cannot be done by an owner).  As a result of obtaining and reviewing the title examination, we are able to certify to a buyer that title is “good record and marketable” title.

Is title insurance required?

If you are financing your purchase with a mortgage loan, your lender will require you to purchase a policy for the lender (or will not grant you the loan).  The “lender’s” policy does not extend protection to the buyer.  For a buyer to be protected, an “owner’s” policy is also issued at the time of closing.  Purchase of owner’s coverage is optional, and is a charge separate from the lender’s premium.  It is, however, discounted if purchased at the same time as the lender’s policy.  

Do you recommend title insurance?

Every real estate attorney practicing in Massachusetts will answer yes, Kellem & Kellem included.  The implications of a title issue can be so substantial that we always recommend the purchase of a policy.  Considering the price of the home, you can understand why.

Often, a buyer and/or seller are already working with a real estate broker or salesperson when our services begin.  We certainly can, if asked, refer a local realtor that we’ve had top notch experience with.   The same is true with a prospective mortgage lender.  We work with several that we recommend based on their responsiveness, timeliness, ability to accurately assess potential needs and issues, someone who sets realistic expectations and has great follow though. 

Does it matter if I use an online mortgage company versus a local one?

Often, we hear from a buyer that he or she can get the lowest rate from an online lender as opposed to a local lender.  When asked our opinion, our response is often the same – we recommend working with a lender who is a phone call away or a cup of coffee away.  Local lenders have extremely competitive rates and are personally vested in your purchase.

We have strong relationships with our network of trusted lenders because they have delivered on their promises time after time.  After thousands of closings per year, we have consistently found this to be the most successful model.

It is the date by which a buyer needs a written letter from their lender firmly committing to make the loan and listing any remaining prerequisites.  It is a critical part of the process, because after the date has passed, and assuming the date has not been extended, the buyer has waived the right to the return of the deposit if the loan is subsequently not granted.  From a Seller’s viewpoint, it is the date after which the Seller can firmly plan on the closing getting to the finish line.

What is the cost of using a real estate attorney?

Every circumstance is somewhat different, but generally to represent a Seller the range is between $800.00 and $1,500.00.  There are occasional complications that arise during a transaction that increase costs, but these are the exception and not the rule, and we promise you will never be blindsided by an unexpected bill.  

Fees and costs for representing a Buyer differ, based on our role.  The purchase transaction consists of two distinct portions.  The first is representation involving the purchase contract; the second relates to the title work and closing. 

This is an element that we are sure to review with a prospective buyer client when we first speak by phone.

Is there a difference between buying a single family home as opposed to a condo and what do I need to consider?

There are many things should be considered before making that decision.  When you purchase a condominium unit, you are buying into a community of owners and typically a condo association. This is not “bad” per se, but there are things to consider that are very different than when buying a single family.  In the latter situation, you are truly the master of your domain.  With a condominium, decisions on things like when to make exterior improvements, changing insurance companies, monthly fees, and having pets, are mostly shared.  Condominium ownership can be wonderful for certain situations and phases of life.  But much needs to be understood first.

What is a real estate trust and why would I consider one?

A trust is an arrangement formed by a document that separates legal ownership of a property (in a Trustee) from the “beneficial” ownership (in the beneficiaries).  Trusts are used sometimes for liability reasons, sometimes for estate planning reasons.  Needless to say, the reasons differ for almost every situation, as do the benefits.  This is a discussion for a potential property owner or buyer to have with an attorney.   One last point on the trust form of ownership – often mortgage lenders will not lend to the trust form of ownership.

What are the income tax implications regarding my sale or purchase? 

There are many tax implications to buying and selling.  Certain deductions are available per the tax code to owners of real estate that can add positive impact to real estate ownership.  Mortgage interest and real estate taxes are often a deduction that can be claimed.  If you’re selling real estate, it is ALWAYS a great idea to consider tax implications first.  There are favorable tax provisions for a seller of a principal residence, as long as certain requirements are met.  A tax professional is a great resource for these questions.

Why are my mortgage person, my real estate broker, and my attorney warning me about wire fraud?

This is because everyone in the industry knows someone that has been burned.  During the process of buying and selling, a lot of hard earned money is changing hands, often a lifetime of savings.  There are hacker criminals who understand real estate transactions monitoring emails and correspondence to try to find out when a transaction is happening and exact details.  We know of instances when buyers are getting fraudulent email requests to send money to a person or entity that sounds familiar to a transaction.  A single letter in an email address has been changed.  As you can imagine, sending money to the wrong party is a disaster. As a result, we all warn early and often and take precautions accordingly.

What is a Declaration of Homestead?

We recommend that you consult your attorney for a more detailed explanation of the benefits of a homestead. Please let us know whether you wish us to prepare a homestead for you. The cost for our office to prepare and record a homestead is $137.00.

DISCLOSURE CONCERNING THE MASSACHUSETTS HOMESTEAD ACT

M.G.L. c. 188 § 14

WHAT IS ‘HOMESTEAD?’

A homestead estate exempts a certain amount of the equity of a home from attachment, seizure, execution on judgment, levy and sale for the unsecured debts of the owner of the home, except for the following:

• federal, state and local taxes, assessments, claims and liens;

• liens recorded prior to the creation of the estate;

• mortgages;

• orders of the probate court for support,

• a levy or sale for ground rents (where the homeowner does not own the land); and

• an execution from a court to enforce a judgment based upon fraud, mistake, duress, undue influence or lack of capacity.

Under the Act, the homeowner’s equity in the home is protected for up to one year after a sale of the home, and, if the home has suffered a casualty that results in the payment of insurance proceeds, then the insurance proceeds are protected for up to two years, in order to allow the homeowner time to acquire a homestead in a new (or reconstructed) home.

Homestead protection is available for owner-occupied, residential one to four-family homes, condominium units, cooperative apartments and for manufactured homes. Co-owners of a home “share” the exemption amount.

AUTOMATIC HOMESTEAD:

All homeowners are entitled to automatic homestead protection of up to $125,000 of the equity in their homes. You do not need to do anything to have the benefit of this protection.

An automatic homestead can be subordinated to an unsecured debt of the homeowner of up to $20,000, but the homeowner and any non-owner spouse must consent in writing.

DECLARED HOMESTEAD:

By making a written declaration of homestead, recorded in the registry of deeds, a homeowner’s homestead protection is increased to $500,000.

Some other benefits of declaring a homestead include:

1. A non-owner spouse who lives with the owner has the benefit of the homestead (until terminated in writing);

2. A declared homestead cannot be subordinated to an unsecured debt;

3. If an unmarried owner declares a homestead and marries thereafter, the declaration will automatically benefit the owner’s spouse upon marriage; similarly, a divorce and/or remarriage will not affect the homestead of the spouse who remains in the home as his/her primary residence;

4. A trustee of property held in trust can declare homestead for the beneficiaries of the trust who occupy the home as their principal residence.

5. Elderly and disabled persons who declare homestead are each entitled to a separate exemption of up to V $500,000, which is personal and not shared with any other co-owners of the home.