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Is Interest Due on Last Month’s Rent?

9 Oct

MetroBoston Publication date October 9, 2013
By Attorney George Warshaw 

Many landlords choose to require a last month’s rent rather than a security deposit under the belief that there is less risk and no liability with a last month’s rent.

That’s very true with one exception: a landlord still has to pay the tenant interest on the amount of the last month’s rent.

Yes, that’s right. It’s a common misconception that interest is only payable on a security deposit and not on the last month’s rent.

The tenancy statute is very clear. A tenant is entitled to interest at the annual rate of 5% on the amount paid as last month’s rent with one exception.

A landlord may avoid paying the 5% rate if the landlord escrows the money in an interest-bearing account bank account. In that case the tenant only receives the interest earned in the account.

In calculating the number of months that interest is due, the landlord doesn’t have to pay interest for the very last month of the tenancy, since that is the month for which the last month’s was taken and presumably used.

If a landlord takes a last month’s rent and a security deposit, the tenant is entitled to interest on both, payable at the end of each year of the tenancy.

© 2013 George Warshaw.  George Warshaw is a well-known attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, litigates real estate matters, and prepares wills, trusts, and estate plans. George welcomes new clients and questions. Contact him at metro@warshawlaw.com.

 

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Is Boston’s New Rental Law Enforceable?

20 Sep

MetroBoston publication date September 18, 2013
By Attorney George Warshaw

You’ve probably heard about Boston’s new registration and inspection law.

If you own and rent an apartment or condo in Boston or don’t live in it, you have to register your property with the Inspectional Services Department.

Here are some key details.

  • Registration was due by August 31st. If you haven’t registered you will have to pay a penalty.
  • Every year you will have to renew your registration and pay a small fee.
  • If you, the property owner, don’t live in Massachusetts you have to designate a resident agent.
  • If your children occupy the apartment but you don’t, you still have to register your property.

As part of the registration, the property owner is required to certify that he or she is familiar with a plethora of complex laws and regulations including the State Sanitary Code, Building Code, Student Zoning Code, Lead Paint Standards, Fair Housing Regulations, etc. – and the owner has to certify an intention to comply with them.

Is that possibly legal?

I could not honestly certify familiarity with thousands of pages of regulations and I’ve written a textbook on Massachusetts Landlord-Tenant Law used by lawyers and law schools throughout the state and litigated cases in the Housing Court for 20 years.

Can you be forced to certify what isn’t true? © 2013 George Warshaw.

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The Home Inspection Trap

7 Mar

MetroBoston Publication Date February 27, 2013
By Attorney George Warshaw

Professional home inspectors often unearth defects easily overlooked by the untrained eye. Don’t pass on a home inspection before buying a house or condo just because it looks good or is newly built or renovated.

The inspection is usually conducted after the offer is accepted but before the purchase and sale agreement is signed. Nearly all preprinted offers contain “an inspection contingency” giving the buyer the right to cancel the purchase based on the results of the inspection.

Be careful how it’s worded – there may be a trap.

Many of these preprinted forms only give the buyer the right to cancel if there are “serious structural or mechanical defects,” whatever that means, or put a limit on the amount of repairs required that permit you to cancel; i.e., “negotiate.”

That’s not good enough in my view.

Don’t hesitate to cross it out and simply make your offer subject to an inspection that is satisfactory to you. It’s your offer – and your right to control how it’s worded. 

Be a smart buyer. Get an inspection before buying, and make it satisfactory to you – and if you’re selling, consider hiring an inspector to flush out your problems before you put your home on the market. © 2013 George Warshaw.

George Warshaw is a well-known attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions. Contact him at metro@warshawlaw.com.

 

 

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When a Phone Call is Not Enough

7 Mar

MetroBoston Publication Date February 20, 2013
By Attorney George Warshaw

Ms. M, a nice young girl, found an affordable South End Condo. It was her first real estate purchase. Mom even liked it.

Her offer was accepted and she paid a $1,000 deposit. .

The offer contained the usual mortgage clause. She had to submit a written application for a loan by a certain date.  If after making a diligent effort she didn’t get a commitment for financing by a later date she could cancel and get her money back.

Ms. M called a mortgage broker who gave her bad news. The condo didn’t qualify under Fannie Mae guidelines. A minimum percentage of condos had to sold or under agreement to owner-occupants. Since hers was the very first sale in a new development, the building didn’t qualify.

Ms. M asked for her deposit back. The seller refused claiming “a phone call was not enough.”

The offer required she submit a written application for a mortgage and make a diligent effort to obtain a loan. She never submitted a written application and never called any banks that might possibly give her a loan.

Is Ms. M entitled to her money back?

No, the court ruled. A phone call is not a written application and a diligent effort requires more than a phone call. © 2013 George Warshaw.

George Warshaw is a well-known attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions. Contact him at metro@warshawlaw.com.

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Marriage and Real Estate

5 Feb

MetroBoston Publication Date February 5, 2013
By Attorney George Warshaw

State law provides married couples a special form of home ownership protection. It’s referred to as a “tenancy by the entirety.” It’s like a joint tenancy but for married couples.

It’s created by simply stating in the deed, “I grant to Dick and Jane, husband and wife (or being a married couple), as tenants by the entirety, the following property . . . .”

What’s special about it?

Real estate acquired under the heading “tenants by the entirety” is similar to a joint tenancy in one sense: if one person dies the other inherits it automatically. A probate court is not required to pass title to the survivor.

Marital property held this way has two special features: first, a creditor of only one spouse cannot seize and sell the marital home so long as it is the principal residence of the other spouse; and second, neither spouse can eliminate the right of the other to inherit the property by merely giving a deed to a child or an outsider.  

There are several exceptions that may make a visit to a lawyer worthwhile. If you acquired your martial home before February 11, 1980 or were originally deeded your home as joint tenants or tenants in common, consult a real estate lawyer to upgrade your ownership. © 2013 George Warshaw.

George Warshaw is a well-known attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions. Contact him at metro@warshawlaw.com.

 

 

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Owing Real Estate as Joint Tenants

31 Jan

MetroBoston Publication Date January 31, 2013
By Attorney George Warshaw

Two or more people can own real estate together in several ways. One of the most common is as “joint tenants with rights of survivorship.”

A joint tenancy is a form of ownership by which a person’s ownership rights in property pass to one’s co-owners upon death.

Ordinarily, when a person dies the heirs must go through the probate court to obtain certification of an inheritance of real estate. Property owned or held as “joint tenants” avoids probate because the property transfer is automatic upon death.

Simply file the death certificate with the Registry of Deeds and the transfer of legal ownership become complete and noted in the official records. Nothing more is necessary to effectuate the transfer of title ownership.

A joint tenancy in real property is established by the initial words of transfer used in the deed. “I grant to Fred and Wilma Flintstone the following property as joint tenants with the right of survivorship . . . .” is how it is typically phrased.

Can one joint tenant deed his or her interest without the consent of the others? Yes. One joint tenant always has the right to transfer his or her ownership interest without the permission of the other – but the automatic inheritance right is usually lost upon the transfer. © 2013 George Warshaw.

George Warshaw is a well-known attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions. Contact him at metro@warshawlaw.com.

 

 

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Should You Add Your Name to Mom or Dad’s Deed?

25 Jan

MetroBoston Publication Date January 24, 2013
By Attorney George Warshaw

Last week we briefly discussed the tax benefits and perils of gifting real estate. One thing that most people do not consider as a gift is when a child’s name is added to a parent’s deed.

Usually a child is added to a deed to make inheritance easier or to help manage the parent’s property.  Adding one’s name to a deed can have unintended tax consequences. It is often considered a gift under the tax code!

If it is considered a gift, then the person receiving the gift receives along with it the same tax basis that the parent had in the property.

If a house is worth $500,000 and a child is added to a parent’s deed as a joint tenant with rights of survivorship, the child usually receives a gift of a portion of the parent’s ownership interest – typically a half-interest.

Keep in mind this basic estate planning rule when transferring any interest in property: a person inherits property at its fair market value; a person receives a gift of property at the same tax basis (i.e. cost + improvements) as the giver has in the property.

Check with your tax accountant, adviser or lawyer before adding someone onto a deed. The foregoing may not apply to you. © 2013 George Warshaw.

George Warshaw is a well-known attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions. Contact him at metro@warshawlaw.com.

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Is it Better to Give than Receive?

17 Jan

MetroBoston Publication Date January 17, 2013
By Attorney George Warshaw

When families get together over the holidays talk often turns to inheriting mom or dad’s house or estate.

Is it better to receive a gift of real estate today or inherit it later? Tax wise, a gift isn’t always the best choice.

When a person dies one’s real estate has to be valued. Let’s say the present market value of the house is $500,000, but mom or dad only paid $100,000 for it.

Give it to your children while you are alive and they are considered to have acquired it at the same price you (mom and dad) paid plus any improvements.

A person who receives a gift steps into the shoes of the giver. If your children acquire the property by gift at the same price or tax basis as mom and dad paid ($100,000) and sell it later for $500,000, they’ve made a profit of $400,000.

If your children inherit it later, on the other hand, the tax law treats it as if your children bought it at its fair market value. Inherit it at $500,000, sell it at $500,000 and they technically made no profit.

Always consult your tax advisor or attorney before gifting real estate. It’s a complicated subject. The above information may not apply you. © 2013 George Warshaw.

George Warshaw is a well-known attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions. Contact him at metro@warshawlaw.com.

 

 

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Have Your Property Taxes Gone Up?

16 Jan

MetroBoston Publication Date January 10, 2013
By Attorney George Warshaw

There is no more unpleasant New Year’s surprise than to find a tax bill in your mailbox for your home or condo, especially if your taxes have gone up.

Massachusetts has a confusing way of taxing properties.

First of all, the tax year starts in July, not January (i.e. which the government calls a “fiscal year”). Fiscal year 2013 began last July 1, 2012.

Secondly, most cities and towns issue bills quarterly (Boston, Brookline) while some bill semi-annually (Cambridge, Cape Cod).

Changes in taxes, rates and valuations are announced in the middle of the tax year (January for quarterly taxpayers), not in the beginning (July). One must wait until January to find out what the taxes should have been last July.

If that isn’t confusing enough, here’s the tongue twister: any increase or decrease in the value of your property that appears in a January tax bill doesn’t relate to the year in which the bill is issued; it relates to the previous tax year!!!

The value the city puts on your property that appears in the tax bill issued in January 2013 is what the city believes your property was worth on January 1st 2012 – one year ago!

Now try to figure that out!

Are You Eligible for a Property Tax Abatement?

If your home or investment property is being over-assessed by the city you may be eligible for a tax abatement.

Every January, municipalities that have a quarterly payment plan (like Boston) announce new tax rates and new assessed values of homes and investment properties.

If your property was overvalued you can file for an abatement. The question that you must answer in your application is what your property was worth on January 1, 2012 (one year ago). Your real estate broker is often a great resource of information.

Abatement applications in cities and towns that bill quarterly must usually be submitted by February 1st (be sure to check your town). In order to be eligible for an abatement – and this is critical – all property taxes due by February 1st (including any past due) must be paid by that date.

Once an abatement application is submitted, the city or town must accept your valuation, make a compromise or reject it within a specific period of time. Many applications, especially in Boston, are rejected merely because the city runs out of manpower to process all the applications.

If an application is rejected, all is not lost. A property owner still has a right to appeal to the Appellate Tax Board and begin a legal proceeding. © 2013 George Warshaw.

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George Warshaw is a well-known attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions. Contact him at george.warshaw@warshawlaw.com.

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Now That The Election Is Over

14 Nov

MetroBoston Publication Date November 14, 2012
By Attorney George Warshaw

Thank goodness. No more ads by candidates ripping each other to shreds. But now, what’s ahead for the real estate economy?

Predictions that real estate will lead us back in the recovery quickly turned to gloom a day after the election. “The recession is upon us again! The sky is falling!”

I must say that I am so sick of hearing good news one day and Armageddon the next.

I’m taking a simpler, unscientific approach to understanding the future of the market. If you want to know what the weather will be, stick your head out the window.

In my view, this country is in a credit crisis. I ask three recovery questions: Is individual credit card debt being reduced? Are foreclosures slowing? Is consumer confidence positive, negative or indifferent?

A positive answer to all three questions means to me that people are recovering and will spend money again soon. People spending money generally means that more people get employed to meet demand.

Perhaps my view is simplistic, but right now the real estate market is still moving forward. Prices have increased. Rents are rising. Homes and condos for sale are in shorter supply. New home construction is up. Banks want to and need to make loans.

All very positive signs. That’s my view! © 2012 George Warshaw.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at metro@warshawlaw.com.

 

Quitclaim Deeds of property

8 Nov

MetroBoston Publication Date October 07, 2012
By Attorney George Warshaw

When you buy a home in most of Massachusetts you receive at the closing table what is often called a “Quitclaim Deed.” That’s because the deed comes imprinted with the words “Quitclaim Covenants” in it.

But what does it mean?

Quitclaim Covenants are analogous to a limited warranty made by the seller to the buyer about the quality of title or ownership to the property being transferred.

By using the common phrase “I convey to you [my condo or home] located at . . . with Quitclaim Covenants” – or words to that effect, the seller guarantees that at the time the deed is passed across the table the property is free from liens and encumbrances placed on it by the seller.

Mortgages, property taxes, water and sewer charges, and condo fees are liens on a property until they are paid.

So if a mortgage was granted by the seller and a release of that lien was not recorded on or before the time of sale, the seller remains responsible to obtain it even after the property is sold.

That’s important because in Massachusetts the age old rule of “Buyer Beware” is still alive. Once the deed is accepted by a buyer, the buyer’s ability to sue the seller later becomes more limited and difficult. © 2012 George Warshaw.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at metro@warshawlaw.com.

 

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AN ALARMING EVENT

24 Oct

MetroBoston Publication Date October 24, 2012
By Attorney George Warshaw

I received an email from a reader of this column that stunned me.

Her house, like many others that have a radon remediation system, uses a fan to draw and vent radon that enters the house back to the outside.  What happens if the fan stops working? In the reader’s case, the fan was in the attic and was plugged into an ordinary outlet.

When her fan stopped working radon levels in the house went from below the federal 4.0 safety standard to above 20.0 for several years. The 4.0 federal safety level, as readers of this column now know, isn’t all that safe (please see www.GeorgeintheMetro.com).

At a 20.0 level, the government predicts that 35 nonsmokers and 180 smokers out of a thousand will get lung cancer from radon. If you are genetically susceptible, or haven’t always lived in the best environment, you may be as vulnerable as smokers to radon.

The reader developed Stage IV lung cancer. Can it be attributed solely to radon? Perhaps not; but the radon certainly didn’t help and may have accelerated the problem.

She asked me to pass this along: get your vent fan hard-wired into the electrical system. Don’t just plug it into an outlet where a malfunction might not be noticed. © 2012 George Warshaw.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at metro@warshawlaw.com.

 

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Minimizing Stress in Buying a New Home

18 Oct

MetroBoston Publication Date October 17, 2012
By Attorney George Warshaw

The real estate market has heated up. While prices are not what they once were, prices are moving upwards with many properties selling over the asking price.

With pent up buyer demand comes stress, especially if you are selling your home and buying a new one.

Avoid the two most common mistakes that buyers make.

First, if you are selling and buying a new home don’t try to do both on the same day. Sell on one day and buy the next. There is too much that can go wrong to risk it all on the same day.

Second, don’t choose the busiest day of the week to close on your purchase.


What would happen if the deed doesn’t get recorded that day? You might not be able to move into your new home for several days. If the sellers were counting on the money to buy a new place to live on the same day, what will they do?


All this can be avoided: never choose a Friday, the last day of any month or the day before a holiday for your closing. These are the busiest real estate days. Why take a chance?


Everything happens very quickly in real estate. Take your time – and a deep breath. © 2012 George Warshaw.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at metro@warshawlaw.com.

 

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RADON IN YOUR WATER

3 Oct

MetroBoston Publication Date October 3, 2012
By Attorney George Warshaw

 Last week I wrote about the dangers of radon in one’s home even at the so-called federal safety level. With 7 out of a thousand nonsmokers and 62 out of a thousand smokers predicted to get lung cancer at the federal safety level, it hardly seems like a safe level at all.

 Radon is not just limited to the air in one’s home. It’s in drinking water. While city or town water is treated and likely to disperse any radon within it, if you have well-water then you may have a serious problem.

 Radon in one’s water supply can cause stomach cancer when ingested if levels of radon are sufficiently high. Similarly, radon gas that is dispersed when one washes dishes or showers can cause lung cancer.

 Safety levels in water are measured differently than in air. That’s what confusing. Not all the states are consistent in what they view as a safe level or problem dose. Massachusetts believes that a level of 10,000 pCi/L is safe in water. New Hampshire believes that only 2,000 pCi/L is safe. The U.S. Environmental Protection Agency thinks 300 pCi/L (yes, that’s right, 300) is the safe level.

 So if you have radon in your water supply, take action, and don’t necessary rely on what the government thinks is safe. © 2012 George Warshaw.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at metro@warshawlaw.com.

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DOES RADON SCARE YOU

26 Sep

MetroBoston, Publication Date September 25, 2012
By Attorney George Warshaw

If you own a home, or hope to in the future, you need to know about radon. Radon is a colorless, odorless gas that emanates from rock formations below your home. It comes into the house through the foundation. It causes cancer. 21,000 people will die from it this year.

Radon is the second leading cause of lung cancer.

Radon can be remediated in the house by installing a relatively inexpensive fan and exhaust system, but people tend to take no action if levels meet the federal safety standard.

The federal radon standard considered “safe” is 4.0 picocuries per liter of air, expressed as 4.0 pCi/L. The federal standard, to me, is a disgrace.

According to the EPA, it is anticipated that out of 1,000 people exposed to radon, the following will likely develop lung cancer:

8.0 pCi/L…..15 nonsmokers or 120 smokers

4.0 pCi/L…….7 nonsmokers or 62 smokers

2.0 pCi/L…….4 nonsmokers or 32 smokers

1.3 pCi/L…….2 nonsmokers or 20 smokers

The risk is approximately 9x greater for smokers at the federal “safe level” of 4.0.

Some consider 7 cancer victims out of a thousand an acceptable number, I don’t; declaring 62 out of a thousand an acceptable number of cancer victims because they are smokers is unconscionable.

More on Radon next week © 2012 George Warshaw.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at metro@warshawlaw.com.

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Getting Ready for the New Economy

19 Sep

MetroBoston, Publication Date September 19, 2012
By Attorney George Warshaw

Anyone who reads the events of the day, follows the economic and political news and takes a moment to assess it all, may conclude that we are in the midst of a new economic model. That new economic model can be summed up in one word: Turmoil.      

Turmoil is “a state or condition of extreme confusion, agitation, or commotion.” Merriam-Webster Dictionary. That, I believe, fairly sums up our present and future economy and the state of mind of those who manage it.

The good news for real estate is that the Federal Reserve recognized the turmoil and in a desperation measure last week agreed to pour a great deal of money into the economy to bolster it. This will keep interest rates extremely low for a long period of time to come.

But as Fed Reserve Chairman Bernanke admitted, there is not much more they can do if this last round of Fed magic doesn’t work. Since Washington politicians have abandoned common sense in order to make the opposing party and themselves look bad, there are several things one should consider: carefully manage your personal finances, cut your expenses, get rid of debt, but take advantage of opportunities in real estate when you see them. There will still be many ahead.

That’s my plan.  © 2012 George Warshaw.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at metro@warshawlaw.com.

 

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Is Social Security a Better Investment than Real Estate?

16 Aug

MetroBoston, Publication Date August 15, 2012
By Attorney George Warshaw

The Associated Press reported a story that many missed: “Since 2010, Social Security has been paying out more in benefits than it collects in taxes.”

“The Social Security trustees project the [present $2.7 trillion dollar] surplus will be gone in 2033. Unless Congress acts, Social Security would only collect enough tax revenue each year to pay about 75 percent of benefits, triggering an automatic reduction . . . . The projected shortfall in 2033 is $623 billion, according to the trustees’ latest report. It reaches $1 trillion in 2045”.

If Congress does nothing – which it has been inclined to do (after all, THEIR benefits aren’t affected) – they will have to raise your retirement age, cut your benefits, or raise your taxes. Likely, all three.

Is your condo or three-family house a better revenue source than Social Security? Well, you’ve likely refinanced it to the lowest possible interest rate imaginable.  It will be paid in 30 years.

Which do you think will be a better source of future retirement income: what you already own and can rent or social security?

I’m betting on rental income.

So, if there is any way you can keep or acquire future income generating property, it may be a better bet than social security.

More next week © 2012 George Warshaw

George Warshaw is a real estate and estate planning attorney in Massachusetts. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts for individuals and families. George welcomes new clients and questions at metro@warshawlaw.com.

Just When You Thought It Was Safe

14 Aug

MetroBoston, Publication Date August 8, 2012
By Attorney George Warshaw

By now most of you know that there exists a secret society of people cloistered far underground, never seeing the light of day, walking hunched over from computer to computer yelling “see that 30 day late, gotcha now!”, who control your credit score and hence your destiny.

It’s bad enough that three competing credit reporting agencies put their own spin on your creditworthiness and some gnome then “scores” your credit like a Vegas Bookmaker, but now there’s a new referee in town who will have even more to say.

On July 10th, the credit scoring gnome “FICO” joined with CoreLogic (a data mining firm) to design a wholly new score specifically for mortgage lenders and borrowers. The FICO Mortgage Score Powered by CoreLogic is based on information provided by CoreLogic in a detailed report called the CoreScore Credit Report.

The report grabs information that Experian, TransUnion and Equifax don’t consider. CoreLogic has access to information about you that others don’t.

Pay your rent late or miss an alimony or support payment (how would they know?) and you could have a problem getting a loan. Supposedly if you dispute an inaccurate item on the CoreScore report, the disputed item won’t be held against you.

Let’s see how that works out!

 © 2012 George Warshaw.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at metro@warshawlaw.com.

 

Is Your Condo Underinsured?

27 Jun

MetroBoston, Publication Date June 27, 2012
By Attorney George Warshaw

 

Even condos suffer fires. Lenders are now requiring “walls in” coverage for condos, but what does that mean?

Every condominium has a master fire and casualty insurance policy covering the bricks, mortar and common areas – but does the master policy cover the walls and cabinets inside each unit as well? Maybe.

There are three types of master condo policies: “all-in” (or all-inclusive), “single entity,” and “bare walls.”

“Take the apartment, turn it upside down and shake it,” one insurance agent told me. “If it doesn’t fall then it’s covered by the ‘all-in’ policy. This policy also covers any improvements made to the unit – new cabinets or renovations

The “single entity” master policy is the same as the “all-in” except that it doesn’t cover any improvements made since the condo was created.

“Bare walls” covers common areas only – and not any interior walls or the fixtures inside a unit.

Make sure your condominium documents require the right coverage – and that your agent is providing you with that coverage.

One last word on insurance. It’s sometimes worthwhile to get your personal unit owner’s policy from the same insurance carrier or agent that handles the building. You may be able to avoid finger-pointing by two different insurance companies in the event of a claim.

© 2012 George Warshaw.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at metro@warshawlaw.com.

 

Do You Need A Lawyer to Buy A House?

18 Jun

MetroBoston, Publication Date June 18, 2012
By Attorney George Warshaw

If you are getting a mortgage the bank will hire an attorney to examine the title and conduct the closing. Do you really need to hire and pay for your own lawyer as well?

The role of the lender’s attorney is to implement the loan, not advise the buyer on legal matters or assist in the purchase and sale agreement.

If a title examination shows an easement giving someone the use of or the right to go across your property, as often occurs, the lender usually won’t care but the buyer might.

Or if an examination reveals a restriction on the color you can paint your house, the ability to add a deck, or a myriad of other common matters, the lender will likely not care.

Chances are you won’t even be told about any of a number of matters affecting the property. They’ll just be listed in a form that you might not even see at the closing.

Don’t count on the lender’s attorney to provide any advice if a problem arises. Their job is to collect the money, clear any liens, pay the seller, and get the lender’s papers signed.

So be a smart buyer: save the pennies on something else. Hire your own attorney and get personal legal advice.

©2012 George Warshaw

George Warshaw is a real estate and estate planning attorney in Massachusetts. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts for individuals and families. George welcomes new clients and questions at metro@warshawlaw.com.

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