The closing attorney for the sale of my home in Dedham, MA was aware of the necessity to payoff my FHA loan at a certain time to avoid additional fees. The payoff was rejected by my lender because it wasn’t a “certified check, cashier’s check, or bank wire”, as required by the lender’s Payoff Statement. After being contacted by the lender, he then sent a certified check which was received after the deadline and I was charged additional interest and fees. He admitted to ignoring the lender’s requirements, but refuses to reimburse me because he was not responsible for the payoff of my loan. What can I do?

ATTORNEY ANSWER:

You may have a cause of action against the closing attorney since he assumed the responsibility regarding the payoff of the FHA loan, including timeliness of correct payment. Having assumed the responsibility for payment of the payoff, he is now liable for any late fees or penalties that have resulted from his negligence or oversight. You should make a formal demand upon him for reimbursement.   If he fails to pay, you have a good cause of action against him and could seek multiple damages in court plus attorney fees and costs. 

Dedham Closing Attorney Alan Segal provides legal representation for all real estate transactions and serves individuals and business in Dedham, MA and the surrounding Greater Boston region including: Newton, Needham, Westwood, Dover, Natick, Wellesley and Weston.

We are buying a home in Needham, MA. The seller signed a purchase and sale agreement to pay for our closing cost, but he says he did not know that what he signed was actually to do this. The sellers now understand that what they signed is seller’s concession towards buyers closing cost but the sellers never intended to pay the buyers closing costs and they don’t even have their own seller’s agent in an attempt to save money and not pay a realtor commission. My question is, are they liable to pay for our closing costs?

ATTORNEY ANSWER:

Yes, the seller will be liable to pay for your closing costs. The purchase and sale agreement is a legal contract.  However, the maximum amount the seller can pay may depend on the loan program, and, in some cases the amount you’re putting down to purchase the home.  For example, for FHA and USDA loans, sellers can contribute up to 6% of the purchase price towards closing costs. For FHA loans, seller concessions will soon be reduced to 3%.

The Lender may decide to disallow a specific expense on the “Closing Statement”. The Government approved closing statement is called a HUD-1, and the buyer and seller are given one to approve at the closing on the sale. The HUD-1 lists the details of all expenses and payments in the sale, and it is on this document that the lender may disapprove of an item.

Since lender approval of the HUD-1 is the final step standing in the way of completing the sale, buyers often accept the lenders terms, even though it is their loss. However, if you are lucky enough that the seller contracted to pay the buyers closing costs, then the seller is liable and he will be responsible for covering the closing costs he contracted to pay for. If he refuses to proceed with the closing, you can sue him to complete the transaction.  That is called a suit for specific performance.  The alternative is to re-open the negotiations, which can be a quicker approach. 

Needham Closing Attorney Alan Segal provides legal representation for all real estate transactions and serves individuals and business in Needham, MA and the surrounding Greater Boston region including: Newton, Dedham, Westwood, Dover, Natick, Wellesley and Weston.

BUSINESS FORMATION

Alan H. Segal
Law Office of Alan H. Segal
175 Highland Avenue
Needham, MA 02494
Phone: 781-444-9676
Fax: 781-444-9974
Email: alan.segal@segallawoffice.com
Website: www.segallawoffice.com

Alan is involved in all aspects of business formation and entity selection for businesses throughout Greater Boston and Massachusetts. He has experience as a consultant with TV, Radio and the print media. He can assist in creating limited liability companies, sub S and C corporations, general partnerships and sole propriertorships. With over 30 years of Massachusetts business experience, Attorney Segal advises clients on which business entity will serve their long-term business needs.When buying or selling a business or when considering a merger with another company, Attorney Alan Segal provides the insight, knowledge and experience you need to make sound business decisions through each step of the process.

We are buying a house in Quincy, MA and the seller didn’t provide the Property Transfer Lead Paint Notification form before signing the Purchase and Sale Agreement.  This is a clear violation of MA law and Federal law. Can this be used as a negotiating point to lower the sale price?

ATTORNEY ANSWER:

It depends upon whether or not the seller knowingly violated the law. If you are unable to prove that the seller knew of the lead paint and knowingly violated MA and federal law by not providing the Property Transfer Lead Paint Notification, then you will not have a cause of action as the seller must be aware of his violation to be found liable. However, on the other hand, if you are able to prove that the seller violated MA and federal law by having knowledge of the lead paint and not providing the Property Transfer Lead Paint Notification, then yes, you may use this as a negotiating point.

A seller who knowingly violates the law shall be jointly and severally liable to the buyer in an amount equal to 3 times the amount of damages incurred by the buyer under federal law. Also under federal law, a court may award court costs to the buyer, together with reasonable attorney fees and any expert witness fees, if the buyer prevails. Under MA state law, real estate agents, property managers and certain landlords and sellers, where applicable, may be subject to civil liability under the Consumer Protection Statute, M.G.L. c. 93A, which allows award of up to two or three times actual damages and attorneys fees.

Quincy MA Real Estate lawyer Attorney Alan Segal serves the Greater Boston region and all of Massachusetts in real estate law, business law, and estate planning including Acton Agawam Amherst Andover Arlington Attleboro Barnstable Belmont Beverly Billercia Boston Braintree Bridgewater Brockton Brookline Burlington Cambridge Canton Chelmsford Chelsea Chicopee Danvers Dartmouth Dedham Dracut Easton Everett Fall River Falmouth Fitchburg Framingham Gloucester Haverhill Holyoke Lawrence Leominster Lexington Lowell Lynn Malden Marlborough Medford Melrose Metheun Milford Milton Natick Needham New Bedford Newton North Andover North Attleboro North Reading Norwood Peabody Pittsfield Plymouth Quincy Randolph Revere Salem Saugus Shrewsbury Somerville Springfield Stoughton Taunton Tewksbury Waltham Watertown Wellesley Westfield West Springfield Weymouth Woburn Worcester.

Now I’ve changed my mind. How do I get out of it?

ATTORNEY ANSWER:

Prospective homebuyers who want to escape a purchase contract should turn first to the agreement itself. Most states require that real estate contracts be in writing to be enforceable, and most real estate contracts include contingencies, or conditions, that must be met for the deal to close.

Contingencies offer various ways to cancel a contract up until the minute when the contingency is either met or its associated time period expires. Which contingencies are included in a contract depends on state law, local custom, and negotiations between the seller and buyer. Some examples of common contingencies include appraisals, home inspections, and an inability to get a mortgage and title. For instance, if the property isn’t appraised at the value that they agreed to, the bank isn’t going to give the buyer the money to buy the property, so that’s obviously a definite out.

If the contingencies don’t offer an out, another option is to breach the contract. Taking this step is a major decision because it could result in forfeiture of the buyer’s earnest-money deposit or a lawsuit brought by the seller as well as accusations of bad faith and loss of any sums the buyer has spent on an appraisal, title report and home inspection.

Some buyers try to finesse a contingency to create a loophole that doesn’t legitimately exist, so they can break out of a contract without a breach. An example would be pressuring the seller to make unnecessary or excessive repairs in a deliberate effort to kill the deal. This strategy is also an instance of bad faith.

Many real estate contracts contain a liquidated damages clause, which specifies how much the seller will get if the buyer breaches the contract. The sum may be equal to the deposit or down payment, but could also be some other amount. If you breach and don’t have an excuse that’s permitted under the contract, then the seller retains your down payment as liquidated damages. Liquidated damages compensates the seller for any lost opportunity during the time that the home was off the market.

If the buyer breaches the contract, the seller may resort to a lawsuit for specific performance. Essentially, specific performance means a court will force someone to go through with whatever he or she promised to do. This type of lawsuit is rare, perhaps because sellers realize the buyer may not have the money needed for a judgment. But if the seller can’t find another buyer and believes the one who breached the contract can complete the purchase, specific performance may be ordered.

Legalese aside, another option for buyers is to confess that they can’t or don’t want to purchase the house, perhaps due to buyer’s remorse, job loss, or other financial setback. However, this is contingent upon how empathetic the seller is to your disposition.

Newton, MA Real Estate lawyer Attorney Alan Segal serves the Greater Boston region and all of Massachusetts in real estate law, business law, and estate planning including Acton Agawam Amherst Andover Arlington Attleboro Barnstable Belmont Beverly Billercia Boston Braintree Bridgewater Brockton Brookline Burlington Cambridge Canton Chelmsford Chelsea Chicopee Danvers Dartmouth Dedham Dracut Easton Everett Fall River Falmouth Fitchburg Framingham Gloucester Haverhill Holyoke Lawrence Leominster Lexington Lowell Lynn Malden Marlborough Medford Melrose Metheun Milford Milton Natick Needham New Bedford Newton North Andover North Attleboro North Reading Norwood Peabody Pittsfield Plymouth Quincy Randolph Revere Salem Saugus Shrewsbury Somerville Springfield Stoughton Taunton Tewksbury Waltham Watertown Wellesley Westfield West Springfield Weymouth Woburn Worcester.

Mass Realty helps individuals find Massachusetts Real Estate, including Worcester homes for sale, condos, multi families, and townhouses for sale. Real estate guides and professional articles are included to facilitate increased customer awareness. Mass Realty also services Texas Homes For Sale and Southern California Homes For Sale.

ATTORNEY ANSWER:

Yes you can but you must strictly comply with the Security Deposit Law and give the tenant a notice by certified mail within 30 days of them vacating that you are applying unpaid rent to the security deposit.

Newton Landlord Tenant lawyer Attorney Alan Segal serves the Greater Boston region and all of Massachusetts in real estate law, business law, and estate planning including Acton Agawam Amherst Andover Arlington Attleboro Barnstable Belmont Beverly Billercia Boston Braintree Bridgewater Brockton Brookline Burlington Cambridge Canton Chelmsford Chelsea Chicopee Danvers Dartmouth Dedham Dracut Easton Everett Fall River Falmouth Fitchburg Framingham Gloucester Haverhill Holyoke Lawrence Leominster Lexington Lowell Lynn Malden Marlborough Medford Melrose Metheun Milford Milton Natick Needham New Bedford Newton North Andover North Attleboro North Reading Norwood Peabody Pittsfield Plymouth Quincy Randolph Revere Salem Saugus Shrewsbury Somerville Springfield Stoughton Taunton Tewksbury Waltham Watertown Wellesley Westfield West Springfield Weymouth Woburn Worcester.