Do I need a title search?

Yes. If you are buying a piece of real estate, you want to be sure the title is "clean", that is has no liens or encumbrances upon it, which evidences a claim an individual or business has on the property.

What is title insurance?

Title insurance is insurance which protects you from any claims or defects you may have on the title to your land. If there is a "cloud" on the title ( a defect in the title or a claim) the insurance coverage will pay for the cost to clear the title or the dimunition in value of the land.

There is a lawyer preparing all of the paperwork, so why do I need to hire a lawyer?

The lawyer who is preparing the documents for closing is working for the financial institution providing the purchase money or the seller. Therefore, the lawyer is limited in what legal information he or she can provide to you and they cannot provide you with legal advice. Their client is either the financial institution or the seller and whose interests the lawyer is protecting.

I made an offer on a house which was accepted, but the next day the seller told me he was taking another offer. Can he do that?

Agreements for the purchase of land need to be in writing in order to be enforceable. If the acceptance of your offer was not in writing then it is not enforceable.

The owner of the house I am buying told me he would make certain repairs before I purchase the house. Do those need to be in writing?

Yes. If you do not get his agreement in writing, you run the risk he will not complete the repairs in the manner you want him to, or worse, refuse to do them at all. You will then be left in the position of having to enforce your agreement in court.

What does joint tenants with rights of survivorship mean?

There are several ways to take title in a piece of real estate. Joint tenants with rights of survivorship means that you cannot transfer your interest in the property without the other owner's permission. In the event that permission is received, a new deed would have to be prepared. In addition, your interest in the property, at the time of your death passes directly and immediately to the other owner or owners without the necessity of any documents. You cannot pass your interest to another person through your will if you own the property this way.

What does tenants in common mean?

Tenants in common means you can transfer your interest in the property freely, without the necessity of the other owner's permission. Your interest is also transferable on your death, that is your heirs may inherit your interest through your will.

I have just gotten divorced and I was awarded our house. What do I need to do with the deed?

You need to have your former spouse sign a deed transferring their interest in the house to you. The deed then needs to be filed in the registry of deeds for the county in which you live. Until the deed is signed, your ex-spouse still has a title to the property.

What is a transfer tax?

Transfer tax is a state tax assessed on all transfers of real estate. There are certain instances when the transfer tax is not assessed, such as when property is transferred pursuant to the terms of a divorce decree. Currently, the transfer tax is $15 per $1,000 of the purchase price. So, for example, if the sales price is $150,000, the transfer tax will be $2,250.

Who pays for the transfer tax?

This is split equally between the buyer and the seller unless they agree otherwise.