Chapter Sixteen

    One of the decisions you will have to make is how you would like to hold title to the property that you are purchasing.   If you are buying a home with a partner, friend or spouse, you should take some time before you reach the closing table to discuss this with your attorney to help you decide which form of title will best serve you and your future needs.

Singular Ownership

     Under this form of ownership, the owners are thought to be one entity.  Neither one can sell, will or dispose of his or her interest separately from the other. If Mary wanted to leave her share of the house to a child from a previous marriage, she would not be able to do so unless John agreed and they both signed a deed indicating that they both agreed to the transfer.

Filing a Declaration of Homestead

     According to Massachusetts General Laws, Ch. 188, S.1-10, you have a right to file for protection  of your property equity under The Homestead Act.  The act allows you protection of up to five hundred thousand dollars ($500,000) of the value of your residence against attachment, seizure or execution of judgment from unsecured creditors.  The document is called a Declaration of Homestead.   

     To qualify, the property must be your principal residence.  Exemptions to the homestead protection are:  debts for taxes, mortgages used to purchase the home, debts incurred prior to signing the homestead,  and debts from the court pursuing child support payments.

     You may file for protection whether you are a sole owner, joint tenant, tenant by the entirety or tenant in common, but the act states that only one owner of a home or one family is eligible for protection on your residence.   The word "family" would include either a parent and a child or children, a husband and wife and their children or a sole owner.

     Home owners who are 62 years of age or older and persons who are disabled are protected to the extent of $500,000 each.  Therefore, if two disabled persons or persons above the age of 62 reside in the same home, they should each file a Declaration of Homestead.

     The fee for filing a Declaration of Homestead is thirty-five dollars ($35).   The form can be made available to you at your closing.  It must be signed, notarized and registered at the Registry of Deeds.

  Exhibit E

DECLARATION OF HOMESTEAD

I, _________________________________________________, owning and occupying as my

principal residence the real estate at____________________________________________,

in_________________________, Middlesex County, Massachusetts, ownership evidenced by:

_____Deed recorded in Middlesex County Registry of Deeds Book_________ Page_______,

_____Certificate of Title #_____________________register in the Middlesex Registry of

Deeds Land Court.  Shown as Lot #__________ on Land Court Plan #___________________,

_____Inheritance from_________________________________________________________,

Probate Court Docket #_______________ ,________________________County Probate Court,

hereby declare a Homestead in said premises under the provisions of Chapter 188, Section 1 of 

the General Laws of Massachusetts.

I expressly reserve the right, to myself and my spouse and to the survivor of us, and to the Executor 

or Administrator of the survivor of us, to revoke and rescind this Homestead as to ourselves and 

our minor, unmarried children.

Executed as a sealed instrument this__________ day of ___________________________20____.

                                                                              ______________________________________

                                                                                            (declarant's signature)

                                               Commonwealth of Massachusetts

On this_______ day of _________________________,20__, before me, the undersigned notary

public, personally appeared____________________________________, proved to me

through satisfactory evidence of identification, which was/were_________________________

____________________________, to be the person whose name is signed on the foregoing 

document, and acknowledged that he/she signed it voluntarily for its stated purpose.

_____________________________, Notary Public (seal)

My commission expires:

Closing Costs and Remaining Down Payment

      Before your closing, you should receive your Estimated Closing Costs. These usually come from your bank or lender.  An overview of the these costs can be found in Chapter Two.

     The bulk of the money for your new home will be in the form of a check from the bank that is providing your loan and should be included in the closing package submitted to the closing attorney's office.  You are responsible for bringing the remaining  down payment and closing costs.  These funds must be brought in the form of a certified bank check.  Since the check is as good as money, it's advisable that you have the bank make it out to you. You can then endorse it and sign it over to the appropriate party at the closing.

(Outstanding items to be paid to the seller)

    Taxes -- If the sellers have paid a full or partial year of  real estate taxes, the tax amount will be prorated and you will be reimbursing them appropriately for taxes they have already paid.

    Utilities -- If the house you are buying has oil heat, the sellers may have filled the tank. Plan on paying them for that full tank of oil. The same runs true if there are any other utility or incidental expenses that the sellers have paid and you will be inheriting.  The listing broker will usually have the responsibility of bringing a final reading of the water and gas to the closing ensuring that the seller's usage has ended on that day.

     The sellers will also have called the utility companies to end their electrical and gas service.  Remember to call ahead to begin utility service in your name on the day of closing.

    You will be asked for a photo identification and a copy will be made for the file. The bank wants to be sure that the person who signs the mortgage note is, indeed, the person who will be paying it.  If you are not a U. S. citizen, bring your passport, visa and any other related documents.