Begley & Webster, LLC

08/05/2024

Real Estate Friends....With the new changes effective very soon, it will imperative that Brokers utilize the new forms supplied by MAR. The RAPV sent out a newsletter recently with copies of the forms for agents to familiarize themselves with. If a buyer is paying a part of the commission, PLEASE be sure to let the buyer's lender as early as possible know so they can be sure that they can account for it when verifying the buyer's cash to close. A commission paid by a buyer still has to be listed on the Closing Disclosure and can't be "on the side" as it's part of the transaction. A reminder, the Sitzer settlement is only preliminary and the Dept of Justice continues to "investigate" as I suspected they would once given the green light by the courts to do so this spring. As such it is necessary that agents follow the guidance of MAR so we don't give the DOJ a reason to try to interfere in the settlement.

03/28/2024

There have been recent changes to the Connecticut requirements to the affidavit for smoke/carbon monoxide detectors for sellers in CT. The recent change
eliminates the ability of those selling and transferring residential properties in Connecticut to give the new owners a $250 credit rather than providing a signed affidavit attesting to the presence of smoke and carbon monoxide detectors.
Many sellers have chosen to provide the $250 credit in the past because the affidavit required the party transferring the property to certify that the smoke and carbon monoxide detection system complied with the Fire Safety Code, the State Fire Prevention Code, and the State Building Code.
Paying the $250 credit rather than signing the affidavit served to reduce potential exposure to liability. Providing the $250.00 credit is no longer an option.

However, while providing a signed affidavit is now mandatory, the revised statute removes the requirement for those transferring property to provide certification of compliance with state fire safety, fire prevention, and building codes.

At the time of closing on a transaction the seller must provide an affidavit to the buyer stating that the building or unit is equipped with
• Smoke detector/ carbon monoxide detectors to be installed in or in the immediate vicinity of each bedroom.
• Produce an audible alarm when the equipment’s test button is depressed.
• Interconnected in such a manner that activation of the alarm on any such equipment activates the alarm on all such equipment in the building or unit (provided that, for any residential building or unit constructed prior to January 1, 1990, the transferor can specify that the conditions requiring that the equipment be interconnected are not applicable to the building or unit)

There are exemptions to the requirements for providing an affidavit, which were expanded in the updated statute such as a transfer to immediate family or a transfer from a trustee/executor.
Attorney Michelle Begley is happy to assist with your CT deals.

03/18/2024

Just a reminder to all my real estate peeps that Monday April 15 is Patriots Day and the Massachusetts Registry of Deeds is not open. Please do not schedule closings in MA for this day. :-)

02/16/2024

Realtor friends...we've had quite a few sign ups for the March 6 event from 11:30 to 1 pm at RAPV but there is still time to sign up. $10 for members and $25 for non-members. Learn about tenant estoppel certificates, lead paint requirements, what should I tell my seller about the security deposit, what if one of the units is not legal? what is a statement of condition? and when do we need it....etc, etc. Make sure before the spring market hits that you know how to navigate multi families. Hope to see everyone there! Lunch will be served. If you aren't sure how to sign up, reach out and I can point you in the right direction.

01/30/2023

Let’s talk about the “public record” in connection with purchasing multifamily properties.
When purchasing a multi family property, it important to check the legal status of the property with the building department. For example: Just because a property is taxed as a 3 family does not make it a legal 3 family.  I often will have agents tell me, but the “public record“ states it is a three family. The “public record“ is not anything that is an official document. Rather, this is just a third-party that has compiled information from public sources and presented it as public record. The complier of this information does not cross check between the building department and the tax assessor to confirm that the use of the property is legal. I have seen this issue a few times over the last several years.
Also, this is not something that the attorney will discover as part of their title exam so it is important for buyers to do their own due diligence with the city or town building department.




11/24/2021

Just a few of the many things to remember when dealing with the purchase of multi families: In Massachusetts, a landlord cannot charge a tenant for utilities unless there is a written rental agreement; a landlord is required to have all tenants complete the lead paint transfer notification form for any residence built prior to 1978; if a landlord holds a Security Deposit, they must give the tenant a statement of condition at that time they take the Security Deposit so the tenant can list any potential damage that exist as of the date the tenant moves in (ie. holes in walls, stains in carpets etc); if a Landlord holds a Security Deposit or Last Month's rent they must pay interest annually on BOTH but only one must be held in a joint account. A buyer can be on the hook for the sins of the seller if the buyer moves to evict a tenant and the previous owner did not hold the security deposit properly and pay the interest annually as required on both last month's rent or Security Deposit.
Knowledge is power in this industry. Buyers with no experience as landlords should consider taking a landlord class at a local non profit such as Wayfinders who also puts out a book available on Amazon that lays out the law in clear easy to understand terms. The advice and materials available to buyers in these courses may save them from financial ruin.
Due diligence is a buyer's best protection!

10/20/2021

I always caution any agent against doing the buyers' due diligence for them. Last week I had a buyer hopping mad come to my office looking to find out how to sue his agent because he just found out he cannot bring his work truck home and park it in the driveway. This is a common restriction in many cities and towns. He tells me that he had asked his agent when he put in the offer to find out for him if he could do this before he bought the house and the agent said he didn't see why it would be an issue. Please Please Please always direct a potential buyer to check with the town themselves. I see agents checking with the town to confirm lots are buildable without variances or special permits, asking the town about wetlands etc. This can prove to be a disaster if the information given to the agent is not accurate and then transmitted to the buyer. The simple fix is to always have your buyer do the due diligence.

10/07/2021

In Massachusetts, if a seller owns a primary residence in only their name and they are legally married, their spouse must sign off on the deed when you sell the property even if they are not on the title. This applies even if the spouse is not living in the house or if the parties are separated but no divorce has been filed. The spouse does not, however, need to be a party to the purchase and sale.

04/17/2021

***appraisal contingencies****
I know it’s a jungle out there but please be mindful of appraisal contingencies and make sure the buyer and/or seller understands the various issues. Offers have to be worded carefully.

Scenario #1
buyer agrees to waive appraisal contingency ...ex: house listed at $250k and buyer agrees to pay $260k and waives appraisal contingency..buyer has the extra $10k to pay..BUT property appraises at $240k so buyer now has to come up with $20k extra. Buyer is upset and doesn’t have extra $. Parties are now headed to court because buyer argues that mortgage contingency covers and seller disagrees because, but for appraisal, buyer is approved for mortgage. A judge will decide who wins. Only way to prevent is to agree that the property must appraise at list price or some other minimum value the parties agree on.

Scenario #2

seller lists house at $250k and buyer agrees to pay $5000 over appraised value. Seller is happy and thinks that they will get at least get $255k but house appraises for $243k and now buyer wants house for $248k. Seller is upset and wants to pull out because they only wanted to sell if they could get at least the listing price. Buyer disagrees and brings an action in court to force seller to sell at lower price. Parties should agree to contingency that property must appraise at the listing price or another value for seller to be bound to perform.

04/06/2020

Great discussion by Attorney Michelle Begley about navigating a Divorce during these challenging times.

Can I still file for Divorce during the COVID-19 Quarantine?
Yes- Even though the courts are closed for nonemergency hearings, you can start the divorce process and file the divorce, If you are ready to file for divorce, there are some benefits to filing now, as opposed to waiting until things return to “normal.” First, the typical divorce action currently takes between 6-18 months to complete, but this estimated timeframe is likely to be extended due to the disruption being caused by COVID-19. Typically, during this time discovery requests are exchanged, Financial Affidavits are drafted, and Parenting Plans are negotiated. The good news is that those actions often do not require face time and are done remotely. So even while you cannot go to Court at this time, you can still work on moving your divorce matter forward. Further, it may even be easier to gather discovery materials or work on your Financial Affidavit from home as opposed to attending to these sensitive matters while at the office or traveling.
Finally, based on the early reports out of China, it appears there is an increase in divorce filings once the quarantine was lifted. If true, this may simply be people deferring filing due to the quarantine or people filing due to being quarantined together! Regardless of the reason, Courts in Massachusetts will likely be busier than ever once they return to normal operations. Thus, only if you are ready to file for divorce, now may be the time to start the process.
Can I still file Motions in my pending Divorce Matter during the COVID-19 Quarantine?
Yes. Motions can be filed and scheduled after May 4, 2020.there may still be a benefit to filing those Motions now as opposed to waiting.
If you are experiencing a substantial change in financial circumstances due to the economic impact of COVID-19, whether it be a loss of employment, a reduction in commission income, or a loss of revenue if you are a business owner, you will want to consult an attorney to discuss your options. Although a substantial change in financial circumstances will not likely warrant the filing of an emergency motion, the benefit to filing now and then having your spouse or ex-spouse served with the Motion, is that the Court then has the discretion to modify your financial orders retroactively to the date of service. This enables you to preserve your claim even while the Court is not currently scheduling financial Motions.
Also, keep in mind that unless and until an Order is modified by the Court, the existing Order remains in place and you must still follow your obligations. In other words, even if you have experienced a substantial change in circumstances, you cannot engage in self-help and voluntarily stop paying your support obligations. If you fail to do so, your spouse or ex-spouse may file a Motion for Contempt against you. Simply filing a Motion for Modification does not insulate you from a Motion for Contempt, however depending on the reasons for filing the Modification it could mitigate the impact of the Motion for Contempt. Further, as mentioned above, filing and serving the Motion for Modification provides the Court with discretion to enter retroactive orders. Since every Order and case are different, you will want to consult with an attorney to discuss your specific options.
Further, since the already busy Court system will inevitably become busier once it resumes normal operations, it may make sense to “get in line now” as opposed to waiting until things return to “normal.” Before the foregoing measures being enacted by the Court, it would typically take 3-4 weeks from the time you filed a non-emergency Motion until it was scheduled. No one knows for sure how long the wait will be once Court resumes normal operations, but it will likely be much longer than the typical 3-4 weeks.
Attorney Michelle Begley with Begley Webster, LLC remains committed to working diligently by whatever means are necessary to protect you and to advance your case during these unusual times, while also taking all recommended precautions. We are able to perform our services remotely and are able to host telephonic or virtual consultations, meetings, or mediations. If you have any questions about the impact of COVID-19 or the Coronavirus on your pending or potential divorce action, do not hesitate to call us at 413-733-1400 or [email protected].
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03/24/2019

Anyone putting offers in on bank owned properties should be aware that we have had a recent court case (the Thompson case) that has put a cloud on the titles of many recently foreclosed properties in Massachusetts. Currently for most of these properties, title insurance is unavailable for flippers or short term investors. The case is currently on appeal and we are hopeful for a resolution by summer’s end.

03/03/2019

http://s.masslive.com/QeBfvhE

Massachusetts has a reimbursement program for testing. But do people who only think they have contaminated homes really want a definitive answer?