When I attended a national law school almost 45 years ago, we would learn two sets of rules in almost every discipline–the law for 49 states and then the “Massachusetts rules”. Today, after practicing law in Massachusetts as a real estate lawyer, I must admit to each of you that the “Massachusetts rules” continue to operate loud and clear, and they can be downright confusing for people who are not used to them. At this time of the year when we all try to “give back”, I have decided to give you some examples of the “Massachusetts rules” with the thought that if you have further questions, you can check my profile and contact me directly. One of my New Year’s resolutions is “I promise to return each inquiry on a prompt and courteous basis”.

Here goes:

     1. Quitclaim Deeds Are the Standard Not the Exception.   In some of the western counties of Massachusetts, and sometimes on Cape Cod, I have seen Warranty Deeds used for conveyancing. Warranty Deeds are not, however, the normal type of Deed which is delivered at the closing. The standard Deed is the Quitclaim Deed, which at first blush, can drive an out of state practitioner wild with fear. You see, in most states, a Quitclaim Deed is what it sounds like. “I am not sure if I have any interest, at all, in this property, but if I do, I am conveying it to you, or words to that effect.” In Massachusetts the Quitclaim Deed says much more. Among other things, the person executing a Quitclaim Deed in Massachusetts warrants that the granted premises are free from all encumbrances made by the grantor, and the grantor and his heirs, successors and assigns will defend the title against all person making claims through, or under, the grantor. In other words, the Massachusetts Quitclaim Deed has similar characteristics to the Warranty Deed in other jurisdictions.

     2. Massachusetts Attorneys Run Almost all Purchase Closings.   Because there is a statute which requires an attorney to render a “title opinion” in every residential purchase to the extent of the purchase price, Massachusetts attorneys continue to conduct purshase closings and serve as closing agents. That is not to say there are not title companies, so-called, in Massachusetts. It just means that the title companies generally work for, or are owned by, attorneys. The concept of “going into escrow” really does not exist under the “Massachusetts rules”.

     3. In Most Purchase Transactions, the Attorney Serves as the Agent for the Title Insurance Company and Writes the Policy.  This part of the “Massachusetts rules” is really a function of the title opinion statute referenced above. Since the Massachusetts attorney is certifying the title, it has proved more convenient for the title insurance companies to use the attorney as title agents.

     4. Despite all these Differences from other Jurisdictions, Title Insurance in Massachusetts is not as Expensive as in Other Jurisdictions. In keeping with all the other idiosyncracies in Massachusetts, you will not be surprised to learn that the cost of title insurance is not regulated in Massachusetts. In point of fact, I have found that most title insurance costs $4.00 per thousand for an Owner’s Policy and $2.50 per thousand for a Lender’s policy. If Owner’s and Lender’s are purchased simultaneously, there is a $175 extra charge. I am told that these rates are in the low to middle range of title insurance charges nationally.

As my clients start to obtain mortgage financing more and more on the Internet, our firm has been doing more and more work for out-of-state Lenders. If any of you fall into that category, please feel free to use Topkins & Bevans as your “source” for Massachusetts mortgages. We have lived with the “Massachusetts rules” for a long time, and we are comfortable wending you through them should you have the need.