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Find a Permanent Place for Your Beach Chair

How to Buy Property in Provincetown

THE 8 BASIC STEPS TO BUYING PROPERTY IN MASSACHUSETTS . . .

Basic Step #8 : Move In and Set Up Your Beach Chair

1. During your first meeting with a real estate agent, make sure you are given an Agency Disclosure Form. This form identifies the agent's relationship to you and/or any other parties to the transaction.

2. Once you have found the property of your dreams and are ready to act, the next step is to make an offer to the seller. The offer to purchase should include the offered price, a prospective closing date, a property inspection date, and any other relevant information. At this time, a deposit must also be made.

3. It's time for any necessary negotiations.

4. Hire an attorney to represent you. Since there are not title companies in Massachusetts, the buyer's attorney usually prepares the next important document in the process, the Purchase and Sale Agreement.

5. Also at this time, hire a professional home inspector to examine the property under question and begin to talk with prospective mortgage lenders about financing arrangements.

6. Usually two weeks after the offer to purchase is accepted by the seller, all parties to the transaction sign a Purchase and Sale Agreement. The Purchase and Sale Agreement is the legal contract for the property transaction. It stipulates the terms outlined in the first offer to purchase, as well as any negotiated additions, and their relationship to Massachusetts law. It outlines the amount of the deposit, the closing date, the number of loans that the buyer has applied for, and all other terms. After the Purchase and Sale Agreement has been signed, an additional deposit is usually required, most frequently in the amount of 10% of the purchase price.

7. Closing on the transaction usually takes place anywhere from 4 to 7 weeks after the Purchase and Sale Agreement has been signed by all parties. When there are mortgage lenders involved, the wait involved tends toward the longer time estimate. The actual closing itself takes place in either an attorney's office or at the Barnstable Registry of Deeds. (Provincetown is in Barnstable County.)

8. It's time to move in and set out your beach chair!

THINGS TO KEEP IN MIND . . .

Massachusetts Law allows for real estate agents to have different types of relationships with buyers and sellers. There are four types of roles that a real estate agent or broker can play in a property transaction in Massachusetts.

1. Some real estate agents are seller's agents. This means that it is their first duty to represent the seller and negotiate the best price and terms for the seller. However, they are also required by law to be fair and honest, and it is their duty to disclose any known property defects to a prospective buyer.

2. Other real estate agents are buyer's agents. This means that it is their first duty to represent the buyer and negotiate the best price and terms for the buyer. They too are required by law to be fair and honest.

3. Thanks to the passage of a new law in 2004, real estate agents in Massachusetts may also now choose to represent both the buyer and the seller in a transaction. It is their duty to act in a manner that does not prejudice the interests of either the buyer or the seller. They are also required by law to inform the buyer and the seller that they are a dual agent and obtain a written consent from each party. Again, they are required by law to be fair and honest.

4. Real estate agents may also work as facilitators. This means that they do not represent either the buyer or the seller, but they may still facilitate an agreement between them. Again, they are required by law to be fair and honest in all their dealings, including the disclosure of known property defects. They are not, however, required to treat information received from the buyer or seller as confidential.