Who Represents You at Closing in Massachusetts?

In Massachusetts, the role of the closing attorney has been a topic of some confusion. So, who exactly does the closing attorney represent in the state? As a general rule, the closing attorney is there to represent the lender only. However, Massachusetts does have an exception to this rule that allows for one attorney to represent both the lender and the buyer in the closing process. This exception is contingent upon the parties involved ensuring there are no conflicts of interest between the borrower and lender that remain unresolved. To provide some clarity, here’s a breakdown of who the closing attorney represents in Massachusetts:
  • Typically, the closing attorney represents the lender only.
  • One attorney can represent both the lender and the buyer if there are no conflicts of interest that exist between the two parties
  • Ultimately, it’s important for all parties involved in a closing to understand the role of the closing attorney so that they can ensure their interests are adequately represented.
  • Remember, real estate transactions can be complex, so having a knowledgeable attorney involved in the process can make all the difference.

    The Role of the Closing Attorney in Massachusetts Real Estate Transactions

    When it comes to buying or selling real estate in Massachusetts, the closing attorney plays a crucial role. They are responsible for handling a variety of legal matters related to the transaction, including reviewing and preparing documents, ensuring the transfer of ownership is completed correctly, and handling the distribution of funds. The closing attorney also acts as a liaison between the buyer, seller, and lender to ensure a smooth transaction. However, the question remains: who does the closing attorney represent in Massachusetts?
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    Representation of the Lender by the Closing Attorney: What it Means for Homebuyers

    In most cases, the closing attorney represents the lender in a Massachusetts real estate transaction. This means that their primary responsibility is to protect the lender’s interests. They ensure that the mortgage documents are completed correctly and that the terms of the loan are favorable to the lender. The closing attorney also ensures that the borrower complies with any conditions set by the lender before the loan is approved. While the attorney represents the lender, they also play a role in protecting the buyer’s interests. They review the purchase and sale agreement to ensure that it is executed correctly, and the buyer understands the terms. They also ensure that the buyer receives a clear title to the property and that the closing costs are distributed fairly. Overall, the closing attorney serves a neutral party between the buyer and lender.

    Can a Single Attorney Represent Both the Lender and Buyer in a Massachusetts Real Estate Closing?

    In Massachusetts, it is possible for one attorney to represent both the lender and buyer in a real estate closing. However, this can only happen if there are no conflicts of interest that cannot be resolved between the two parties. This means that the attorney must disclose any potential conflicts and obtain written consent from both parties.

    Conflict of Interest in Real Estate Closings: What Homebuyers Need to Know in Massachusetts

    Conflict of interest can arise in real estate closings, especially if the attorney is representing both the lender and buyer. For example, if the lender has stricter requirements for the loan than the buyer is aware of, the attorney may need to disclose this information but risk jeopardizing the loan approval process. Additionally, if the buyer were to default on the loan, the attorney may be put in a difficult position if they had provided legal advice to the buyer that conflicted with the lender’s requirements.
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    To avoid conflicts of interest, it is best to have separate attorneys for the lender and buyer. This ensures that both parties receive independent legal advice and representation.

    The Pros and Cons of Having the Same Attorney for the Buyer and Lender in a Massachusetts Real Estate Closing

    There are pros and cons to having the same attorney represent both the buyer and lender in a Massachusetts real estate closing. Here are a few to consider: Pros:
    • Cost savings – having one attorney can be less expensive than hiring two separate attorneys;
    • Easier communication – one attorney can streamline the process and ensure everyone is on the same page;
    • Quicker turnaround – there is less back and forth between two attorneys, which can speed up the closing process.
    • Conflict of interest risk – as mentioned above, there is potential for a conflict of interest to arise;
    • Unequal representation – the attorney may be more focused on protecting the lender’s interests, leading to a disadvantage for the buyer;
    • Loss of independent advice – both parties may be better served by having their own attorney to provide them with legal advice and representation.
    Regardless of whom the closing attorney represents, they have specific legal responsibilities in accordance with Massachusetts law. These responsibilities include:
    • Preparing all legal documents for the transaction, including the purchase and sale agreement, mortgage, and deed;
    • Ensuring that all parties receive the proper documentation and other required information;
    • Conducting a title search to ensure that there are no outstanding liens or other encumbrances on the property;
    • Overseeing the distribution of funds, including the down payment, closing costs, and outstanding mortgage balance;
    • Recording the deed and mortgage with the appropriate government agency;
    • Maintaining trust accounts to ensure that all funds are properly handled and distributed.
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    In summary, the closing attorney in Massachusetts serves an essential role in real estate transactions, representing either the lender, buyer, or both parties. While having one attorney can lead to advantages such as cost savings and easier communication, there is also a risk of conflict of interest and unequal representation. Regardless of whom the attorney represents, they have specific legal responsibilities that ensure proper completion of the transaction. It is crucial to understand the role of the closing attorney and to obtain expert legal advice when needed.

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