Estimated study time: 45 minutes
Content:
In Massachusetts, residential real estate closings are almost exclusively conducted by attorneys — unlike many states where title companies handle closings. The buyer's attorney (and often the lender's closing attorney) conducts a title examination (title search) by searching the public records at the county Registry of Deeds and, for registered land, the Land Court. The title examination traces the chain of title — the history of ownership — back a minimum of 50 years (by Massachusetts Conveyancing Standards), though some lenders and title insurers require a longer search. The search confirms the seller's legal authority to sell, identifies any liens or encumbrances that must be cleared, and verifies that no prior deeds, mortgages, or other instruments affect the buyer's title.
The title search process examines several record sources: the grantor-grantee index at the Registry of Deeds (allowing search by name of party through the chain of title), recorded plans and subdivision plats, the Registry's online records (Massachusetts provides access through masslandrecords.com), recorded easements and deed restrictions, judgment liens in the court records, federal tax liens (filed at the Registry in Massachusetts), estate tax liens, and mechanic's liens. The attorney prepares an abstract of title summarizing all instruments found in the search and a title opinion letter identifying any title issues (clouds on title) that must be resolved before closing. Common title defects include: outstanding mortgage not discharged, unpaid taxes, unresolved probate issues, missing heirs, fraudulent deeds in the chain, and boundary disputes.
Title insurance provides protection against defects that a title search might miss — forged signatures in the chain of title, fraud by prior owners, errors in the public record, unrecorded easements, missing heirs, undisclosed spouses' interests, and survey errors. Massachusetts uses two types of title insurance: the lender's policy (required by virtually all lenders; insures the lender's interest up to the loan balance; premium paid by the borrower) and the owner's policy (optional but strongly recommended; insures the buyer's interest up to the purchase price; one-time premium). The American Land Title Association (ALTA) forms are standard in Massachusetts. Title insurance premiums in Massachusetts are regulated and paid as a one-time premium at closing.
The Massachusetts Conveyancing Standards (published by the Real Estate Bar Association of Massachusetts — REBA) provide practical guidance on title examination issues such as how to handle old mortgages, gaps in chains of title, and estate issues. A key Massachusetts concept is the Marketable Title Act: Massachusetts does not have a broad marketable title act eliminating all interests older than a fixed number of years (unlike some states). Title issues older than 50 years are presumptively acceptable in many contexts, but the title attorney must exercise judgment. A last-minute title search (bringer's search) is conducted immediately before closing to confirm no new liens or encumbrances have been recorded since the initial search.
Key Terms:
Quiz Questions:
Q1. In Massachusetts, who typically conducts the residential real estate closing?
A) A licensed title company officer B) The real estate broker as a neutral facilitator C) An attorney, typically the lender's closing attorney or the buyer's attorney D) A notary public appointed by the Registry of Deeds
Answer: C — Massachusetts is an attorney-closing state. Residential closings are conducted by attorneys, typically the lender's closing attorney (who also represents the buyer) or separately the buyer's own attorney. Title companies do not typically conduct closings in Massachusetts as they do in some other states.
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Q2. A title search reveals an open mortgage from 2005 that the seller claims was paid off but never formally discharged. What must happen before closing?
A) The buyer accepts the property subject to the 2005 mortgage and assumes the payments B) The seller must obtain a formal discharge of the mortgage from the lender and record it at the Registry of Deeds before closing C) The buyer's title insurance covers the open mortgage; no action is needed before closing D) The listing agent can issue a letter confirming the mortgage was paid off
Answer: B — An open mortgage is a cloud on title. The seller must obtain a formal discharge (also called a release or satisfaction) from the lender and record it at the Registry of Deeds. Title insurance does not substitute for clearing a known title defect before closing.
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Q3. A buyer purchases a home and acquires only a lender's title insurance policy. Two years later, a previously unknown heir of a prior owner surfaces and claims ownership. What protection does the buyer have?
A) Full protection — the lender's policy insures the buyer's ownership interest B) No protection for the buyer's equity — the lender's policy protects only the lender's interest C) Full protection — Massachusetts law provides a 2-year statute of limitations on ownership claims D) Partial protection — the buyer is covered up to 50% of the purchase price
Answer: B — The lender's title insurance policy protects the lender's interest only. The buyer's equity is unprotected without a separate owner's title insurance policy. If the heir successfully claims ownership, the lender's insurer protects the bank but the buyer may lose their equity unless they have their own owner's policy.
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Q4. Where are Massachusetts real property instruments (deeds, mortgages, easements) recorded?
A) At the municipal assessor's office in each city or town B) At the county Registry of Deeds C) At the Massachusetts Secretary of State's office D) At the Registry of Motor Vehicles
Answer: B — Real property instruments in Massachusetts are recorded at the county Registry of Deeds (or for registered land, at the Land Court). Massachusetts has 21 registries covering the state's counties and districts.
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Q5. What is the purpose of a bringer's (last-minute) title search performed just before closing?
A) To confirm that all prior mortgages in the chain have been discharged B) To verify no new liens, mortgages, or other documents have been recorded since the initial title search C) To update the title insurance premium to reflect any changes in value D) To check whether the seller purchased any additional properties after the initial search
Answer: B — The bringer's search occurs immediately before closing to ensure no new documents (mechanic's lien, federal tax lien, judgment) were recorded in the period between the initial title search and closing. This final check confirms the title remains clear at the moment of transfer.
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