Massachusetts Real Estate
Resource Center
All
Brokers/Salespersons represent the seller, not the buyer, in the
marketing, negotiating and sale of property, unless otherwise
disclosed. However, the Broker or Salesperson has an ethical and legal
obligation to maintain honesty and fairness to the buyer in all
transactions.
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Buying A Home
CONGRATULATIONS!
You have decided to buy a new home. These pages will help you take this
big financial step by describing the home buying, home financing, and
settlement process.
You probably started the home buying
process in one of two ways: you saw a home you were interested in
buying or you consulted a lender to figure out how much money you could
borrow before you found a home (sometimes called pre-qualifying). The
next step is to sign an agreement of sale with the seller, followed by
applying for a loan to purchase your new home. The final step is called
´´settlement´´ or ´´closing,´´ where the legal title to the property is
transferred to you.
At each of these steps you often have the
opportunity to negotiate the terms, conditions and costs to your
advantage. These pages will highlight such opportunities. You will also
need to shop carefully to get the best value for your money. There is
no standard home buying process used in all localities. Your actual
experience may vary from those described here. These pages takes you
through the general steps to buying a home, to eliminate, as much as
possible, the mysteries of the settlement process.
Buying and Financing A Home
Role of the Real Estate Broker
Frequently,
the first person you consult about buying a home is a real estate agent
or broker. The most common practice is for the seller to hire the
broker to find someone who will be willing to buy the home on terms and
conditions that are acceptable to the seller. Therefore, the real
estate broker you are dealing with may also represent the seller.
However, you can hire your own real estate broker, known as a buyer’s
broker, to represent your interests. Also, in some states, agents and
brokers are allowed to represent both buyer and seller.
Even
if the real estate broker represents the seller, state real estate
licensing laws usually require that the broker treat you fairly. If you
have any questions concerning the behavior of an agent or broker, you
should contact your State’s Real Estate Commission or licensing
department.
Sometimes, the real estate broker will offer to
help you obtain a mortgage loan. He or she may also recommend that you
deal with a particular lender, title company, attorney or
settlement/closing agent. You are not required to follow the real
estate broker’s recommendation. You should compare the costs and
services offered by other providers with those recommended by the real
estate broker.
Selecting an Attorney
Before
you sign an agreement of sale, you might consider asking an attorney to
look it over and tell you if it protects your interests. If you have
already signed your agreement of sale, you might still consider having
an attorney review it. An attorney can also help you prepare for the
settlement. In some areas attorneys act as settlement/closing agents or
as escrow agents to handle the settlement. An attorney who does this
will not solely represent your interests, since, as settlement/closing
agent, he or she may also be representing the seller, the lender and
others as well.
If choosing an attorney, you should shop
around and ask what services will be performed for what fee. Find out
whether the attorney is experienced in representing home buyers. You
may wish to ask the attorney questions such as:
What is the
charge for negotiating the agreement of sale, reviewing documents and
giving advice concerning those documents, for being present at the
settlement, or for reviewing instructions to the escrow agent or
company?
Will the attorney represent anyone other than you in the transaction?
Will the attorney be paid by anyone other than you in the transaction?
Please
note, in many areas of the country attorneys are not normally involved
in the home sale. For example, escrow agents or escrow companies in
western states handle the paperwork to transfer title without any
attorney involvement.
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