Published by Kelly Sells Boston · About Kelly Cui
Key points
- Book the smoke and carbon monoxide alarm inspection with the local fire department as soon as you have a closing date. Purchase agreements typically make delivering the certificate at closing the seller's job.
- Your payoff amount is not the balance on your statement. It includes interest up to the payoff date and may include fees, so the closing figures rely on a payoff statement for that date.
- Read the settlement figures line by line: price, payoff, credits to the buyer, adjustments for taxes and water and sewer charges, and your selling costs.
- Move out to the contract's standard, typically broom clean with the included fixtures left in place. Keep insurance, heat and utilities running until the sale has closed.
- Confirm any instructions for paying out your proceeds by calling a number you already trust, never one taken from an email.
As soon as there is a closing date
Selling or transferring a home in Massachusetts generally requires a certificate of compliance from the local fire department showing that the smoke and carbon monoxide alarms meet the requirements for a sale. Purchase agreements typically make delivering that certificate at closing the seller's responsibility. The state Department of Fire Services advises calling the local fire department to schedule the inspection as soon as you have a closing date.
What your home needs depends on when it was built and when the last building permit was issued for renovations; the state publishes a guide organized by those dates for one- and two-family homes. Check the manufacture date on each alarm, since an alarm with no date is treated as expired. The fire department charges a fee for the inspection and certificate. If your home is not a one- or two-family house, ask the fire department which requirements apply.
Paperwork also takes time to gather. The seller generally agrees to provide documents reasonably requested by the buyer's attorney, the title insurer or the lender, such as a certificate of non-foreign status, tax reporting forms, and affidavits about liens and parties in possession. For sales with a gross price of $1,000,000 or more, each seller must also complete a Massachusetts Transferor's Certification and give it to the withholding agent on or before closing, and tax may be withheld if the seller is a nonresident. Ask your attorney early which of these apply to you.
The payoff and the settlement figures
If the home has a mortgage or a home equity line, the closing attorney needs an exact payoff figure. That figure differs from the balance on your statement: it includes interest through the day the loan is paid off, and may include unpaid fees and, for some loans, a prepayment penalty. For a loan secured by a home, the servicer must provide an accurate payoff statement as of a specified date when one is requested. Confirm with your attorney that a statement has been requested for your closing date and that every loan or lien on the property is accounted for.
Before closing, ask for the settlement figures and read them line by line. Purchase and sale agreements typically adjust water and sewer charges, real estate taxes and, for rented homes, rents between buyer and seller as of the closing date. Credits to the buyer and your selling costs also come off the price. Here is a simple example with made-up numbers. If the home is rented, the tenant's deposit and prepaid rent are not part of this balance.
| Item | Amount | Note |
|---|---|---|
| Sale price | $1,000,000 | Hypothetical |
| Loan payoff | minus $350,000 | From the payoff statement for the closing date |
| Transaction costs | minus $45,000 | An assumed total, not a commission quote or market standard |
| Credit to the buyer | minus $10,000 | A closing credit, which is not the same as lowering the contract price |
| Balance before taxes | $595,000 | Taxes on the sale are assessed separately |
Moving out to the contract's standard
The purchase and sale agreement sets what the buyer receives at closing: possession of the home, typically in broom-clean condition, with the keys delivered. It also lists what stays and what goes. Fixtures generally stay, personal property goes, and items such as appliances, light fixtures, window treatments and leased equipment are dealt with in the contract. If something you plan to take is attached to the house, check the contract before removing it.
The buyer usually does a final walk-through shortly before closing. Do your own pass first, after the movers leave: closets, attic, basement, garage and yard cleared; included appliances working; no new damage from the move; trash gone. If you need to stay after closing, that has to be negotiated and put in writing in advance, not arranged on closing day.
Insurance, utilities and an empty house
Keep your homeowner's insurance in force until the sale has closed. Purchase agreements typically address insurance for the period before closing, and what a policy covers depends on its terms. If the house will sit empty after you move out, tell your insurance professional and ask whether anything needs to change. Cancel the policy only after your attorney confirms the sale has closed.
Do not shut off heat, water or electricity when you move out. An unheated house can be damaged in cold weather, and the buyer will expect working systems at the walk-through. Ask each utility to take a final reading or end your service as of the closing date, and ask your attorney how water and sewer charges are settled in your town.
Protecting your proceeds
Closing funds attract fraud. Scammers impersonate agents, attorneys and settlement staff and send false instructions about where money should go. Early in the transaction, agree with your attorney, by phone or in person, on how your proceeds will be paid and which phone numbers you will both use to confirm. Before giving or changing any bank details, confirm the account name and number by calling that number, not one in an email, and do not send financial information by email.
If you think money has gone to the wrong account, call your bank or the wire transfer company immediately and ask for a wire recall, then file a complaint with the FBI's Internet Crime Complaint Center. Acting quickly improves the chances, but recovery is not guaranteed.
What to leave for the buyer
Put these together in one place and hand them over through your attorney or agent at closing. Reset devices and remove your personal accounts rather than handing over your own passwords.
- All keys: exterior and interior doors, mailbox and storage, plus garage door openers and fobs
- Alarm, keypad and smart lock codes, with the devices reset or ready to reset
- Manuals and warranty papers for appliances and systems that stay with the house
- Building permits and final sign-offs for work done while you owned the home, if you have them
- Names of service providers who know the house, such as for heating, fuel delivery or plumbing
After closing
Once your attorney confirms the sale has closed, cancel your homeowner's insurance and set up mail forwarding. Keep the settlement statement, the payoff statement and your closing documents; you will need them for the tax return covering the year of the sale, which the guide to seller taxes explains. Watch for final utility bills and pay them promptly.
Closing tasks and who handles them depend on your purchase and sale agreement and on local practice. Your closing attorney can confirm the details for your sale.