Whether you are a first-time homebuyer or an experienced real estate investor, a residential real estate purchase can present complex legal issues. Whether you are purchasing your own home or looking for rental property with a positive cash flow, an experienced real estate attorney can help protect your interests.
At Rubin, Weisman, Colasanti, Kajko & Stein, LLP, we have extensive experience handling all types of residential real estate transactions. We draft, review, or negotiate all types of real property documents, from buy-sell agreements to residential leases. We started our practice over 25 years ago with a focus on real estate matters, including real estate litigation. Contact us for a confidential consultation.
Our residential real estate practice include counsel on all real property matters, including
- Purchase agreements
- Sale of real estate
- Leasing
- Mortgage lending services
- Landlord/tenant
- Nominee real estate trusts
- 1031 exchanges
- Rental properties
- Bank and lender representation
- Developer representation
- Condo development
- Financing commercial property
- Tax implications and planning
In addition to homeowners and investors, we represent banks and lenders in residential real estate transactions. We review all types of real estate contracts for our lending clients. We also help prospective home buyers find lenders who will work with them in a cost-effective manner.
Condominium Creation / Conversion
Our real estate conveyancing practice can also assist you in creating or converting a condominium. A condominium is formed by submitting a multi-family property to the provisions of Massachusetts General Laws Chapter 183(A). Each unit in a condominium association is assigned a beneficial per centage interest in the common areas of the condominium property. The common areas are detailed in a document known as a Master Deed which is recorded at the Registry of Deeds serving the county in which the property is located. A companion document to the Master Deed known as the Declaration of Trust, is recorded simultaneously and establishes the condominium association and the rules and regulations by which it will be conducted.
In order to convert a multi-family home to a condominium you need to take the following steps:
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Select a lawyer to help you with the rest of the steps. Our fee for converting your 2-4 family property to a condominium is $2,500.00. Please call for a quote for larger conversions.
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Determine whether or not your municipality has any restrictions on condominium conversion and whether or not your property is a candidate for conversion. For example: some communities have condominium review boards that require applications and filing fees to consider your request to convert your premises. In addition there may be tenant notice requirements to fulfill before beginning the conversion process.
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Hire a registered surveyor to prepare a site plan that will delineate common area and any exclusive use areas. This plan will be recorded with the Registry of Deeds and will establish unit owner rights for parking and yard or driveway usage. The cost of a site plan will vary depending on the size of your lot and the research necessary to locate the boundaries. Plan on approximately $1,000.00 for this. {Note: We can help you select surveyors and architects if desired.}
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Hire a registered engineer or architect to prepare floor plans and unit plans. These plans outline the parameters of each unit and mark exclusive use areas, common areas and individual units. The cost for floor plans and unit plans depends on the number of units. Plan on $1,500.00 to $2,500.00 for most 2-4 unit condominiums.
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Your attorney will prepare your condominium documents in accordance with the plans created by the surveyor and architect. The attorney will draft the Master Deed, Declaration of Trust, Unit Deeds and 6(D) certificates {necessary to pass title to the eventual unit owners, these certificates affirm that no liens for common area expenses are due which could create a lien on the unit}. Your attorney will also negotiate Purchase & Sale Agreements with the counsel for prospective unit purchasers and attend the closings on the units to transfer the title.
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Prepare a budget to govern the collection of monthly condominium fees to pay for common expenses of the association. Your attorney will help you establish an initial budget to supply to prospective purchasers which will outline the items covered by monthly condominium fees and the breakdown by per centage interest for each unit. A typical budget for a 2-4 unit condominium would include the cost of the annual Master insurance policy covering the building(s) that make up the condominium premises, water and sewer fees {if not separately metered to each unit}, snow removal, landscaping and monthly reserve. You can include common electric bills if they apply or outside management company fees if desired. Many 2-4 unit associations are self-managed to keep the monthly fees low.
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Purchase a Master insurance policy. All condominium associations must have a master insurance policy covering the common areas and certain installed portions of each unit. Unit owners can purchase content policies if they wish to cover their furnishings and personal possessions. In order to ensure that mortgage lenders will accept the master insurance the policy must include public liability coverage of at least $1,000,000.00. You can get more details about these policies from your insurance agent.
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Arrange for approval from your current mortgage lender, if applicable. If your property is encumbered by one or more mortgages you will need to get the approval of these lenders in order to submit your property to condominium status. This step will be unnecessary if you are able to pay off the mortgages when you sell the first unit. If the initial sale{or sales occurring simultaneously} will not result in your ability to satisfy the balance of any mortgages encumbering your property, you may be able to secure a Subordination Agreement from your lender and a Partial Release of the mortgage(s) as each unit is sold. The Subordination Agreement, which is recorded at the Registry of Deeds, acts as an acknowledgment and approval from your lender to your creation of the condominium and is necessary to prevent the condominium from being terminated in the case of foreclosure of your underlying mortgage(s). The Partial Release removes the mortgage lien from each unit as a portion of the mortgage is satisfied. Your attorney will assist you with this step and will draft the documents for your lender.
Contact Rubin, Weisman, Colasanti, Kajko & Stein, LLP to schedule a confidential consultation.
