If you own a home that was built before 1975, there are specific laws in MA when it comes to the installation of smoke detectors. As of December 1, 2016, there is an important change to this law. Here’s what you need to know.

An Overview of the Law in MA

Smoke detectors are required in all residential properties  in Massachusetts. For homes built before 1975, smoke detectors are required on every living level, at the bottom of each staircase, and outside each sleeping area. Smoke detectors must be ionization and photoelectric detectors, except within 20 feet of kitchens and baths. In that case, they must be photoelectric-only. Photoelectric detectors are less prone to false alarms from bathroom steam and kitchen fumes.

Changes to MA Smoke Detector Law in 2016

As of December 1, 2016, smoke detectors in homes built before 1975 must have a 10-year battery. At your local hardware store, you can find this noted right on the packaging. They contain sealed lithium ion batteries with a 10 year life span.

Enforcement of Smoke Detector Law

Smoke detectors are required in all homes, but hey are typically inspected by the local fire department when you go to sell your home. In order to sell your home, you must bring aa smoke inspection certificate from the local fire department to closing. This ensures that your property is in compliance before being transferred to a new owner. So, if you are looking to sell your home this winter, be sure to replace your smoke detectors with the property type before your scheduled inspection. Call your local fire department for additional information and guidance on the new MA Smoke Detector law for homes built before 1975.

As you go through the process of buying home, the closing date is what you look forward to most. It marks the end of the home buying process and the start of the homeownership journey. You plan so many things around that special date,… packing, moving, child care, days off from work, etc. Closing delays can therefore be very stressful. Here are a few ways to keep your real estate transaction on track and avoid closing delays in Massachusetts.

Understand Mortgage Timelines

Before submitting an offer on a home, make sure that either you or your real estate agent checks in with your lender. Find out how much time the lender needs to issue mortgage commitments and schedule closings. Knowing this information ahead of time will avoid delays later on in the process.

Provide Financial Paperwork Early

Your lender may have only asked for preliminary paperwork to prepare your pre-approval. More extensive financial documents (tax returns, bank statements, paystubs, etc.) are typically needed to process your loan. Make sure you know what they require and provide those documents as early in the process as possible. This will save significant time later and avoid unnecessary delays.

Submit Disclosure Documents ASAP

Changes in mortgage laws require your lender to follow certain timelines when it comes to  paperwork and closings. When your lender sends you disclosures to sign, be sure to do so right away. Consider faxing back or dropping off paperwork rather than sending it via snail mail. It’s possible that they are waiting for that documentation in order to proceed with the next steps. This is particularly important if you have a short timeframe for the mortgage commitment and/or closing.

Don’t Submit Last Minute Changes

Your loan must go through underwriting review for approval. Any changes that affect the financial figures will require your loan to go back through this underwriting process, which can be time consuming. For example, changing the amount borrowed, down payment percentage, contributions to closing costs, amount of closing costs rolled into the loan, or loan program directly impacts the figures and loan processing. Discuss all options and make decisions when you first submit your application to avoid closing delays.

More on How to Avoid Closing Delays in Massachusetts

Understanding the process and what is required of you as a homebuyer can help avoid closing delays in Massachusetts. Always submit requested documentation promptly to your lender and try not to make last minute changes after you’ve submitted your loan. This ensures that everything can stay on track with your loan approval and your closing.

As a landlord in Massachusetts, it is extremely important to understand and abide by MA rental security deposit law. There are some very specific rules and guidelines to follow. Here are a few key aspects of this law.

Amount & Receipt of MA Rental Security Deposits

According to MA rental law, security deposits may not exceed one month’s rent. Landlords must provide tenants with a receipt and also notify the tenant of where the funds have been placed. Security deposits should be held in an interest-bearing escrow account at a Massachusetts bank. This should be done within 30 days.

Annual Interest

On a yearly basis, the interest earned from the security deposit must be paid to the tenant. This can be done as a separate check or a reduction in the ren. The interest should equal 5% or the actual percentage earned in the account. It is extremely important that landlords not forget this important step every single year.

Return of Security Deposits

Security deposits must be returned to tenants within 30 days of termination of the tenancy. That last payout must also include any interest earned from the last payout period to the termination date. If the landlord is retaining any part of the security deposit for damages, a detailed list of the charges along with receipts must be included. Landlords may only deduct for actual expenses incurred to repair damages. They should not use arbitrary figures or estimates. This information along with the remaining balance of the deposit must be returned within 30 days.

Importance of Following MA Rental Security Deposit Law

Failure to comply with the MA rental security deposit law can have dire consequences. For example, tenants can be awarded triple damages for a landlord not placing security deposit funds into an interest bearing escrow account at a MA bank. Not paying out interest on a yearly basis could jeopardize a landlord’s rights when it comes to evicting that same tenant. Massachusetts leans heavily towards protecting tenants’ rights. It is not considered a very landlord friendly state. A landlord’s best chance to avoid penalties and retain landlord rights is to follow all laws entirely, especially when it comes to handling security deposits. For additional information on MA landlord and tenant laws, visit the MA.gov website.

In most real estate transactions, there are offers and counteroffers submitted from buyers and sellers. It is important to know what is binding, what is void, and who has the option to cancel. This quick overview will help you better understand MA real estate offers and counteroffers.

The Initial Offer

Home buyers submit the initial offer on a property, usually in writing. In this day and age, it is unlikely that a seller would consider an offer unless it were in writing and accompanied by a mortgage pre-approval letter. Massachusetts offer also typically have a specific expiration date and time.

When a buyer submits a written offer, it will be a binding contract if signed by the seller before the expiration time. At any time before it is accepted by the seller, the buyer may rescind their offer. If the time lapses, then the offer is no longer valid.

Seller’s Counter Offer

A seller may choose not the accept that initial offer, but instead, submit a counteroffer. The buyer’s first offer becomes void; the seller cannot go back and accept it. The seller’s counteroffer is now the only valid offer to be considered. The buyer may choose to accept the counteroffer or submit their own counteroffer.

As a side note, counter-offers made verbally may not be legally binding until in writing and signed by both parties. However, communications made via email and text may be considered “in writing” and may therefore be legally binding. Refer to our blog on “Text Messages Can Be Legally Binding in MA Real Estate Transactions” for additional information on this.

General Rule on MA Real Estate Offers and Counteroffers

In general, once a counteroffer is made, all previous offers become void. Only the current counteroffer is valid. The person making the counteroffer may rescind it at any time before the other party accepts. A party reviewing an offer can also flat out reject an offer or counteroffer (rather than submitting yet another counteroffer). A rejection ends the negotiations, unless a brand new offer is submitted.

Sometimes a buyer or seller may want to go back and accept a previous counteroffer. Unfortunately, old counteroffers are not valid. In the example below, after going back and forth several times, a buyer decides to reject the seller’s most recent counter-offer. This ends the negotiation sequence. The seller in this case cannot come back and say they want to accept the  buyer’s last offer of $410,000 since it’s no longer valid. However, the seller can initiate a new offer to the seller for $410,000. It would then be up to the buyer to accept or reject.

Example…

• Buyer Offers $400,000
• Seller Counteroffers $420,000
• Buyer Counteroffers $410,000
• Seller Counteroffers $418,000
• Buyer Rejects Counteroffer

Offers Are About More than Price

As a final note, keep in mind that offers contain more than a reference to price. Closing date, deposit amounts, and other terms may be negotiated as well. It’s possible that counter-offers may be submitted for the same price but with different dates or other terms. Any time something is changed in an offer, it essentially creates a counter-offer. Keep this in mind when negotiating MA real estate offers and counteroffers.

Property disputes are typically one of the most stressful types of disagreements. Usually, your home is your haven. It’s not a very pleasant one if you are surrounded by conflict and must interact with your neighbor on some level each day. In many cases, disputes would have been prevented had each party handled matters differently. Given that you can’t easily pick up and move, it’s best to approach neighbor relations tactfully from the start. Here are some tips on minimizing property disputes in Massachusetts.

Communicate Openly

Anytime you are making changes to your home that may somehow impact your neighbor, take the time to tell them about it ahead of time. This is especially true when dealing with changes right along the property line such as installing fencing or altering trees or shrubbery that may cover both properties. Advance notice is an act of respect and can go a long way. Your neighbor may follow your example and do the same should they decide to make any changes to their property in the future. If your neighbor expresses concern or disagreement with your changes, at least you will be aware of this ahead of time rather than after the fact.

A Little Consideration Goes a Long Way

Although you are not required to get your neighbor’s blessing to make changes to your own property, accommodating some of their needs can go a long way in establishing good neighbor relations. For example, if you plan on cutting down some trees that separate your two properties and your neighbor expresses concern about losing their privacy, perhaps you should considering leaving a few trees behind. This generous act will maintain friendly ties.

More on Minimizing Property Disputes in Massachusetts

Before making any improvements along your property line, be sure to get a land survey to confirm the boundaries. This is important in minimizing property disputes in Massachusetts and avoiding a very costly mistake. Although invading your neighbor’s land may be an honest mistake, it could really tick them off and lead to lawsuits.

Save yourself the headache of dealing with angry neighbors by confirming property lines ahead of time, communicating with your neighbors, and giving them a little consideration in your plans.

In this day and age, so much is done through text. Real estate agents communicate with clients, and agents communicate with one another regarding showings and offers. No one really assumes that anything sent via text message is binding, but that is changing as laws adapt to technology. In fact, a recent court case found text messages can be legally binding in MA real estate transactions! Here’s what you need to know about this precedent-setting case.

Court Case Regarding Text Messaged Offers

In the case of St. John’s Holdings, LLC v. Two Electronics, LCC, two agents communicated via email and text message regarding a commercial real estate deal. The seller agent sent texts to the buyer agent confirming that the seller would sign the written contract after the buyer first signs. The buyer agent then confirmed that the buyer had signed and coordinated a time to meet to deliver the signed paperwork along with the check. The two agents then met for the exchange.

Prior to the seller signing the contract, another offer was received and accepted by the seller. The buyer sued, arguing that a binding contract was created by the written communication, including text messages. The court agreed and ruled in favor of the buyer.

What is Considered “In Writing”

The Massachusetts Statute of Frauds requires MA real estate transactions be conducted in writing (and signed by all parties). In the past, “in writing” was clearly defined as a piece of paper with the signatures of all parties. However, email and text messages are changing that definition. Email can be considered “in writing” with the name at the end of the email or the email address itself being the digital signature. The same can be true of text messages, with the originating phone number being the digital signature.

Be Aware that Text Messages Can Be Legally Binding in MA Real Estate Transactions

Buyers, sellers, and real estate agents must all be aware that text messages can be legally binding in MA real estate transactions. It is important to be cautious about what is transmitted via email and text message. If certain communication is intended to be non-binding, it is important to specifically disclose that. For example, agents may note that their client agrees to certain terms, pending a fully signed agreement. This keeps everyone on the same page and avoids unnecessary lawsuits.

The HomeReady mortgage program in MA is a Fannie Mae program servicing low to moderate income families. Some recent changes to the program will allow more home buyers to qualify for this home loan. Here are a few highlights of the changes.

Homebuyer Education Requirements Relaxed

Taking homebuyer education courses is a requirement of this program. Previously, only in-person classes offered by a company called Framework satisfied the requirement. In some cases, class offerings were limited and made it difficult for buyers to attend. Now, homebuyers may receive one-on-one education directly from their loan officer. Buyers can therefore quickly start their home buying process.

Two additional education requirements have changed. First, landlords purchasing smaller unit building (up to 4 units) are no longer required to complete landlord education (although they must still satisfy the standard education requirements). Secondly, buyers refinancing into a HomeReady mortgage and not receiving a big cashout are not required to complete any courses.

Other Important Changes to the HomeReady Mortgage Program in MA

• Higher Income Requirements
  The income limits for HomeReady loans are now higher. Limits match the median income of the area. This higher limit allows more home buyers to use the program.
• Multi-property Ownership Limits Removed
  In the past, home buyers looking to use this program were not allowed to own any other residential properties. This condition has now been removed.

If you are interested in the HomeReady Mortgage Program in MA for your next purchase, contact us. We can refer you to a lender that is authorized to provide this type of financing.

There are two different tax credits offered for homeowners who make energy efficient improvements. Credits directly reduce the tax owed and will, therefore, save money. This article offers energy tax credit tips for MA home owners.

Two Different Tax Credits

The Wind, Solar, Geothermal and Fuel Cell Tax Credit

This tax credit is good for pre-existing homes and new construction, if used as principal residences. The credit is not valid for investment properties. Homeowners may receive a credit totaling 30 percent of the cost of improvements completed between January 1, 2011 and December 31, 2011.

The items below qualify for the tax credit

• Geothermal Heat Pumps
• Solar Panels
• Solar Water Heaters
• Small Wind Energy Systems
• Fuel Cells (up to $500 for each 0.5 kilowatt capacity; other terms apply)

Energy Efficiency Upgrades

This credit covers building components, insulation, windows, skylights, doors, roofs, air circulating fans, furnaces, and hot water boilers. There are certain requirements for each item, so refer to the tax guidelines prior to taking the credit. There are price restrictions on certain items such as windows. Only work completed on principle residences may be used and all products must have at least a 5 year lifespan. In general, homeowners can take a credit of ten percent of the purchase price up to five hundred dollars. Once the five hundred dollars is reached, no additional amount may be applied in any future year. This is a lifetime limit and not an annual one.

Energy Tax Credit Tips For MA Home Owners

With all tax items, keep receipts to confirm expenditures. Also document the manufacturer and model number of all items as some have specific requirements under the tax laws. If you are uncertain of whether your upgrades qualify for this credit or have a large number of credits in your tax return, consider hiring a tax professional. Comprehensive energy tax credit tips for MA home owners is provided at the Energy Star website. The details in this article was compiled by Peter DaMore at Law Offices of Peter T. DaMore Jr. as is meant only as an introduction.

Here’s a little something for all of our home buyer clients. Before selecting colors for a home, contemplate the meaning of color. All colors generate distinct emotions. It can also alter the size of a space. Lastly, it may impact the resale price of a property. Below, we will provide information on the meaning of color and home design tips.

The Meaning Of Color

Below are the common connotations of colors. There can be some cultural meanings that differ from the ones below.

• Blue: Calmness and Relaxation
• Yellow: Happiness and Friendliness
• Green: Optimistic and Natural
• Purple: Harmonious and Creative
• Pink: Kind and Compassionate
• Gray: Neutral and Authoritative
• Black: Conventional and Sophisticated

Effect of Colors on a Space

The darkness or lightness of a color might alter the size of a living area. Light shades normally cause a room to feel open and big. This is advantageous for modest rooms. On the other hand, dark shades make a room seem less massive. It may be applied to make a large space seem less barren. You can also mix dark with light shades to bring attention to special parts of a room.

Color Home Design Tips

Before deciding on colors for your home, consider the features of each space and its purpose. What setting do you wish to create? This may differ for each room. Imagine how one space progresses to the next. This is important not simply for your intended purposes, but it can also influence how future buyers may feel during showings at your property. People should be able to picture their own belongings in the space, so stay away from colors that can produce a negative reaction. Resale value is one of the most important home design tips. If you find it challenging picking colors while taking into account the meaning of color, furniture, and other factors, you may find an interior designer.

MA homeowners should consider the potential increase in the value of their property compared to the cost of specific changes before completing any updates. Some alterations may be more advantageous than others. The following is advice on MA home renovations creating the most value.

MA Home Renovations Creating The Most Value

Property owners usually hope to regain the entire amount of money fromrepairs when it comes time to sell. This is a normal tendency, but it is not realistic. Different home improvements provide different returns, and that change in value can differ based on regions. To give you an overview on home renovations creating the most value, here are a few nationwide estimates.

Averages

These figures were obtained from the Remodeling Magazine Cost Versus Value Report.

Evaluating Home Renovations Creating The Most Value

Another factor determining the value of projects is the quality and scale. Kitchen renovations, for example, can be completed using different quality products leading to a different return on investment. So, not only might you think about the type of renovation but also the brands and quality of materials. For a detailed list of home updates and currentMA home renovations creating the most value, visit http://www.costvsvalue.com.