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Title Certification and the 50-Year Title Search (M.G.L. c. 93, § 70) Massachusetts General Laws chapter 93, § 70 provides that for any purchase money first mortgage, an attorney for or on behalf of the mortgagee, shall render a certification of title to the mortgaged premises to the mortgagor and to the mortgagee. The Amendment insures that home buyers of 1 to 4 family owner occupied dwellings will receive the valuable protection of an attorney's title certification. The certification includes a title examination which covers a period of at least 50 years with the earliest instrument being a warranty or quitclaim deed which on its face does not suggest a defect in title. In the case of registered land, it is sufficient to start the examination with the present owner's certificate of title issued by the Land Court except that bankruptcy indices and federal and state liens must also be examined. The statute requires that the certification include a statement that at the time of recording said mortgage, the mortgagor holds good and sufficient title to the mortgaged premises free from all encumbrances and shall enumerate exceptions. The certification also should include a statement that the mortgagee holds a good and sufficient record first mortgage to the property subject to only the matters noted as exceptions. The liability of an attorney rendering the certification is limited to the amount of the consideration shown on the Deed with respect to the mortgagor and the principal amount of the mortgage, with respect to the mortgagee. The certification is to be effective as long as the mortgagor holds title to the mortgaged premises and exists for the benefit of the mortgagee so long as the original debt secured by the debt secured by the mortgage remains unpaid. Willful failure by an attorney to render a certification to the mortgagors as required by the provisions of this section, constitutes an unfair or deceptive act or practice under the provisions of Chapter 93A. Joel
A. Stein, Esq. (Editor's
Note: Joel Stein is a past president of REBA). |