The role of the attorney and title insurance with your mortgage.

IN YOUR INTEREST

When it comes time to get a mortgage, the process often seems endless and
confusing. Financing a home is a complicated transaction and because of the
amount of money involved, it is important to everyone that the process go
smoothly and be as risk-free as possible. The role of the conveyancing attorney
and the title insurance company is critical to this process and to the safety of
your investment- after all, buying a home is the biggest single investment that
most people ever make.

THE CONVEYANCING ATTORNEY

It is important for you to know that:

The conveyancing attorney is bound both by state law and a professional code of
ethics. The attorney is required to have an in-depth understanding of the home
buying process and is one of the only participants who understands all of the
aspects of your entire transaction.

THE ATTORNEY'S RESPONSIBILITIES

People who are getting a mortgage for the first time often wonder what all of the
participants actually do in the course of the transaction. The conveyancing
attorney's role is central to the process in that it is focused on all of the legal
ramifications surrounding this important financial transaction. And because the
transaction is so important to the buyers and sellers, everyone involved wants to
make absolutely certain that there are no "hitches".

The attorney has had extensive education and training and is required to know all
of the laws and regulations affecting your property and mortgage.

The conveyancing attorney performs a number of vital functions including:

Examination of the title to the property to make sure that the title is clear and that
there are no liens against it. This process requires an extensive search at the
appropriate Registry of Deeds--essentially a huge repository of documents going
back to the 1600s that contains documents on all of the real estate transactions
that have taken place in the area.

The conveyancing attorney must certify to the buyer, the lender, and the title
insurance company that the property is clearly that of the seller, that the seller has
not pledged the property against any loans other than the known existing
mortgage(s), that no creditors of the seller have attached the property as security
against unpaid debts, and that there are no easements or restrictions that may
have an impact on the value of the property (for example, an easement for a gas
pipeline which takes up the entire front yard).

The conveyancing attorney serves as the primary document drafter with the
responsibility for the correct preparation of all closing documents. These
documents are required by a host of local, state, and federal agencies and
include such matters as lead paint certification, and municipal lien certification.
The conveyancing attorney may also act as agent and issue the title insurance
policies to the lender and the buyer.

The conveyancing attorney is responsible for the disbursement of all funds in
accordance with the Settlement Statement.This may include paying off the seller's
mortgage, payment of outstanding water and tax bills, payment of appropriate
recording charges, and payment to the real estate broker(s) who brought the
parties together.

After the closing, the attorney is responsible for seeing to it that all of the
documents are recorded properly and all requirements for the successful
conclusion of the sale have been met.

THE TITLE INSURANCE COMPANY

Because it is not possible to know every tiny wrinkle or condition that could
jeopardize your ownership, the title insurance company provides your lender
with a title insurance policy. Should some unforeseen problem develop, the
investment is protected up to the total amount of the mortgage.

Title insurance is relatively inexpensive and provides considerable peace of
mind. In fact, virtually every lender in the country requires title insurance for all
mortgage loans.

HOME BUYER'S TITLE INSURANCE

It is also possible for home buyers to secure title insurance to protect the equity
portion of the investment.This modest, one time premium can be invaluable
should a claim arise that directly affects the ownership of your home.

IF THERE IS A PROBLEM, WHERE CAN YOU TURN?

Because the home buying process is part of a regulated industry, there are a
number of important resources you can turn to should you have a problem at any
point along the way. These resources include:

ATTORNEY GENERAL
Commonwealth of Massachusetts
One Ashburton Place, Boston, MA 02108
Tel. (617) 727-2200

BANKING COMMISSIONER'S OFFICE
Commonwealth of Massachusetts
100 Cambridge St., Boston, MA 02202
Tel. (617) 727-3141

MASSACHUSETTS BAR ASSOCIATION
20 West St., Boston, MA 02111
Tel. (617) 542-3602

MASSACHUSETTS CONVEYANCERS ASSOCIATION
111 Devonshire St., Suite 730
Boston, MA 02109-5411
Tel. (617) 728-3121 and (800) 496-6799
Fax. (617) 728-2949

MASSACHUSETTS MORTGAGE BANKERS ASSOCIATION
76 Canal St., Suite 301
Boston, MA 02114
Tel. (617) 451-9114
Fax: (617) 570-9113