Condos and Your Massachusetts 6D Certificate

For many busy professionals and young couples the freedom of condo living is a great alternative to the yard work and shoveling that goes hand in hand with owning a single family home. It’s important to remember when searching  for a condo that this freedom of household duties come at a cost in the form of a monthly maintenance or management fee.  To make certain you are not inheriting late condo fees or assessments your lender and title insurance company will require a 6D certificate to prove you are not taking over the financial negligence of the seller.

Who Does a 6D Certificate Protect?

The prospective homeowner- It makes certain that when you move into our new condo that you are not liable for any late fees or assessments from the previous owner.

The condo association- The MA 6D certificate is like a gate for the association. It makes sure that seller has brought current their dues. This is crucial for the association as they manage the operating account for the building. The fees cover things like plowing, water, sewer, and other common area necessities.

The lender- For a lender a condo is considered a higher risk because they don’t know the financial stability of other unit owners only your personal financial profile. Your mortgage is an investment for the lender and unpaid fees and assessments could end up as liens if they aren’t brought current. An association that is in good financial standing is able to maintain the building and pay its bills on time.

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    Here is an Example of a MA 6D Certificate



Who Obtains a 6D Certificate?

It’s state law in Massachusetts that a licensed attorney conduct your real estate closing, and they are the ones that work with the real estate agent and either the condo management company or association to acquire the 6D certificate. One of the many roles of a Mass real estate attorney is to examine the title for the lender and the buyer in order to issue a “clean title” before the real estate transaction can close. The clean title is also a requirement of a title insurance company before it will issue coverage. Title insurance is protection against a loss arising from a title problem down the road. Title troubles, such as improper estate proceedings or pending legal action, could put your equity at serious risk. If a valid claim is filed, your owner’s policy will cover any financial loss up to the face amount of the policy plus the full cost of any legal defense of your title.

Mortgage Buddy Tip: Look into all of your options when it comes to title insurance to make sure you are protecting your family and your investment. This is also a great time to ask your Mortgage Buddy approved real estate attorney about recording a MA Act of Homestead.

It’s important to remember that a 6D certificate needs to be signed in the presence of a licensed notary and in accordance with the condo by-laws of the property you are looking to purchase. Condo documents can vary from project to project and they may have different requirements. Make sure to allot yourself plenty of time get all of the fore mentioned parties on the same page so you don’t create and closing timeline problems.

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