Real Estate FAQ

Should I buy or rent?

Some people buy a vacation home with the idea of turning it into a permanent retirement home down the road. Others like the tax benefits or wish to expand or diversify their investment portfolio. Owning brings the benefit of having your own place, becoming part of the community, blending into the daily fabric of the area, and living in all its seasons. Ownership brings great benefits, but also the responsibilities of home management and maintenance. Income property, on the other hand, generally must be owned, else turning a profit on it is impossible as it isn't yours to lease or rent.

When is a good time to buy?

Although the Fall of 2001 saw significant changes in our economy, The United States is still experiencing an active real estate market. Pricing has adjusted somewhat to current market conditions, resulting in a moderate softening of prices. There is a slight increase in the number of available listings, providing potential buyers with greater choice of properties from which to select. Additionally, interest rates are at, or near, 20-year lows. These factors combine to make this a great time to buy property.

What costs will come along with owning a 2nd home?

As with ownership of any property, there are mortgage, utilities, insurance, and maintenance and repair costs. If you’re thinking of renting your property, or using the property seasonally, it’s best to have a property manager or caretaker who can check in on the property and deal with issues that arise. If you’ll be renting the property, you will also have agency commissions associated with each group of tenants. Many owners prefer to have lawn care and cleaning services to keep the place in ready-to-use condition.

What is the difference between a REALTOR(c) and real estate agent?

Anyone who has completed their real estate certification course can show you properties and act as a real estate agent. REALTORS®, however are a group of agents who have achieved higher levels of professionalism and adhere to a strict and monitored code of ethics.

What is the difference between an offer and a purchase & sale?

The Offer is the legal document, which is signed by both parties when a buyer and seller agree on the initial terms of the sale. The Purchase and Sale is a more detailed, lengthy legal document, which is often executed after certain contingencies (such as inspection) have been completed. When either document is signed by both the buyer and seller, they constitute a legally binding agreement. Be sure to consult with your attorney before signing any legal documents.

How do I get a municipal lien certificate? How much will it cost and how long does it take?

If you wish to obtain a Municipal Lien Certificate, the following are required:

List the Parcel ID (Map, Block and Lot.), owner’s name, property location, include $25 per parcels requested and a self-addressed stamped envelope if you wish the municipal lien certificate mailed to you. Acceptable forms of payment: attorney’s check, certified or registered check, and cash (if in person). Please allow ten (10) business days for processing. Mail your request to the Assessor's office in the community that the property is located.

What if I have a credit on my account?

A refund check is issued to a taxpayer who has a credit balance on their bill, provided that they supply the City with the proper information and they have no other outstanding taxes due and payable to the City.

If the credit was caused by overpayment, a request for refund should be accompanied by a copy of the canceled checks (front and back) for the fiscal year(s) in which the credit(s) exist. If the property has recently been purchased or refinanced, please also include a copy of the HUD Settlement Statement, which lists the details of the taxes paid at the closing. Please include your name, the property address, and the parcel ID with your request and payment information to the Town's Treasurer’s Office.

If the credit was caused by abatement, the refund will automatically be issued unless the property has changed hands during the fiscal year. When the credit on a Real Estate bill is a result of an abatement, the refund total may include 8% interest. The refund interest is calculated from the abatement date or the due date of the tax (whichever is later), to the issue date of the refund.

The refund will usually be returned to the record owner. If the property has been sold during the fiscal year to a new owner, the date of transfer (deed date) and the information on the HUD Settlement Statement will determine who is eligible for the refund.

What should I do if I recently sold my property, but I am still receiving a tax bill?

In most cases, if the deed has been recorded at least 6 weeks prior to the issue date of the tax bill, the new owner will also receive a copy of the tax bill. If you receive a bill within 6 weeks of the sale, please forward it to the new owner immediately as it is his/her responsibility to make payment.

Who is responsible for the taxes if a property is sold after January 1?

Although the tax bill will bear the name of the assessed owner as of January 1, the new owner is responsible for all taxes once the sale of the property is finalized. The amount of tax owed by the old owner is determined at the time of closing and is typically deducted from the selling price. Once this deduction is made, the new owner must pay all bills, as they become due in order to avoid collection actions, including foreclosure. The lawyers assisting each party should already have investigated any outstanding taxes and obtained a Municipal Lien Certificate. Once the agreement is made, the new owner is obligated to pay any outstanding taxes due on the property.

Why should I pay interest on a late payment when I never received my tax bill?

Under state law, failure to receive a bill does not affect the validity of the tax or any interest or fines incurred due to late payment(s). It is the responsibility of the taxpayer to secure his/her tax bill when one is not received. You can request a duplicate tax bill by calling the Collector’s Office to request the form. The Collector’s Office will mail you a remittance slip on request. However, the request must be received early enough to allow sufficient time to avoid late charges.

How can I change the tax bill to my name, after purchasing a parcel of property?

New owners will be automatically updated by the Assessor’s Office upon receipt of a copy of the recorded deed from the Registry of Deeds. If the sale is very close to a tax due date, you may call the Treasurer’s Office for a remittance slip to be sent to you. You may also update the mailing address on the bill by filing out a form from the Tax Collector's Office. The Collector of Taxes is required by Massachusetts General Law to issue the bill to the assessed owner as of January 1. Therefore, the old owner and the new owner will receive a tax bill until the following January 1.

What happens if I do not pay my tax bill?

Tax payments must be received on or before the due date to avoid interest charges. If payment is not made within 30 days of the original date of mailing, the account will begin to accrue interest at the rate of 14% per annum, computed from the date the bill was due. A demand notice will be sent and a demand fee of $5.00 is charged against the account. If the account remains outstanding 14 days after the issuance of the demand notice, a warrant notice is sent. The warrant fee is $9.00. Please note that demand and warrant notices are sent only on the third and fourth quarter bills. If the account remains delinquent after June 30th of the fiscal year, a tax lien (a legal claim placed on property for debt) is placed on the property and is recorded with the Registry of Deeds. In addition, the property is placed in the tax title system. A tax lien is the first step in the foreclosure process. All taxes, costs and interest must be paid to prevent foreclosure.

How do I change my mailing address for tax billing?

Contact the Assessor's office in the community where the property is located. They can take the information over the phone or, will send a form to be filled out and returned.

How do I check ownership or valuation of property?

Go to "Public Access" Search or, if you need certified owner information you can either (a) go in to the Assessor's Office for this information or (b) mail in a request for information, with an inquiry fee of $1.00 per parcel. All properties listed on the Assessing web site are sorted by street address, owners’ name or by Map, Block and Lot number, sometimes referred to as the Parcel ID.

What does 100% of full and fair cash value mean?

The courts have defined this phrase to mean "current market value", the price arrived at by a willing buyer and a willing seller, each with a good knowledge of the market and each acting without undue pressure or compulsion. Thus, in determining value, assessors seek to approximate what property would sell for on the open market, within an acceptable range of error.