Closing and beyond

The Purchase and Sale Agreement (P&S)

After the inspection, the attorneys negotiate the P&S. This is the full contract. It usually covers:

• The larger deposit and who holds it in escrow.
• The mortgage commitment date. Miss it without an extension and you may lose your financing protection.
• Any repairs or credits agreed to after the inspection.
• Title 5 terms: who handles the inspection and any upgrade, and whether money is held back at closing.
• The smoke/CO certificate, the final walkthrough, and the condition of the home at closing.
• Title requirements and what happens if title problems come up.
• For condos: the 6(d) certificate and the condo documents.

Read it before you sign, and ask your attorney about anything you don't understand. Put every deadline on your calendar.

Who the attorneys represent

In Massachusetts, attorneys handle closings, and the roles confuse a lot of first-time buyers:

Some buyers hire one attorney for both the buyer and lender roles, if the attorney is approved by the lender. Ask what each attorney's fee covers.

Title insurance: the lender's policy protects the lender. An owner's policy is optional and protects you against covered title defects for as long as you own the home. Ask your attorney for the cost and what it covers.

Offer-to-keys timeline

1. Offer accepted

   Send the offer to your lender and attorney, and schedule inspections.

2. Inspections and P&S

   Negotiate repairs, then sign the P&S and pay the second deposit.

3. Loan processing and appraisal

   Respond quickly to every request for documents. Don't open new credit or change jobs.

4. Insurance bound

   Homeowners insurance, and flood insurance if required, must be in place before closing.

5. Closing Disclosure

   Under federal rules, you receive the Closing Disclosure at least three business days before closing. Compare it to your Loan Estimate.

6. Final walkthrough

   Make sure agreed repairs are done, systems work, and the home is in the condition promised.

7. Closing and recording

   You sign, the deed and mortgage are recorded at the Barnstable County Registry of Deeds, and you get the keys.

Closing costs

Your Loan Estimate and Closing Disclosure list the actual figures. Typical buyer-side categories:

• Lender fees: origination, underwriting, appraisal, credit report, and any points.
• Title and attorney: lender's attorney fee, title exam, lender's title policy, optional owner's policy, and your own attorney.
• Government fees: recording the deed and mortgage at the Registry.
• Prepaids and escrow: first-year homeowners and flood premiums, prorated property taxes, and the initial escrow deposit.
• Condo or HOA fees: prorated dues, and sometimes a working-capital contribution.
• Adjustments: heating oil left in the tank (often credited to the seller), and taxes and water bills prorated between buyer and seller.

In Massachusetts, the seller customarily pays the state deed excise tax. Down payment assistance and seller credits can reduce your cash to close, within program limits. See Lesson 4.

Homestead declaration

Massachusetts homestead law protects some of your home's equity from certain creditors. Per the Barnstable County Registry of Deeds and the Secretary of the Commonwealth's homestead guide:

• An automatic homestead protection of $125,000 applies to your principal residence. You don't have to file anything.
• A declared homestead of up to $500,000 is available if you record a declaration at the Registry of Deeds.
• Many closing attorneys prepare the declaration at closing. There's a recording fee.
• There are exceptions. For example, a homestead doesn't protect against your mortgage lender. Ask your attorney whether to record one and how it applies to you.

Residential tax exemption (in some towns)

Massachusetts lets towns adopt a residential exemption. It shifts part of the tax burden away from year-round, owner-occupied primary residences and onto other residential property, such as second homes. On the Cape, the towns that have adopted it include Barnstable, Mashpee, Provincetown, Truro, and Wellfleet, according to Truro's FY2026 tax classification presentation. Each town votes on the percentage every year, and other towns may consider it.

• It's not automatic for a new owner. You usually have to apply to the town assessor by a set deadline, with proof that it's your primary residence.
• Your first eligible tax year depends on when you bought and the town's rules. Check with the assessor right after closing.
• For first-time buyers in towns that offer it, the exemption can lower the tax bill a lot. Factor it into your budget only once you've confirmed it.

Look for other exemptions too. Massachusetts offers personal exemptions for some veterans, seniors, and others. Ask the assessor's office, and see the VA guide for veteran-related items.

First-year Cape maintenance

Your first year sets the routine. Here's a calendar to start with. Adjust it based on your inspection report.

Lesson checklist

• Every P&S deadline is on my calendar.
• I know who my attorney is and what they're doing for me.
• I've compared my Closing Disclosure with my Loan Estimate.
• I've verified wiring instructions by phone.
• I've asked about a homestead declaration and the residential exemption.
• I've set up a first-year maintenance calendar and a septic pumping schedule.