Massachusetts Agencies

Refinance Recordings

Articles from The Massachusetts Focus

Newsletter of Stewart Title Guaranty Company, Massachusetts Offices
Spring 2003, Volume 2, Number 2

Refinance Recordings
by Richard Urban, Massachusetts State Counsel

As you are undoubtedly aware, recording fees have increased significantly since March 15th. Given the various and multiple documents that are routinely obtained and recorded for a closing, the collective impact of the increases will be substantial. In order to lessen the financial blow to borrowers in refinance transactions, two closing documents may be considered exempt from recording where a Stewart Title policy will be issued:

Municipal Lien Certificates: For a refinance, you do not have to obtain an MLC from the municipality provided that some form of alternative evidence of paid taxes is procured (for example, a verbal statement from the municipality's tax collector's office accompanied, ideally, by independent evidence of payment by and from the borrower).

  • However, in these days of homeowners routinely mailing their quarterly or semi-annual property tax bill to their existing lender for payment from an existing escrow account, a pure verbal statement from the tax collector's office will suffice.
  • 6-D certificates: For a refinance you do not have to obtain a 6-D certificate for a condominium unit.

Waiving the recording of these documents would save a borrower considerable closing costs:

Obtaining MLC$ 25
Recording MLC65
Recording 6-D75
Total Savings…$165

If you have any questions or concerns relative to issuing a "clean" loan policy of title insurance under these circumstances, please do not hesitate to contact our office's legal department.