Massachusetts Real Estate Legislative Update
Beveridge & Diamond, P.C. - Massachusetts Environmental, Land Use and Real Estate Alert, 2008
Amendment to Condominium Law
On April 24, 2008, an amendment to the Massachusetts Condominium statute took effect eliminating the requirement of attaching a verified copy of the floor plans of a condominium unit to the first deed recorded for each particular unit. The amendment is applicable to all condominium unit deeds, whether recorded prior to, on or after the effective date of the amendment. In practice, while it was useful for a buyer to receive a verified copy of the condominium plan certifying the unit designation, and its layout, location, dimensions, etc., many times this requirement created logistical difficulties. The master deed remains the best source of reliance for information related to the condominium unit.
Environmental Bond Bill
On August 14, 2008, the Governor signed a five-year, approximately $1.66 billion energy and environmental bond bill. In addition to the usual funding included in the bill, the bond bill includes financing for investments in energy efficiency and renewable energy, and new programs addressing climate change; a reflection of the 2007 merger of state environmental and energy agencies. The bond bill includes a provision making interest-free loans available to communities for wastewater planning directed at projects intended to remediate or prevent nutrient enrichment of a surface water body or a source of water supply. In order to be eligible for the loan, the community must meet Department of Environmental Protection planning and management requirements, implement certain land-use controls and not be subject to government enforcement actions tied to nutrients. The Governor sent back to the legislature an amendment regarding a proposed income tax credit for property owners who donate an interest in real property to the government or a nonprofit land conservation entity. The Governor’s amendment limits the tax credit to $2 million per year.
Increased Recording Fees for Multifunctional Documents
Massachusetts General Laws Chapter 262, § 38 and Chapter 44B, § 8 were recently amended to expressly require the payment of additional recording fees for multifunctional documents. The Amendments provide that “when a document includes multiple references to a document or instrument intending or attempting to assign, discharge, release, partially release, subordinate or notice any other document or instrument, each reference shall be separately indexed and separately assessed an additional [recording] fee.” The Amendments eliminate questions that may have arisen as a result of a recent court decision and establishes a uniform practice for all Registries. As an example, if a single document discharges a Mortgage and an Assignment of Leases and Rent, it will be treated as two separate discharges and fees will be charged for both. The Amendments are retroactive thereby eliminating any potential claims seeking reimbursement for excess recording fees.
