Free Massachusetts Residential Purchase Agreement Template

A Massachusetts residential purchase agreement is the signed contract between a buyer and seller for the sale of a home. The price it sets becomes the consideration in the deed, which drives the state’s deeds excise at recording.

Massachusetts taxes the transfer of any deed that conveys realty to a purchaser. Plan for that tax in your Massachusetts residential purchase agreement.

Who Pays the Excise

The excise falls on the person making or signing the deed. In a home sale, that’s the seller. The Massachusetts Department of Revenue describes the excise as self-assessed and paid by affixing stamps to the deed.

No Stamps, No Recording

A register of deeds may refuse to record a deed that doesn’t carry the stamps Chapter 64D requires (M.G.L. c. 64D, § 6B).

State a Dollar Amount

A deed may recite consideration other than money, such as love and affection. However, the registry needs an actual dollar figure to calculate the excise, so recording may be delayed while it asks.

Overpaid the Tax?

A customer who overpays the excise at the registry may apply to the Department of Revenue for an abatement using Form ABT. According to DOR, the deadline is the latest of three years from the deed’s date, two years from assessment, or one year from payment.

In most of the state, $2.28 for each $500 of consideration, or fraction of $500. The Department of Revenue explains this as a $2.00 base rate plus a 14% surcharge, applied to consideration above $100. DOR computes it on the consideration less any lien or encumbrance that remains on the property at the time of sale.

Barnstable County has its own higher rate. The registers of deeds’ current indexing standards list $3.24 per $500 there.

For example, a $600,000 sale outside Barnstable County comes to $2,736. Rates can change, so confirm the current figure with the registry of deeds before closing.

Here’s a typical Massachusetts closing sequence.

1. Put the deal on paper. Buyer and seller each sign the Massachusetts residential purchase agreement.
2. Set the consideration. Make sure the deed will state the price as a dollar amount.
3. Buy the stamps. The seller pays the deeds excise for the deed.
4. Present the deed. Submit it to the registry of deeds with the stamps attached.
5. Keep proof of payment. It helps if you later seek an abatement.

Cover these points in the contract:

• Every party’s legal name
• The property’s address and registry reference
• Price, deposit, and mortgage contingency
• Who pays the deeds excise and other closing costs
• Inspection period and deadlines
• Closing day and when keys change hands