Thank
you to Scott Pittman and Michael Pill for a thoughtful article about dealing
with MGL Chapter 61, 61A and 61B liens
at closings. The article appears in the
June 25th edition of Lawyer’s Weekly. They conclude that
absent a REBA Title Standard, a Massachusetts Department of Revenue Form CL-6
and Form CL-9 must be obtained and recorded to effectively release the lien.
Their article appears, partially, to be a plea to the REBA Title Standards
Committee to consider a Title Standard to allow the recording of either form to
release the lien.
Their
article goes on to reference the municipal right of first refusal that arises
upon the sale of land for, or conversion to residential, commercial or
industrial use. But the article does not say that in order to clear the title
to land which is subject to a Chapter
61, 61A or 61B lien that one or more affidavits must also be recorded. For
example, MGL Chapter 61A, Section 14 (which was materially revised in 2008)
describes in detail the steps that must be taken in the event a party wishes to
convert their land, which includes providing a detailed notice of intent to
sell or convert. The statute anticipates that the landowner will then record an
affidavit that the proper notice was given:
“A notarized
affidavit that the landowner has mailed or delivered a notice of intent to sell
or convert shall be conclusive evidence that the landowner has mailed the
notice in the manner and at the time specified. Each affidavit shall have
attached to it a copy of the notice of intent to which it relates.” Mass. Gen.
Laws Ann. ch. 61A, § 14 (West)
After
the notice is provided, the land may be conveyed if a notice of non-exercise is
recorded or 120 days passes without recording a notice of exercise or a notice
of assignment.
“No sale or
conversion of the land shall be consummated until the option period has expired
or the notice of nonexercise has been recorded with the registry of deeds, and
no sale of the land shall be consummated if the terms of the sale differ in any
material way from the terms of the purchase and sale agreement which
accompanied the bona fide offer to purchase as described in the notice of
intent to sell except as provided in this section.” Mass. Gen. Laws Ann. ch.
61A, § 14 (West)
“Failure to record
either the notice of exercise or the notice of assignment within the 120 day
period shall be conclusive evidence that the city or town has not exercised its
option.” Mass. Gen. Laws Ann. ch. 61A, § 14 (West)
PAUL
F. ALPHEN, ESQUIRE
BALAS, ALPHEN & SANTOS, P.C.
paul@lawbas.com
http://www.lawbas.com
