What a municipal lien certificate is and what it shows
Under M.G.L. c. 60, section 23, the town tax collector must give a certificate of "all taxes and other assessments, including water rates and charges, and charges due to municipal lighting plants" that are liens on the parcel and payable on it. The statute says the certificate must be itemized and show the amounts payable, and if an amount cannot yet be fixed, the certificate says so.
In plain terms, it shows what the house owes the town: real estate taxes, betterments and special assessments, and water and sewer charges. Your attorney and the buyer's attorney use it to see what must be paid out of the sale proceeds so the buyer gets the property without town liens.
Fee, timing and how to get one
| Item | What the statute says |
|---|---|
| Who asks | Any person, by written application to the collector of taxes |
| Fee | $25 per certificate |
| Time to issue | Within 10 days, excluding Saturdays, Sundays and holidays, in a city or a town with more than 5,000 inhabitants. Within 20 days in a town with 5,000 or fewer |
| How long it can be recorded | Within 150 days after its date |
| Registry recording fee | $50 if the certificate is recorded or registered |
Most sellers never apply themselves. Your attorney orders the certificate, usually a few weeks before closing. Order early so a town delay does not push back the closing date.
Why it matters: what it protects and what it does not
A certificate recorded within the 150-day window discharges the property from town tax and assessment liens that do not appear on the certificate. This is why buyers' attorneys insist on one. There are two limits in the statute:
- It does not cover liens where a taking or sale by the municipality has been recorded, or a lien statement or order has been filed, if that lien must be released by some other document. Those need their own payoff and release.
- It does not release the owner's personal liability for the tax or charge. If the certificate missed something, the person who was assessed owner when the lien arose can still owe it.
If your house has back taxes, a recorded taking or "tax title," the lien certificate will not be the whole story. See liens and judgments when selling and tax lien or back taxes.
How Massachusetts real estate tax bills work
The tax year is the town's fiscal year, July 1 to June 30. M.G.L. c. 59, section 57 says bills are due July 1 for all purposes except interest, and interest at 14% per year runs on late balances after the statutory dates.
Towns that accept section 57C bill quarterly or semi-annually:
| Schedule | Preliminary bills | Actual bills |
|---|---|---|
| Quarterly | Due Aug 1 and Nov 1 | Due Feb 1 and May 1 |
| Semi-annual | Due Oct 1 | Due Apr 1 |
The preliminary tax may not exceed 50% of 102.5% of the prior year's tax. The second half of the year is billed after the new tax rate is set, so it can be higher or lower. Which towns are quarterly or semi-annual varies, so ask your town collector or look at your own bill.
Real estate tax proration at closing
Proration splits the year's tax between buyer and seller by days. The usual practice is that the seller is responsible for taxes up to the closing date and the buyer after, with a cash adjustment for whatever was already paid. The purchase and sale agreement sets the rule, so read yours. We did not find an official Massachusetts statement of the standard split.
Illustration with made-up numbers: annual tax $7,200 for a July 1 to June 30 year and a closing on October 15. The seller owns the house from July 1 to October 14, which is 106 days. Seller's share = $7,200 x 106 / 365 = $2,091. The buyer owns the remaining 259 days.
Then compare to what the seller has already paid. If the seller paid the August 1 installment of $1,800 and not the November 1 one, the seller owes about $291 more to cover the days up to closing, and the buyer pays November 1 for their days. If the seller paid ahead beyond the closing date, the buyer credits the seller. The settlement statement shows the net.
The tax amount used can be the current bill or an estimate if the bill is not out yet. Ask your attorney whether any re-proration is agreed after the final bill.
Water and sewer: the final reading
Water and sewer charges are covered by the lien certificate when they are unpaid, because they can become liens. Most Massachusetts water departments will do a final meter reading for the sale so the seller pays through the closing date. Ask your attorney or the water department how to schedule it, since procedures differ by town. Some towns charge a fee. We did not verify fees or procedures for individual towns.
Other utilities (gas, electric) are closed out by the seller directly, and not through the lien certificate. See how to read a seller closing statement to find these lines.