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Audit of the Land Court Department

March 31, 2022 · Land Court Department · Read the full official report on mass.gov ↗

Published March 31, 2022 Audit covers July 1, 2019 – June 30, 2021 Under Suzanne M. Bump · 2011–2023

In plain English
The audit found problems with how the Land Court tracked partition commissioners and handled some old escrow money, but the court said it is taking steps to fix them.
source
“Based on its response, LCD is taking steps to address this issue.”
Read the plain-English breakdown
What is this?

This is a state performance audit of the Massachusetts Land Court Department covering July 1, 2019 through June 30, 2021.

“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2019 through June 30, 2021.”
Why was it audited?

Auditors checked whether the Land Court properly handled escrow funds and properly oversaw its list and appointments of partition commissioners.

“The purpose of this audit was to determine whether LCD administered escrow funds in accordance with Sections 1.9, 3.2.3, and 3.9 of the Executive Office of the Trial Court’s Fiscal Systems Manual, as well as Section 6 of Chapter 200A of the General Laws, and whether LCD oversaw its partition commissioner1 list and appointments in accordance with Section 12 of Chapter 241 of the General Laws and Sections 1–4, 5d, 6, and 7 of Rule 1:07 of the Massachusetts Rules and Orders of the Supreme Judicial Court.”
Why it matters

The problems matter because people need accurate public court records, and property owners may have to do extra work to get money that should have been handled sooner.

“In addition, because LCD did not allow the real estate stakeholders enough time to take necessary action to retrieve their funds from LCD, now the stakeholders must file additional paperwork to retrieve their funds from UPD.”
What's in it for me?

If you are involved in a Land Court property case, this affects whether you can trust the public list of court-appointed partition commissioners and whether unclaimed escrow money is handled on time.

“In addition, real estate stakeholders cannot view an accurate list in order to select partition commissioners.”
The bottom line

The auditor found three main issues: an inaccurate public list of partition commissioner appointments, delayed transfer of abandoned escrow funds, and missing commissioner oath records.

“LCD did not retain notarized “Commissioner Oaths” for 11 of 58 partition commissioner appointments in either MassCourts or its hardcopy files.”
What happens next

The Land Court said it has started using automated reports, tracking systems, reminders, and updated procedures to address the audit findings.

“The Recorder's Office has replaced the manually maintained list by implementing use of a MassCourts generated weekly list so all appointments from the previous week now appear in the Master Public Book.”
Why it's significant

This is significant because the audit found the Land Court was not fully following required rules for escrow funds and partition commissioner oversight.

“Does LCD oversee its partition commissioners in accordance with Section 12 of Chapter 241 of the General Laws and Sections 1–4, 5d, 6, and 7 of Rule 1:07 of the Massachusetts Rules and Orders of the Supreme Judicial Court?”
Jargon, unpacked

A partition commissioner is a lawyer chosen by a judge to help divide or sell property when owners cannot resolve it themselves.

“A partition commissioner is an attorney appointed by a judge to determine how a property should be divided.”

1 figure(s) pending source verification - not shown

What the Auditor checked

What the Auditor found

The Land Court Department's publicly available master list of partition commissioners was incomplete and inaccurate.
recordkeeping/documentationinternal controls

Why it matters: The public and real estate stakeholders could not view an accurate list of partition commissioners and assigned case numbers.

Standard: Rule 1:07 of the Massachusetts Rules and Orders of the Supreme Judicial Court ( Rule 1:07 of the Massachusetts Rules and Orders of the Supreme Judicial Court )

1 recommendation
  • LCD should develop policies and procedures to track partition commissioners assigned to cases and ensure that the master list of partition commissioners is complete and accurate based on their assignments to cases.agency: already implemented
Agency response & Auditor reply
Agency: "The Recorder's Office has replaced the manually maintained list by implementing use of a MassCourts generated weekly list so all appointments from the previous week now appear in the Master Public Book."
Auditor: "Based on its response, LCD is taking steps to address this issue."
The Land Court Department did not promptly transfer abandoned escrow funds to the Unclaimed Property Division.
cash handlingreporting timelinessinternal controls

Why it matters: LCD spent time and resources maintaining funds, and some stakeholders had to file additional paperwork with UPD to retrieve their funds.

Standard: Section 3.9 of the Executive Office of the Trial Court’s Fiscal Systems Manual and Section 6 of Chapter 200A of the Massachusetts General Laws ( Section 3.9 of the Executive Office of the Trial Court’s Fiscal Systems Manual; Section 6 of Chapter 200A of the Massachusetts General Laws )

2 recommendations
  • LCD should establish and implement procedures for abandoned escrow account funds.agency: already implemented
  • LCD should notify real estate stakeholders 60 days before transferring property to UPD.agency: already implemented
Agency response & Auditor reply
Agency: "Land Court has implemented or reinforced policies to ensure adherence with Executive Office of the Trial Court policies and procedures ~"
Auditor: "Based on its response, LCD is taking steps to address this issue."
The Land Court Department did not retain required notarized Commissioner Oaths for some partition commissioner appointments.
recordkeeping/documentationinternal controls

Why it matters: LCD could not be sure those partition commissioner appointments were legally binding.

Standard: Section 12 of Chapter 241 of the General Laws, Standing Order 3-20, Trial Court record retention schedule, and Trial Court Rule XIV ( Section 12 of Chapter 241 of the General Laws; Standing Order 3-20: Supplement to Emergency Measures in Response to Coronavirus Outbreak; Trial Court Rule XIV )

1 recommendation
  • LCD should amend its policies and procedures to ensure that “Commissioner Oaths” are maintained in its hardcopy files and uploaded to MassCourts.agency: already implemented
Agency response & Auditor reply
Agency: "To address this issue, the Assistant Clerk sent a reminder email to all session clerks of their responsibility to ensure that the oath is attached to the Appointment Order and tracked for completion, return, docketing and uploading to MassCourts."
Auditor: "Based on its response, LCD is taking steps to address this issue."

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