Interest accrued on said deposit will be paid to the tenant annually."

Make sure that you do not let it get to that point because additional administration fees and penalties start accruing.

Interest in RE is the rate/360 x the number of days the principal accrues to any scheduled payment, then the is an application to principal, the that balance x rate/360 x the days accrued.

Not sure what MA does, but check with the Assessor to see if taxes are accruing, if they are, it's still privately owned, if not the state or taxing authority may have it.

Typically as a borrower you would have wanted to make a better arrangement where that account accrues interest while sitting at the bank.  

If you buy above market value, you lose your exit strategy, and are stuck w/ the property until you pay down the mortgage, accruing the equity needed to get out of the property above water.

We will eventually place a lien against the property and continue to accrue penalties, late payments and attorneys fees.  

If you can buy, tell the lender, better to give a letter of intent as they may slow the process that accrues more expense, to an extent.

Here is my answer:I invest in Arizona and the interest is calculated exactly as you described - where the annual rate is divided by 12 - and that is how much accrues each month.

A payoff must be calculated for a sale, you can't give a payoff with accrued interest per day if later you advance or incur additional expenses.