If you are planning to buy or sell a home in Massachusetts, it’s important to:
Understand your rights and obligations under the new law
Discuss offer strategies carefully with your REALTOR® and attorney
Ensure that all required disclosures are completed correctly
For official documents and the latest updates, you can refer to:
Text of Statute: Chapter 150 of the Acts of 2024
Regulations: 760 CMR 74
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Massachusetts has implemented a new law that significantly changes how home inspections are handled in real estate transactions, which takes effect this October.
This law, part of the Affordable Homes Act, a statute passed in August 2024, aims to protect buyers’ rights to conduct home inspections and introduces specific restrictions on how offers involving inspection waivers can be made and not made.
After several delays in late 2024 and early 2025, the final regulations were published by the State’s Executive Office of Housing and Livable Communities in June. These regulations give additional details on how the law will operate.
The first thing to keep in mind is that the law applies to purchase agreements dated after October 15, 2025, and only on the sale of residential buildings with one to four units, condominium units, and co-op shares tied to residential occupancy.
Overview of the New Requirements
As for the details of the regulations, the first thing to know is the new requirements being placed on sellers.
First, sellers cannot state that they’ll only accept offers from buyers who agree to waive, limit, or forego a home inspection: Sellers or their agents are not allowed to require or suggest that they will only accept offers where the buyer agrees to waive their right to a home inspection. As an example, this will mean that a seller cannot counter a buyer’s offer with a provision that would waive the buyer’s ability to conduct a home inspection.
Second, sellers cannot accept an offer conditioned on the waiver of the home inspection. During negotiations, buyers should not convey their intent to waive a home inspection. Presumably, this is intended to prevent pressure on buyers to waive an inspection in competitive situations. However, it also means that a buyer cannot make their offer more attractive by indicating their intent to waive an inspection in advance of acceptance.
Third, there is a new disclosure requirement. Sellers or their agents will be required to provide a written disclosure to be signed by both parties no later than the first written contract in the sale, which is typically the Offer to Purchase, although in some parts of the state, it can be the Purchase and Sale Agreement. The disclosure will cover several points:
A notice that the seller represents and warrants that the purchase agreement is not contingent on the waiver or limitation of the buyer’s choice to have a home inspection.
A seller’s acknowledgement that the buyer may have the property inspected by a licensed home inspector
A notice that the seller will provide the buyer with a “reasonable” period after entering into the purchase agreement to decide whether to proceed with the transaction.
As of the time of this writing, the State has not yet provided this disclosure form.The final regulations softened some of the earlier, more onerous draft provisions. First, they make it clear that once the buyer and seller have a signed purchase agreement, there is nothing
that requires the buyer to proceed with an inspection- they may waive it if they choose. Also, it is now clear in the regulations that the parties can structure the purchase agreement in a way that would limit the buyer’s deposit refund if the buyer chooses not to proceed with the transaction.
What about Exemptions?
The regulations list several categories of transactions that are exempt. Those include:
- Public auctions, transfers involving a foreclosure, or deed-in-lieu of foreclosure
- Transactions where the buyer is a relative of the seller
- Sales pursuant to a divorce proceeding
- Certain transactions conducted for estate planning purposes
- Certain new construction sales
- Penalties for Non-Compliance
Failure to comply comes with harsh penalties. For sellers, a violation may be used as evidence of an intent to misrepresent or conceal a material fact about the home. For agents, a violation may be considered an unfair or deceptive business practice under Massachusetts consumer protection laws (Chapter 93A).
Summary
This law is designed to create a more level playing field for home buyers by ensuring all buyers have a fair opportunity to inspect a property. However, it introduces significant changes to how offers are structured and what can be communicated before acceptance.
This post was written by Michael McDonagh, General Counsel, Lamacchia Companies
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