Starting October 15, 2025, Massachusetts will implement significant changes to home inspection practices under the regulation 760 CMR 74.00. This law, part of the Affordable Homes Act, aims to protect homebuyers by ensuring their right to a home inspection is not waived or limited during residential real estate transactions.
Understanding these changes is crucial for both buyers and sellers to navigate the evolving real estate landscape effectively.
Key Provisions of the New Law
For Buyers: Enhanced Rights
- Guaranteed Right to Inspection: Buyers cannot be required or encouraged to waive their right to a home inspection.
- Written Disclosure Requirement: Sellers must provide a written disclosure affirming the buyer’s right to a home inspection before or at the signing of the first purchase contract.
- Inspection Contingency: Offers and purchase agreements must include a contingency allowing buyers to conduct a home inspection and make decisions based on the findings.
For Sellers: New Obligations
- Prohibition on Inspection Waivers: Sellers cannot accept offers conditioned on the waiver of a home inspection.
- Disclosure Requirement: Sellers must provide a written disclosure to buyers, affirming the buyer’s right to a home inspection.
- Compliance with Regulations: Sellers and their agents must ensure that all contractual documents comply with the new regulations to avoid potential legal issues.
Implications for the Real Estate Market
- Increased Transparency: Buyers can make more informed decisions, knowing they have the right to inspect the property thoroughly.
- Level Playing Field: The law prevents sellers from pressuring buyers into waiving inspections, fostering a more equitable market.
- Potential Delays: While the law aims to protect buyers, it may lead to longer transaction times as inspections and negotiations are integrated into the process.
Recommendations for Buyers and Sellers
For Buyers
- Exercise Your Rights: Take advantage of your right to a home inspection to identify potential issues before finalizing the purchase.
- Review Disclosures Carefully: Ensure that the seller provides the required written disclosure affirming your right to a home inspection.
- Consult Professionals: Work with real estate agents and legal professionals to navigate the new regulations and protect your interests.
For Sellers
- Update Contracts: Ensure that all offers and purchase agreements comply with the new inspection contingency requirements.
- Provide Required Disclosures: Deliver the written disclosure to buyers as mandated by the new law.
- Stay Informed: Keep abreast of any further regulatory changes to maintain compliance and avoid potential legal issues.
Conclusion
The implementation of 760 CMR 74.00 marks a significant shift in Massachusetts real estate practices, emphasizing buyer protection and transparency. Both buyers and sellers must familiarize themselves with the new requirements to ensure smooth and compliant transactions.
For more detailed information, visit the official Massachusetts Residential Home Inspections page or contact our team.
