Massachusetts has implemented a significant change in its real estate regulations with the introduction of a new law regarding home inspections. As of March 15, 2024, sellers and their agents are prohibited from requiring buyers to waive a home inspection as a condition of sale. This regulation is part of the Affordable Homes Act, which was signed into law by Gov. Maura Healey in 2023.
Housing and Livable Communities Secretary Ed Augustus emphasized the importance of this law during a statement in June 2023, stating that it “creates a fairer, more even playing field for buyers and sellers.” He further noted that a home inspection is a crucial step in the property buying process, allowing buyers to make informed financial decisions and understand any necessary repairs or safety concerns.
Key Provisions of the New Law
The Massachusetts government has observed that homeowners frequently faced pressure to waive home inspections in order to submit competitive offers in a booming housing market. Under the new law, sellers must provide a written disclosure to prospective buyers, clarifying that accepting an offer does not require the waiver of a home inspection.
Importantly, the new regulation does not mandate inspections for all home sales. Buyers still have the option to forgo a home inspection, provided their choice is not influenced by the seller or their agent. This flexibility allows buyers to make decisions that align with their individual circumstances.
There are specific exemptions to the policy. Newly constructed homes are excluded if the seller offers a one-year warranty. Additionally, transactions involving family members or trusts are also exempt from the new rules.
Consequences for Non-Compliance
Failure to adhere to the new home inspection law can have serious repercussions for real estate agents. According to the state, such violations “shall constitute an unfair or deceptive act or practice,” which could result in the loss of their license. Furthermore, if a seller faces a lawsuit from a homebuyer, any breach of the inspection requirement might serve as evidence of an intention to misrepresent or conceal material facts in a real estate transaction.
As Massachusetts navigates its evolving real estate landscape, this new home inspection law aims to protect buyers and ensure transparency in the housing market. By enhancing the home buying process, the state hopes to foster a more equitable environment for both buyers and sellers.
