Massachusetts Home Buyer Guide

The Massachusetts House of Representatives and Senate agreed on a final $5.16 billion housing bond bill that included Senate language prohibiting offers to purchase a home conditioned on a home buyer waiving or limiting their rights to a home inspection.

Governor Maura Healey signed the housing bond bill, which included the home inspection protection, on August 6, 2024, despite calls from the Massachusetts Association of Realtors to veto the consumer protection language.

See What Buyers Brokers Only Had To Say: https://www.einpresswire.com/article/732999443/buyer-agents-support-ma-legislature-s-home-inspection-protections

The amendment's language directs the Executive Office of Housing and Livable Communities to promulgate regulations stating that offers to purchase a home cannot be conditioned on the home buyer waiving their right to an inspection. It's not clear when the new regulations will take effect.

The bond bill's language, added by amendment to the Senate version and passed 39-0, provides few exceptions to the home inspection contingency waiver.

Section 101. The executive office of housing and livable communities shall promulgate regulations to ensure that no seller of a residential structure or a residential condominium unit, or agent thereof, shall: (i) condition the acceptance of an offer to purchase on the prospective purchaser's agreement to waive, limit, restrict or otherwise forego any prospective purchaser's right to have the structure or unit inspected, except when the sale of the structure or unit is to occur at an auction conducted by an auctioneer licensed under chapter 100; or (ii) accept an offer to purchase from any prospective purchaser, or agent thereof, who, in advance of the seller's acceptance of said offer, informs the seller, either directly or indirectly, that the prospective purchaser intends to waive, in whole or in part, the prospective purchaser's right to inspection; provided, however, that the seller may accept such an offer without violating this section when the prospective purchaser is: (A) the spouse, sibling, child,parent, grandparent, grandchild, great-grandchild or great-grandparent of the seller; or (B) the former spouse of the seller and the sale of the structure or unit is being made pursuant to a judgment or order under chapter 208; provided further, that other limited exceptions may be provided for by regulation." 

In late June, Massachusetts state senators unanimously adopted an amendment proposed by Millbury Senator Michael Moore that essentially prohibited waiving home inspections. The House's housing bond bill did not include such language, but the final bill sent to the governor was nearly identical to Moore's amendment.

There are two sides to the debate over prohibiting the waiver of home inspections. Some argue it is an inappropriate government intrusion into a private agreement. On the other hand, others believe the prohibition is necessary to protect consumers.

Active residential real estate agents know the alarming number of prospective home buyers making offers that waive the home inspection contingency. Busy buyer agents estimate that 60 percent to 70 percent of home buyers in Greater Boston waive the home inspection contingency. Southern New Hampshire is similar.

A few weeks ago, a Buyers Brokers Only client had a condominium home inspection. What everyone thought would be an uneventful inspection uncovered dangerous aluminum wiring from the 1970s at the electric box and to the outlets. The estimated cost of repair exceeded $10,000.

The seller initially accepted an offer from another home buyer who waived their home inspection contingency. Shortly after the offer was accepted, the buyer had to withdraw the offer because of financing issues. If not for financing issues, they would have purchased a condo with faulty wiring and had no idea.