Massachusetts has made a significant change to the home-buying process with a new law regarding home inspections in residential real estate transactions. It introduces key protections for buyers and new responsibilities for sellers and their agents. The law, part of the broader Affordable Homes Act passed in August 2024, aims to create a fairer, more transparent home-buying experience by giving every buyer the right to inspect a property before finalizing a purchase. The law seeks to reduce pressure tactics that are common in Massachusetts' competitive housing market, especially the practice of urging buyers to waive inspection rights to make their offers more attractive.

For years, many buyers in Massachusetts, particularly first-time buyers, felt pressured to waive home inspections to compete with cash buyers or multiple offers. This created an imbalance in the real estate process, often resulting in buyers unknowingly taking on homes with serious hidden defects. The new home inspection law aims to fix this issue. It establishes a clear guideline: every buyer has the right to conduct a home inspection, and no seller or agent can require that right to be waived as a condition for acceptance.

The law includes two major updates. First, all buyers have the explicit right to conduct a home inspection if they choose. They do not have to do so, but the option must always be available without any influence or pressure. Second, sellers and their agents must provide a new mandatory disclosure form to every buyer. This form outlines the buyer's rights and the responsibilities of both parties regarding home inspections. Both the buyer and seller must sign this disclosure before or at the time the first written purchase agreement is signed.

The law applies to residential properties with one to four units, as well as condominiums and cooperative housing units intended for residential use. It does not cover commercial transactions or large multi-unit developments. After a period of regulatory review that included public input, the Executive Office of Housing and Livable Communities finalized the implementing regulations, known as 760 CMR 74, in June 2025. These rules detail how the law will work and specify prohibitions, disclosure requirements, and penalties for non-compliance.

Sellers face several key restrictions under the new rules. A seller or their agent cannot imply that they will only accept offers from buyers who are willing to waive or limit their right to a home inspection. This includes clear statements like "inspection waivers preferred" or "no inspections accepted." Furthermore, sellers cannot counteroffer with terms that would strip a buyer of their inspection right once an offer is submitted. Even subtle coercion, like preferring buyers who suggest they will not insist on an inspection, is not allowed.

The law clarifies that sellers cannot accept offers that rely on waiving or limiting a home inspection. This changes how negotiations typically occur. Previously, buyers could strengthen their offers by waiving the inspection, making them more appealing in bidding wars. Now, this approach is prohibited. Buyers and their agents cannot express any intent to waive an inspection before the offer is accepted, and sellers cannot consider such waivers in their decisions.

The "Massachusetts Mandatory Residential Home Inspection Disclosure" form is central to enforcing the law. This standard document serves as written proof that both parties understand and agree to the buyer's inspection rights. It must be signed before or at the time of the first purchase agreement, which may be the Offer to Purchase, Contract to Purchase, or, in some areas, the Purchase and Sale Agreement. The form highlights several important points:

- The seller confirms that the purchase agreement is not based on waiving or limiting the buyer's inspection right.

- The seller acknowledges that the buyer can have the property inspected by a licensed home inspector of their choice.

- The buyer will have a reasonable period after entering the agreement to decide whether to proceed with the transaction after reviewing the inspection results.

This "reasonable period" is flexible to give buyers enough time to schedule, conduct, and examine a professional inspection before making a final decision.

The law also addresses the potential for manipulation of inspection terms that might undermine its purpose. It prohibits any contractual provisions that would "render a home inspection meaningless." This broad language aims to stop sellers or agents from imposing unreasonable time limits or restrictions on inspections. For example, if a seller demanded the inspection be finished within 12 hours of signing the purchase agreement, that would likely be seen as unreasonable and against the law. The intention is to ensure buyers have a real opportunity to perform due diligence without artificial limits.

That said, the regulations allow some negotiation within reasonable limits. Buyers and sellers can discuss specific terms related to how inspection results influence the transaction. For instance, the law allows parties to negotiate a repair-cost threshold, meaning a buyer may only withdraw from the purchase if anticipated repair costs exceed a set dollar amount. This gives sellers some predictability while allowing buyers to respond if major defects arise.

Additionally, a buyer's deposit refund can be reasonably limited if they choose not to proceed after the inspection. The law deliberately uses the term "reasonable," allowing for interpretation based on each transaction's specifics. What is reasonable in one case might differ from another, depending on the property type, price, and negotiation circumstances. Disputes about reasonableness can be resolved through mediation or legal action if the parties disagree.

Several exemptions are included in the regulations. The law does not apply to:

- Sales conducted through public auctions or foreclosures, including deeds-in-lieu of foreclosure.

- Transfers among family members, like parents selling to children or other relatives.

- Property transfers as part of divorce settlements or estate planning.

- Sales of newly constructed homes, as long as the initial contract is signed before substantial completion and the seller provides a written warranty for at least one year.

These exemptions recognize that certain types of transfers either already come with strong protections or involve circumstances where inspections would not be necessary or practical.

Penalties for non-compliance with the new law are strict and intended to discourage wrongdoing. For sellers, breaching the inspection law can suggest intent to mislead or hide important facts about the property. This could lead to lawsuits for fraud or misrepresentation. For real estate agents, the consequences are harsher—a violation may be seen as an unfair or deceptive business practice under Massachusetts General Laws Chapter 93A, resulting in large fines, disciplinary actions, or the loss of their professional license. These penalties emphasize the state's commitment to ensuring compliance and protecting consumers.

While the law increases transparency and fairness, it also adds complexity to how offers are structured. Buyers can no longer use inspection waivers as bargaining tools to make their offers stand out in competitive markets. At the same time, sellers must navigate more stringent compliance duties and paperwork. Real estate agents and attorneys will play a vital role in helping clients understand these new rules and ensure all documents are properly completed.

For buyers, this law offers necessary protection. Home inspections are a crucial part of the buying process because they uncover issues that may not be apparent during a casual viewing. From structural problems to electrical or plumbing deficiencies, inspections help buyers understand a property's true condition. By ensuring every buyer has the chance to inspect, Massachusetts is lessening the risk of buyers facing expensive repairs after closing.

For sellers, the new rules imply greater transparency but also increased accountability. Sellers must ensure their property disclosures are accurate and must avoid inadvertently violating the inspection rights law by favoring certain offers. Real estate agents will need to adjust their listing materials and communications to align with the new rules, ensuring that no statements or marketing suggest disfavoring inspections.

The Massachusetts Mandatory Residential Home Inspection Disclosure Form will become an essential document in every transaction. Both buyers and sellers should familiarize themselves with its contents before signing any agreements. This form formalizes what was often handled informally, reducing misunderstandings and potential disputes.

This law also reflects a larger national trend. In many competitive housing markets across the U.S., buyers have increasingly waived inspections to compete for homes. Lawmakers in various states have started to see this as a consumer protection issue. Massachusetts' approach could serve as a model for other states looking to balance competitiveness with fairness and buyer protection.

Both buyers and sellers in Massachusetts should prepare for these changes. Buyers should review their inspection strategies with their realtor and attorney to ensure their offers comply with the new rules. They should also be ready to act quickly once a contract is established, as they will need to schedule inspections within the reasonable timeframe specified in the agreement. Sellers should evaluate their listing agreements, marketing materials, and negotiation practices with their agents to ensure full compliance and avoid potential liability.

This new law is meant to create a more level playing field, protecting consumers and promoting transparency in a competitive housing market. It affirms that the right to a home inspection is essential for making informed financial decisions. By setting clear expectations and prohibiting actions that undermine buyer confidence, Massachusetts ensures that the home-buying process remains fair, honest, and accessible.

For further information, the state offers the full text of Chapter 150 of the Acts of 2024, along with the finalized regulations (760 CMR 74) and summary materials published by the Governor’s Executive Office of Housing and Livable Communities. Reviewing these documents can help professionals and consumers stay informed as Massachusetts shifts to a more balanced and transparent real estate market—one where every buyer can make a fully informed decision about what is likely the most significant purchase of their life.