realestate

Rethinking the role of home inspections in real estate negotiations.

New state law restricts real estate agents from discussing certain contingencies with buyers and sellers.

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new state law aims to level the playing field in Massachusetts' competitive real estate market by preventing homebuyers from being pressured into waiving their right to a home inspection. The law, which takes effect on October 15, prohibits contract provisions that could limit or eliminate a buyer's ability to schedule and review a home inspection.

    Home inspectors have long warned about the dangers of buying a house without an inspection, citing cases where buyers have discovered costly repairs after the sale. Morgan Cohen, owner of MKC Associates, has done post-purchase inspections for homeowners who waived their right to inspect before buying and later regretted it. He's found issues like knob and tube wiring, underground oil tanks, and crumbling concrete foundations.

    State Senator Michael Moore proposed a bill that was folded into the Massachusetts' Affordable Homes Act, which was signed into law in 2024. The law aims to protect homebuyers from costly surprises and ensure they have access to vital information about the properties they're considering.

    While advocates applaud the intention of the law, some question how it will be enforced. A buyer's agent could still find ways to communicate that their client will forgo an inspection if their offer is accepted, without putting it in writing. Consequences for agents found violating the new law include liability for triple the cost of actual damages.

    Real estate professionals like Scott Kriss and Rich Rosa support the regulations, citing consumer protection initiatives in Massachusetts' history. They argue that home inspections protect not only buyers but also sellers and real estate agents from costly lawsuits.

    However, some industry groups have expressed concerns about the implementation timeline, liability language, and exemptions. The Greater Boston Real Estate Board, the Massachusetts Association of Realtors, and others asked for a postponement of the regulations beyond their original June 15 deadline.

Real estate professionals examine home inspection process in property negotiations and sales.