New home inspection law takes effect in Massachusetts. Here's what to know.
Looking to buy or sell a house in Massachusetts? A key change has gone into effect when it comes to home inspections.
As of Wednesday, a new rule bans sellers or their agents from selling their house on the condition that the buyer waive a home inspection. The regulation is part of the Affordable Homes Act signed into law by Gov. Maura Healey last year.
Housing and Livable Communities Sec. Ed Augustus said in June when the new policy was announced that it "creates a fairer, more even playing field for buyers and sellers."
"A home inspection is an important step in buying a property," Augustus said in a statement. "Homebuyers must have the ability to make informed financial decisions and be given a clear picture of needed repairs or safety issues that could arise."
New home inspection law in Massachusetts
The state says that "homeowners have too often been pressured" to waive a home inspection so they can make a competitive offer in what's been a red-hot housing market over the past several years. Sellers will now be required to provide a written disclosure to buyers, telling them that acceptance of an offer is not contingent on waiving a home inspection.
The new rule doesn't mean inspections are required for all home sales in Massachusetts. Buyers can choose not to conduct a home inspection, "as long as the decision is not influenced by the seller or their agent," the state says.
There are some exemptions to the new policy. It does not apply to newly constructed homes, as long as the seller offers a one-year warranty. Also exempt are sales to family members or trusts.
Penalty for violating home inspection law
A real estate agent's failure to follow the new rule "shall constitute an unfair or deceptive act or practice," and agents could risk losing their license.
If a seller is facing a lawsuit from a homebuyer, violating the home inspection rule may be evidence of their "intent to misrepresent or conceal a material fact in a real estate transaction," the state says.