MA’s New Home Inspection Waiver Rules:

This new rule — part of the Affordable Homes Act and published under 760 CMR 74.00: Residential Home Inspection Waivers — is designed to protect buyers in a competitive market. In recent years, many buyers felt forced to waive inspections to make their offers more attractive, sometimes only to discover major defects after the closing. The new regulation aims to end that practice.

What’s Changing

Here’s the heart of the regulation:

• No More Required Waivers: Sellers, listing agents, and brokers cannot condition the acceptance of an offer on the buyer giving up their inspection rights. Even hinting that a waiver is expected is off-limits.
• Mandatory Disclosure: Sellers (or their agents) must give buyers a written notice confirming that the purchase is not contingent on waiving an inspection. The notice must also inform buyers of their right to hire a licensed home inspector and to have a reasonable period to complete the inspection.
• Limited Exceptions: Certain transactions are exempt, including new home sales by builders, transfers between family members, and foreclosures or auctions.

What Real Estate Professionals Need to Update

These changes mean agents, lenders, and attorneys will need to revisit their standard forms and practices:

• Listing Agreements and Purchase & Sale Contracts: Remove any language that suggests waiving inspections as a competitive tactic.
• Disclosure Checklists: Add the new required notice and make sure it is provided in writing to every buyer.
• Training and Client Conversations: Agents should prepare to explain to sellers that inspection waivers are no longer an option. Attorneys should counsel clients on compliance and be alert for outdated contract language.
• Closing Procedures: Lenders and closing attorneys should confirm that inspection rights and notices have been properly documented before disbursement.

Why It Matters: Chapter 93A Liability

Violating the new inspection rules may expose sellers, brokers, or even attorneys to claims under Massachusetts General Laws Chapter 93A (Consumer Protection Act). That means:

• Unfair or Deceptive Practices: If a buyer is pressured into waiving inspection rights or isn’t provided the proper notice, it could be considered an unfair or deceptive act.
• Damages and Fees: Chapter 93A allows for multiple damages and recovery of attorney’s fees — a costly risk for professionals and clients alike.
• Delayed or Voided Closings: Non-compliance could trigger disputes that stall or cancel transactions, undermining client trust and professional reputations.