Feb 14, 2025 | Buying Real Estate, Consumer Tips, Home Buyer Tips, Home Buying Tips, Home Mortgage, Home Mortgage Tips, Home Seller Tips, Home Selling Tips, Home Tips, Housing Market, Investment Properties, Mortagage Tips, Mortgage, Mortgage Lenders, Mortgage Tips, News, Real Estate, Real Estate Agent Information, Real Estate Tips, Real Estate Trends, Realtors, Selling Real Estate, Selling Your Home
Below is our summary of significant legislative development that impacts our industry. The Massachusetts General Court has introduced a bill titled “An Act protecting consumer rights in purchasing safe and habitable homes.” This bill, presented by Representative Brian M. Ashe and others, aims to enhance consumer protection by ensuring that buyers have the right to conduct home inspections when purchasing residential properties. Below, I have provided a detailed summary of the key provisions and implications of this bill for real estate professionals.
The bill aims to ensure that buyers have the right to home inspections when purchasing residential properties, including houses and condominiums.
An inspection involves a licensed home inspector evaluating various components of the property, such as heating, cooling, plumbing, electrical systems, structural components, foundation, roof, and more.
- Buyers have the right to have the property inspected within 10 days of the seller accepting their offer, unless a different period is agreed upon in writing.
- Sellers cannot condition the acceptance of an offer on the buyer waiving their right to an inspection, except in certain cases like auctions or sales to close family members.
Every offer to purchase must include a clause informing the buyer of their right to an inspection and the conditions under which they can revoke the offer if significant defects are found.
- Sellers must comply with the inspection rights and cannot accept offers that waive these rights unless specific exceptions apply.
- Violations by sellers can result in damages to the buyer and civil penalties.
An inspection involves a licensed home inspector evaluating various components of the property, such as heating, cooling, plumbing, electrical systems, structural components, foundation, roof, and more.
This bill is designed to protect consumers by ensuring they have the opportunity to identify any significant issues with a property before finalizing the purchase.
The legislation has several implications for for real estate agents, brokers and Realtors:
Disclosure and Compliance:
- Real estate agents must ensure that all offers to purchase include the required language informing buyers of their right to a home inspection.
- Agents must be aware of the 10-day inspection period (or longer if agreed upon) and ensure that this is communicated clearly to both buyers and sellers.
- Agents cannot advise or encourage sellers to condition the acceptance of an offer on the buyer waiving their right to an inspection, except in specific cases like auctions or sales to close family members.
- They must ensure that sellers do not accept offers from buyers who indicate an intention to waive the inspection right, unless the exceptions apply.
Legal and Financial Implications:
- If a seller violates the provisions of this bill, the real estate agent could be implicated in any resulting legal actions or penalties. This includes potential civil penalties and damages to the buyer.
- Agents need to stay informed about the legal requirements and ensure their practices comply with the new regulations to avoid liability.
- The bill enhances consumer protection, which may increase buyer confidence in the real estate market. Agents can use this as a selling point to assure buyers that their rights are protected.
- Agents should be prepared to guide buyers through the inspection process and help them understand their rights and options if significant defects are found.
Overall, real estate professionals will need to adapt their practices to ensure full compliance with the new regulations, prioritize transparency, and protect the interests of their clients. This may involve additional training and adjustments to standard operating procedures.
Statutory Offer to Purchase Language
According to the bill each offer to purchase a residential structure or residential condominium unit shall include the following language:
“Buyer is entitled under section 115 of chapter 93 of the General 33 Laws to choose to have the premises inspected at Buyer’s expense within 10 days, or longer as Seller and Buyer may agree in writing, of Seller’s acceptance of Buyer’s offer to purchase. Unless one of the exceptions in said section 115 applies, neither Seller nor Buyer may make acceptance of this offer to purchase contingent upon waiver, limitation or restriction of Buyer’s right to choose to obtain a home inspection. Should Buyer choose to have the premises inspected, if it is the inspector’s opinion that the premises contain serious structural, mechanical or other defects and if the repair of such defects would cost Buyer in the aggregate more than the amount indicated by the Buyer herein ($________), then Buyer shall have the option of revoking this offer to purchase by written notice to the Seller or Seller’s agent within 5 business days of the date of the inspection, or longer as Seller and Buyer may agree in writing. Such notice shall be accompanied by a copy of the inspector’s opinion and a copy of cost estimates obtained by Buyer.”
Understanding and complying with this new legislation is crucial for all real estate professionals. By staying informed and adapting practices, we can better serve our clients and uphold the integrity of our industry. If you have any questions or need further clarification on this bill, please do not hesitate to reach out to one of our Real Estate Attorneys.
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Jul 11, 2023 | Investment Properties
Real estate investing has been recognized as a great opportunity for building wealth and achieving financial freedom. Achieving success in the real estate market does require a strategic approach, careful analysis, and informed decision-making.
Before diving into the world of real estate investing, it is essential to define your investment goals. Are you looking for long-term rental income, quick fix-and-flip profits, or a combination of both? Clarifying your objectives will guide your investment decisions and help you stay focused on your path to success.
Educate Yourself:
The first secret to successful real estate investing is to educate yourself thoroughly about the market, trends, and various investment strategies. Take the time to learn about different types of properties, financing options, rental laws, and local market conditions. Attend seminars, read books, follow industry experts, and join real estate investor associations to gain valuable knowledge and insights.
Set Clear Investment Goals:
Before jumping into real estate investing, it’s essential to define your investment goals. Establish a clear investment strategy, including your desired return on investment (ROI), time horizon, and risk tolerance. Setting specific goals will help you stay focused and make informed investment decisions.
Build a Reliable Network:
Building a strong network of professionals is crucial for success in real estate investing. Connect with real estate agents, brokers, property managers, contractors, and other investors. They can provide valuable advice, help you find lucrative deals, and collaborate on joint ventures. Networking also allows you to stay updated on market trends and opportunities.
Conduct Thorough Due Diligence:
Performing comprehensive due diligence is a key secret to successful real estate investing. Always research and analyze properties before making a purchase. Evaluate factors such as location, potential for appreciation, rental demand, property condition, and potential repairs or renovations required. Thorough due diligence minimizes risks and increases the chances of a profitable investment.
Diversify Your Portfolio:
Successful real estate investors understand the importance of diversification. Don’t put all your eggs in one basket. Instead, spread your investments across different property types, locations, and investment strategies.
Adapt to Market Conditions:
Real estate markets are dynamic and subject to changes. Keep a close eye on market trends, interest rates, demographic shifts, and regulatory changes. This information will help you identify emerging opportunities and make informed investment decisions.
Successful real estate investing is a combination of knowledge, strategy, and adaptability. By educating yourself, setting clear goals, building a reliable network, conducting thorough due diligence, diversifying your portfolio, leveraging financing wisely, and adapting to market conditions, you can unlock the secrets to success in the real estate investment arena. Remember, patience, perseverance, and continuous learning are essential elements on your journey to becoming a successful real estate investor.
May 4, 2023 | Investment Properties
Passive real estate investing refers to an investment strategy where an individual invests in real estate assets without being actively involved in the management of those assets. In passive real estate investing, an investor typically provides funds for a real estate project, such as a rental property or commercial development, and receives a return on investment based on the performance of that project.
Passive real estate investing can take various forms, such as investing in real estate investment trusts (REITs), crowdfunding platforms, or private real estate funds. These investment vehicles allow investors to access real estate investments without the need to purchase and manage properties themselves.
Ways To Get Involved In Passive Real Estate Investing
It is important to thoroughly research and understand the risks associated with any real estate investment before committing funds. There are several ways to get involved in passive real estate investing, including:
Real Estate Investment Trusts (REITs): REITs are investment vehicles that own and manage income-generating real estate properties. Investors can buy shares in a publicly traded REIT, which typically pays dividends based on the rental income generated by its properties.
Real Estate Crowdfunding Platforms: Real estate crowdfunding platforms allow investors to pool their funds with other investors to invest in a specific real estate project. Investors can choose which projects to invest in and typically receive a return based on the project’s performance.
Private Real Estate Funds: Private real estate funds are investment funds that pool capital from multiple investors to invest in real estate properties. These funds are managed by a professional team that is responsible for identifying and managing the properties in the fund’s portfolio.
Real Estate ETFs: Exchange-traded funds (ETFs) are similar to REITs in that they invest in real estate properties, but they are traded like stocks on an exchange. Real estate ETFs provide investors with exposure to the real estate market while offering liquidity and diversification.
Rental Properties: While owning rental properties may require some level of active management, investors can hire property managers to handle day-to-day tasks such as finding tenants, collecting rent, and maintenance. Rental properties can provide investors with passive income through rental income and the potential for capital appreciation.
Passive real estate investing is often considered a way to diversify an investment portfolio and generate passive income, as real estate investments can provide regular cash flow through rental income or dividends. It is important to research and understand the risks associated with any real estate investment before investing. Consider consulting with a financial advisor to determine which type of passive real estate investment is best suited to your investment goals and risk tolerance.
Nov 9, 2022 | Investment Properties
If you are looking for a way to diversify your investment portfolio, there are different options available. One option is to invest in real estate. With so many different choices, how can you select the right one for your needs? There are a few key points to keep in mind.
A Single-Family Home
One of the first options you might be considering is a single-family home. This is a versatile option that you can use to host long-term renters or vacation visitors. Single-family homes come in many shapes and sizes, but the variation can also make it a bit of a challenge. You need to think about landscape maintenance, potential repairs, and real estate taxes. Single-family homes can also be expensive, so they might require more upfront cash to purchase.
A Duplex
Another option you might want to consider is a duplex. A duplex is a house that is essentially divided into two parts. This option provides a number of advantages. You could potentially live in one side of the house and rent out the other, possible covering your mortgage, if you are comfortable living near your renters. Furthermore, living close to the renters could make it easier for you to manage the property. Because you could live in one side of the house, this option could be more affordable.
A Condo
In addition, you might be thinking about purchasing a condo as a rental property. A condo could be a nice option because you don’t have to worry about exterior maintenance. There is usually an HOA that is responsible for managing the landscape. The downside is that a condo typically comes with expensive HOA fees that could eat into your profits. Condos come in all shapes and sizes, so you should think carefully about whether this option is right for you.
Find The Right Investment Property For Your Needs
If you are thinking about purchasing a rental property, these are a few of the top options available. Each choice has its benefits and drawbacks, and you need to think carefully about which one is right for your style. If you have questions about investment properties, you should reach out to an expert who can help you.
May 24, 2022 | Investment Properties
If you want to diversify your investments, you might be thinking about purchasing real estate. Buying property is expensive, so where are you going to get the money from? You might be able to use your IRA to help you buy property. You probably hold stocks, mutual funds, and bonds in your IRA, but did you know that you could also hold non-traditional retirement assets in your IRA? This includes real estate. How can you use your IRA to buy real estate?
Have The Right IRA
First, you need to have the right Ira if you want to use it to purchase real estate. If you have your IRA with a brokerage firm, you will not be able to buy investment properties through your account. You need a self-directed IRA to purchase real estate. As the name suggests, you will direct the investments held in the account.
Your Self-Directed IRA Can Be A Traditional Or A Roth IRA
A self-directed IRA can be either a traditional IRA or a Roth IRA. If you are curious about which one is better for you, you should talk to a retirement professional. If you are self-employed, you can also set up a self-directed SEP-IRA, which may have higher contribution limits. This could make it easier for you to purchase property.
The Rules For Purchasing Real Estate Through Your IRA
There are several rules you need to follow if you want to use your IRA to purchase an investment property. First, the real estate in your IRA has to be owned purely for investment purposes. This means you cannot stay there on vacation when it is not occupied by a renter. Also, you cannot use the furniture you own in an IRA on a rental property, and all of the property expenses have to be paid by the IRA, not yourself. You also cannot use your self-directed IRA to purchase property from yourself or a family member.
Explore Real Estate Investment Opportunities
These are just a few of the most important points you should keep in mind regarding real estate investing through an IRA. This could be a way for you to diversify your investments, but make sure you are familiar with the rules.
Apr 13, 2021 | Investment Properties
Upgrading your rental doesn’t need to cut deeply into your profits. You can add curb appeal and help prospective tenants see your rental as their next home by making some simple changes. The following upgrades are all things that a handy landlord can do without needing to hire professional contractors.
1. Decorative Switch Plates
Replace ugly cream switch plates with either stainless steel models or decorative designs. Fancy switch plates for light switches and electrical sockets cost very little, yet make any room look nicer. The best part is, you can do the replacements yourself, using only a screwdriver.
2. Flower Beds
Beautiful flower beds make any rental look more inviting. You can enhance curb appeal by planting inexpensive perennials around the front of the rental and along the pathway leading up to the door. Top off your newly planted flower beds with a fresh layer of colored mulch.
3. Kitchen Cabinet Refacing
Kitchen cabinets are pricey, but it’s cheap to just reface existing cabinets. You can either replace the entire doors or take them off and give them a fresh sanding and a couple of coats of varnish or paint.
4. Fresh Paint
Even quality paint is inexpensive. Give your rental a beautiful new look with fresh paint throughout. You’ll want to use neutral tones, but consider making an accent wall, painted with an attractive color.
5. New Light Fixtures
Old light fixtures make a place look dated. You can pick up inexpensive light fixtures at big box home improvement stores. This simple upgrade will make your rental more attractive and modern.
6. Broom Storage Area
Most rentals don’t come with a broom closet, but you can create a makeshift broom storage area very cheaply. Just pick up some plastic broom holders and a shelf from the hardware store. Attach the broom holders to the wall and hang the shelf over that. Your tenants will appreciate the upgrade!
7. Fresh Window Treatments
Window treatments make a house look like a home. Replace window blinds or shades for an instant upgrade. Curtains are even cheaper and can be laundered and reused between rentals.
No matter where your rental is located, you can make it more attractive with these easy and inexpensive upgrades that you can do yourself.
