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Bill H.245: Chapter 93 of the General Laws Amended

Bill H.245: Chapter 93 of the General Laws Amended

Bill H.245: Chapter 93 of the General Laws (Amended)

An Act protecting consumer rights in purchasing safe and habitable homes

PDF: HOUSE No. 245 Filed

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.

KEY POINTS

Purpose:

The bill aims to ensure that buyers have the right to home inspections when purchasing residential properties, including houses and condominiums.

Inspection Definition:

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.

Buyer’s Rights:

  • 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.

Offer to Purchase:

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.

Seller’s Obligations:

  • 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.

Enforcement:

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.

Implications:

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.

Offer Conditions:

  • 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.

Consumer Protection:

  • 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.

Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire

From Our Clients

“I would highly recommend David as a closing attorney. I have known David and have been using his office for many years. David’s professionalism when dealing with me, my closing department and most especially my clients has been always exemplary.”
DAVID BREMER

SENIOR LOAN OFFICER, SHAMROCK FINANCIAL SERVICES

“The Law Office of Attorney David R. Rocheford, Jr. is by far the most exceptional real estate law office that I have had the pleasure of working with. The professionalism is by far second to none.”
JACQUI KEOGH

SENIOR LOAN OFFICER, SALEM FIVE MORTGAGE SERVICES

“Attorney David Rocheford has provided settlement and title services for me and Greenpark Mortgage several years. He has assisted all of my clients, including my family and friends with mortgage closings. Always providing excellent service. Reliable and trustworthy!”
SANDRA MALDONADO

Recent News

Bill H.245: Chapter 93 of the General Laws Amended

Bill H.245: Chapter 93 of the General Laws Amended

An Act protecting consumer rights in purchasing safe and habitable homesBelow 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...

5 Common Myths About Home Closings Debunked

5 Common Myths About Home Closings Debunked

Purchasing a home is an exciting milestone, but when it comes to the closing process, many first-time buyers can feel overwhelmed.A lot of confusion arises from myths and misconceptions about what happens during closing. Don’t worry—today, we’re clearing up five of...

How Climate Risks Are Reshaping the Housing Market

How Climate Risks Are Reshaping the Housing Market

As climate change intensifies, homebuyers and sellers are paying closer attention to how environmental risks affect property values. Natural disasters such as floods, wildfires, hurricanes, and rising temperatures are impacting decisions in the real estate market....

Let’s Work Together

How Climate Risks Are Reshaping the Housing Market

How Climate Risks Are Reshaping the Housing Market

How Climate Risks Are Reshaping the Housing Market

As climate change intensifies, homebuyers and sellers are paying closer attention to how environmental risks affect property values.
Natural disasters such as floods, wildfires, hurricanes, and rising temperatures are impacting decisions in the real estate market. Here’s how:
female homeowner sitting on curb with a background of a home site after a natural disaster

Homebuyer Behavior

Many buyers now consider flood-risk data before making offers. Research shows that buyers viewing high-risk homes are increasingly shifting their focus to safer properties, with some even abandoning purchases due to flood-risk concerns.

picture of a new england home

Insurance and Costs

Rising disaster frequency has led to increased home insurance premiums, particularly for flood and wildfire protection. This added expense can influence home affordability and appeal.

man and woman homeowners standing with back toward camera, looking on a home site after a natural disaster

Adaptation Investments

Homeowners are investing in climate-resilient upgrades, such as fireproofing, flood barriers, and durable roofing, to protect property value and safety.

picture of a new england home

Regional Variations

Coastal and disaster-prone areas like Florida and California are seeing the most significant impact. Meanwhile, regions with fewer natural disasters, like the Midwest, remain less affected.

Governments and policymakers are encouraged to use climate data for better zoning and disaster mitigation strategies. These measures could help safeguard at-risk communities while maintaining the stability of the housing market.

Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire

From Our Clients

“I would highly recommend David as a closing attorney. I have known David and have been using his office for many years. David’s professionalism when dealing with me, my closing department and most especially my clients has been always exemplary.”
DAVID BREMER

SENIOR LOAN OFFICER, SHAMROCK FINANCIAL SERVICES

“The Law Office of Attorney David R. Rocheford, Jr. is by far the most exceptional real estate law office that I have had the pleasure of working with. The professionalism is by far second to none.”
JACQUI KEOGH

SENIOR LOAN OFFICER, SALEM FIVE MORTGAGE SERVICES

“Attorney David Rocheford has provided settlement and title services for me and Greenpark Mortgage several years. He has assisted all of my clients, including my family and friends with mortgage closings. Always providing excellent service. Reliable and trustworthy!”
SANDRA MALDONADO

Recent News

Bill H.245: Chapter 93 of the General Laws Amended

Bill H.245: Chapter 93 of the General Laws Amended

An Act protecting consumer rights in purchasing safe and habitable homesBelow 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...

5 Common Myths About Home Closings Debunked

5 Common Myths About Home Closings Debunked

Purchasing a home is an exciting milestone, but when it comes to the closing process, many first-time buyers can feel overwhelmed.A lot of confusion arises from myths and misconceptions about what happens during closing. Don’t worry—today, we’re clearing up five of...

How Climate Risks Are Reshaping the Housing Market

How Climate Risks Are Reshaping the Housing Market

As climate change intensifies, homebuyers and sellers are paying closer attention to how environmental risks affect property values. Natural disasters such as floods, wildfires, hurricanes, and rising temperatures are impacting decisions in the real estate market....

Let’s Work Together

Your Right to Choose a Closing Attorney in Massachusetts & New Hampshire

Your Right to Choose a Closing Attorney in Massachusetts & New Hampshire

Your Right to Choose a Closing Attorney in Massachusetts & New Hampshire

Download The Printable PDF

Buying a home is one of the most exciting and important decisions you’ll ever make. It’s a significant milestone, but also a complex process with a lot of moving parts. Whether you’re a first-time homebuyer or a seasoned homeowner, it’s crucial that you feel confident every step of the way—and that includes your closing.

When you’re nearing the end of the home-buying process, one aspect that’s often overlooked is the role of your closing attorney. Here’s the good news: In Massachusetts and New Hampshire, you have the right to choose your own closing attorney. Yes, you have the power to select someone who will be there to guide you, protect your interests, and ensure a smooth closing.

Decree of Sale - Personal Representative - Probate and Title Insurance in Massachusetts

What Exactly Does a Closing Attorney Do?

A closing attorney plays a key role in making sure everything goes smoothly at the finish line. They handle a lot of important details to make sure your home purchase is legitimate, legally sound, and properly executed. Here’s a quick overview of their role:

  • Reviewing and explaining documents: They’ll go through the purchase agreement, mortgage documents, and other legal paperwork to make sure everything is in order.
  • Title review: They’ll ensure that the home you’re buying has a clear title, meaning there are no legal claims against the property.
  • Disbursement of funds: The attorney ensures that all the funds are distributed correctly at closing, including payments to the seller, real estate agents, and any other parties involved.
  • Notarizing documents: They will handle any necessary notarization of documents to make the closing official and legal.
  • Guiding you through the closing: They’ll be there to explain the process, answer your questions, and help you understand the terms of your agreement.

Why Should You Choose Your Own Attorney?

In many cases, lenders or real estate agents may suggest a particular attorney or title company to handle the closing. While it’s not uncommon for this to happen, it’s important to understand that you are not required to use their choice of attorney.

Why is this so important? Because when it comes to the closing of your home purchase, you want someone who has your best interests in mind—not the interests of a lender or seller. Your closing attorney’s role is to protect you throughout the entire process, and that includes making sure the paperwork is accurate, the title is clear, and that no last-minute issues arise.

If you feel more comfortable with someone else, or if you have a trusted attorney you’ve worked with before, it’s your right to bring them into the process.

Young couple showing keys in a city background setting. The image implies the young couple has just received keys to their first home purchase.
Two professionals at a table with paperwork, in a fun discussion.

How to Find a Closing Attorney

If you’re wondering how to find a qualified closing attorney, don’t worry—you’ve got options. Start by asking your real estate agent for recommendations. Many agents work closely with experienced attorneys and can point you in the right direction. Alternatively, your local bar association often offers a lawyer referral service, which can help you find a reputable attorney in your area who specializes in real estate law.

It’s also a good idea to interview a few attorneys before making your decision. You’ll want to ask about their experience with real estate transactions, their approach to the closing process, and what their fees are. It’s important that you feel comfortable and confident in your choice.

Why You Should Care About Your Closing Attorney

Ultimately, the closing attorney is there to safeguard your interests. You’ve likely spent months—or even longer—searching for the perfect home, securing financing, and navigating the complexities of the real estate market. The last thing you want is to rush through the closing process without fully understanding the terms of your deal.

By selecting your own attorney, you can rest easy knowing that you’ve got someone on your side, advocating for your best interests, and ensuring everything is done right.

Don’t Let Anyone Rush You

It’s easy to get caught up in the excitement and feel pressure from various parties involved in the transaction. But remember: the closing is your moment, and you deserve to feel confident about every decision, including who represents you.

Take a moment to select an attorney who will guide you through the process with transparency, integrity, and expertise. After all, buying a home is a big investment—and you deserve to have peace of mind that everything is being handled professionally.

Take Control of Your Home Purchase!

As you move toward closing on your new home, remember that you have the right to choose your own closing attorney in Massachusetts and New Hampshire. This is an important part of the process, and it’s essential that you feel fully supported and protected. If you’re unsure where to start, reach out to your real estate agent or local bar association for recommendations. The right closing attorney can make all the difference in ensuring your home-buying experience is a smooth and successful one.

Want to learn more about the home-buying process or need recommendations for trusted closing attorneys? Reach out today—we’re here to help you every step of the way!

Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire

From Our Clients

“I would highly recommend David as a closing attorney. I have known David and have been using his office for many years. David’s professionalism when dealing with me, my closing department and most especially my clients has been always exemplary.”

DAVID BREMER

SENIOR LOAN OFFICER, SHAMROCK FINANCIAL SERVICES

“The Law Office of Attorney David R. Rocheford, Jr. is by far the most exceptional real estate law office that I have had the pleasure of working with. The professionalism is by far second to none.”

JACQUI KEOGH

SENIOR LOAN OFFICER, SALEM FIVE MORTGAGE SERVICES

“Attorney David Rocheford has provided settlement and title services for me and Greenpark Mortgage several years. He has assisted all of my clients, including my family and friends with mortgage closings. Always providing excellent service. Reliable and trustworthy!”

SANDRA MALDONADO

Recent News

Bill H.245: Chapter 93 of the General Laws Amended

Bill H.245: Chapter 93 of the General Laws Amended

An Act protecting consumer rights in purchasing safe and habitable homesBelow 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...

5 Common Myths About Home Closings Debunked

5 Common Myths About Home Closings Debunked

Purchasing a home is an exciting milestone, but when it comes to the closing process, many first-time buyers can feel overwhelmed.A lot of confusion arises from myths and misconceptions about what happens during closing. Don’t worry—today, we’re clearing up five of...

How Climate Risks Are Reshaping the Housing Market

How Climate Risks Are Reshaping the Housing Market

As climate change intensifies, homebuyers and sellers are paying closer attention to how environmental risks affect property values. Natural disasters such as floods, wildfires, hurricanes, and rising temperatures are impacting decisions in the real estate market....

Let’s Work Together

Massachusetts Homestead Act

Massachusetts Homestead Act

Massachusetts Homestead Act

The Massachusetts Homestead Act provides valuable protections for homeowners against certain claims from creditors. With the passage of the “Affordable Homes Act” on August 6, 2024, these protections were significantly enhanced, doubling the declared homestead exemptions. Below, we explore key aspects of the Homestead Act and answer common questions about what it does and does not protect.

picture of a new england home

What is the Homestead Act and How Does It Protect You from Creditors in Massachusetts?

The Massachusetts Homestead Act (MGL c. 188) is designed to protect the equity in your primary residence from being claimed by unsecured creditors. With the recent changes under the “Affordable Homes Act,” homeowners who have filed a *declared homestead* can now shield up to $1,000,000 of home equity from creditors. For elderly (age 62 or older) and disabled homeowners, the protection is even greater: eligible homeowners can “stack” their exemptions, safeguarding up to $2,000,000 in equity.

This protection applies to unsecured debts, meaning that creditors cannot force the sale of your home to recover these types of debts if you have filed a homestead declaration. However, it is essential to understand what this act does not cover.

What is the Elderly Homestead Exemption in Massachusetts?

The *elderly homestead exemption* allows homeowners who are age 62 or older to further protect the equity in their principal residence. By filing a homestead declaration and meeting the age requirement, elderly homeowners can “stack” their exemptions with other qualifying residents, effectively doubling the equity protection to $2,000,000. This provision also applies to disabled homeowners who meet specific disability criteria.

This expanded exemption offers significant peace of mind, ensuring that a substantial amount of home equity remains secure in the event of financial difficulties.

male farmer in a tracker cab, turned sideways looking back at the camera
moving boxes in a livingroom with a step ladder and empty bookshelf.

What is Not Protected by a Declared Homestead?

While the Massachusetts Homestead Act provides robust protections, it does not shield against all claims. The following types of debts and obligations are *not* covered by a declared homestead:

  1. Secured Debts: Mortgages, home equity loans, and property tax liens. If you default on your mortgage or property taxes, the lender or the government can still foreclose on your property.
  2. Spousal or Child Support Obligations: Court-ordered payments related to divorce or family support are not protected under the homestead declaration.
  3. Liens for Work Done on the Property: Mechanic’s or contractor’s liens resulting from work or improvements on the home are not exempt.
  4. Certain State or Federal Liens: Examples include IRS tax liens or state tax obligations that override the homestead protection.

Can a Lien Be Placed on a Homestead Property in Massachusetts?

Yes, a lien can be placed on a homestead property in certain situations. For instance, if you owe money for unpaid taxes, a creditor like the IRS or the Massachusetts Department of Revenue can place a lien on your home, even if you have filed a homestead declaration. Similarly, if a creditor wins a lawsuit against you and secures a judgment lien, they can place it on your property. However, the Homestead Act ensures that your home cannot be forcibly sold to satisfy *unsecured* judgment debts up to the protected amount.

It is important to seek legal guidance if you are concerned about potential liens or creditor claims affecting your homestead protection.

Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire

From Our Clients

“I would highly recommend David as a closing attorney. I have known David and have been using his office for many years. David’s professionalism when dealing with me, my closing department and most especially my clients has been always exemplary.”

DAVID BREMER

SENIOR LOAN OFFICER, SHAMROCK FINANCIAL SERVICES

“The Law Office of Attorney David R. Rocheford, Jr. is by far the most exceptional real estate law office that I have had the pleasure of working with. The professionalism is by far second to none.”

JACQUI KEOGH

SENIOR LOAN OFFICER, SALEM FIVE MORTGAGE SERVICES

“Attorney David Rocheford has provided settlement and title services for me and Greenpark Mortgage several years. He has assisted all of my clients, including my family and friends with mortgage closings. Always providing excellent service. Reliable and trustworthy!”

SANDRA MALDONADO

Recent News

Bill H.245: Chapter 93 of the General Laws Amended

Bill H.245: Chapter 93 of the General Laws Amended

An Act protecting consumer rights in purchasing safe and habitable homesBelow 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...

5 Common Myths About Home Closings Debunked

5 Common Myths About Home Closings Debunked

Purchasing a home is an exciting milestone, but when it comes to the closing process, many first-time buyers can feel overwhelmed.A lot of confusion arises from myths and misconceptions about what happens during closing. Don’t worry—today, we’re clearing up five of...

How Climate Risks Are Reshaping the Housing Market

How Climate Risks Are Reshaping the Housing Market

As climate change intensifies, homebuyers and sellers are paying closer attention to how environmental risks affect property values. Natural disasters such as floods, wildfires, hurricanes, and rising temperatures are impacting decisions in the real estate market....

Let’s Work Together

Massachusetts Registries of Deeds Owner Alert Service

Massachusetts Registries of Deeds Owner Alert Service

As a new homeowner in Massachusetts, safeguarding your property against fraud is paramount. The Massachusetts Registries of Deeds has your back with their innovative Owner Alert Service – a free, user-friendly tool designed to keep you informed and your property secure.

Your Property, Your Peace of Mind

Imagine waking up one day to find that someone has fraudulently recorded a document against your property. It’s a nightmare scenario that, unfortunately, can happen. But what if you could be instantly notified of any recording activity related to your property? That’s exactly what the Owner Alert Service offers.

What is the Owner Alert Service?

The Owner Alert Service is a free notification system available to property owners in Massachusetts. When you subscribe, you’ll receive an email alert whenever a document is recorded against your property in the Registry of Deeds. This real-time notification system serves as your first line of defense against potential property fraud.

Benefits That Speak Volumes

  1. Instant Notifications: Stay informed about any activity related to your property in real-time.
  2. Fraud Prevention: Quickly identify and address any suspicious or unauthorized recordings.
  3. Peace of Mind: Rest easy knowing you have an extra layer of protection for your valuable asset.
  4. Cost-Free: Enjoy this invaluable service at absolutely no cost to you.
  5. User-Friendly: Easy to set up and manage, even for those who aren’t tech-savvy.

How to Sign Up: Your Step-by-Step Guide

  1. Visit the https://cns.masslandrecords.com/WelcomeUser.aspx.
  2. Click on the “Create New Account” button.
  3. Complete the initial registration form.
  4. Check your email for your password and follow the instructions provided.
  5. Log in using your email address and password.
  6. Input up to two names (individual or business) and the corresponding city or town for monitoring.

That’s it! You’re now protected by the Owner Alert Service.

Real Estate Professionals:

For real estate professionals, the Owner Alert Service is more than just a tool – it’s a value-added service you can offer your clients. Imagine being able to tell your clients, “I’ve got your back even after the sale is complete.” It’s a powerful way to build trust and long-term relationships.

Protect Your Property

Don’t wait for a problem to occur. Take proactive steps to secure your property today!

Sign Up Now

Remember, in the world of real estate, knowledge is power. The Owner Alert Service empowers you with timely information about your property, allowing you to act swiftly if any unauthorized changes occur. It’s not just a service; it’s your property’s first line of defense.

By leveraging this free tool, you’re not just protecting your property – you’re securing your peace of mind. So why wait? Sign up for the Owner Alert Service today and take control of your property’s security!

 

Recent Study Highlights Growing Significance of Fraud and Forgery Claims

 

By Zachary Greenfield, Esq., Underwriting Counsel, Stewart Title Insurance Company

According to a recent study by consulting and actuarial group Milliman for the American Land Title Association, from 2013 to 2022, title insurance underwriters handled more than 200,000 claims and incurred approximately $4.4 billion dollars in claims losses and related expenses, 21% of which resulted from fraud and forgery claims. While the average claim cost for matters not involving fraud or forgery was $26,328, the average cost of each fraud or forgery claim was approximately $143,000.

The study grouped claims into 11 categories. The top four categories were as follows:

Category Description Percent of all claims
Basic Risk fraud, forgery, undisclosed heirs, marital rights, competency, etc. 24%
Special Risks mechanics’ liens, subordination of prior risks, underwritten risks, etc. 21%
Escrow and Closing Procedures improper instructions, improper payments, failure to make a payment, failure to complete post-closing duties, etc. 13.70%
Examination and Opinion irregularities irregular omissions, unforeseen risks, etc. 11.90%

The remaining categories included “apparent non-covered claims” (8%); “endorsement, title plan, search and abstract claims” (7.8%); “taxes and special assessment claims” (7%); “survey-inspection/description matters” (5.2%); “typing or policy review” (0.9%); “stakeholder and interpleader cases” (0.3%); and “disputed procedure” (0.2%), including matters such as foreclosures and government forfeitures.

Notably, the study found that in addition to being the most expensive type of claim, the frequency of fraud and forgery claims is on the rise. Whereas those claims represented 19% of all basic claims from 2013 to 2020, that figure rose to a staggering 44% in 2022. It is therefore now more important than ever to be on the lookout for potential title fraud. Your Stewart underwriters are always available to review any situations that you think might involve fraud or forgery. In this context, we urge you to follow the old adage, “if you see something, say something.”   To view the full study, follow this link:  Recent Study – Fraud & Forgery Link