This law establishes the right that buyers can now choose to conduct a home inspection once their offer is accepted.
Home buyers were compelled to waive their home inspection contingency in order to have an offer accepted or even considered. This practice placed unnecessary risk on the buyer’s safety and financial investment. Before this law passed, a pattern of unfair practices took hold that denied home buyers the basic due diligence of a home inspection that particularly impacted those looking for lower-priced homes.
Buyers will no longer indicate their preference for having or not having a home inspection in their offer or in any other communication. Sellers and their agents cannot pressure, encourage, or discuss waiving of or limiting a home inspection with the buyer or seller. Any offers with a waived or limited home inspection must be rejected. This helps foster a transparent and fair real estate market while improving access to homeownership to an increased pool of buyers.
The Governor office of Housing and Livable Communities is going to work on the actual regulations to implement the law.
The full law will not go into effect until those regulations are completed and approved, likely to be done by the year’s end
The executive office of housing and livable communities shall promulgate regulations to ensure that no seller of a residential structure or a residential condominium unit, or an agent thereof, shall:
(i) condition the acceptance of an offer to purchase on the prospective purchaser’s agreement to waive, limit, restrict or otherwise forego any prospective purchaser’s right to have the structure or unit inspected, except when the sale of the structure or unit is to occur at an auction conducted by an auctioneer licensed under chapter 100; or
(ii) accept an offer to purchase from a prospective purchaser, or an agent thereof who, in advance of the seller’s acceptance of an offer, informs the seller, either directly or indirectly, that the prospective purchaser intends to waive, in whole or in part, the prospective purchaser’s right to inspection; provided, however, that the seller may accept such an offer without violating this section if the prospective purchaser is:
(A) the spouse, sibling, child, parent, grandparent, grandchild, great-grandchild or great-grandparent of the seller; or
(B) the former spouse of the seller and the sale of the structure or unit is being made pursuant to a judgment or order under chapter 208;provided further, that other limited exceptions may be provided for by regulation.
Lots of people are talking about this, and the details will be ironed out in the near future. Expect to see lots of press, blog posts, and opinions. It is certainly an interesting time! Here are some additional thoughts from our colleagues.
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