Can I get a refund on my deposit if I back out after the inspection?

One of the most important financial concerns for homebuyers in Massachusetts is whether they can recover their deposit if they decide not to proceed after a home inspection. The proposed regulation 760 CMR 74.00 helps clarify these rights and ensures buyers aren’t unfairly penalized for prioritizing due diligence.

When a Refund is Typically Allowed

Buyers can usually receive a deposit refund if:

• Significant issues were found during the inspection.
• The inspection contingency in your contract is broad enough to cover your decision to cancel.
• You act within the timeframe outlined in your offer.

When Refund Limitations Apply

However, your right to a Massachusetts inspection deposit refund may be limited if:

• Your offer includes a specific monetary threshold for repairs.
• The contract clearly defines what types of findings justify cancellation.
• You miss critical deadlines in your agreement.

For more information on your inspection and refund rights, visit the Massachusetts Board of Registration of Home Inspectors.

MKC Associates encourages clients to negotiate clear inspection contingencies and understand the implications for deposit refunds before making an offer. Contact us for guidance tailored to your transaction.

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