760 CMR 74.00: What Massachusetts Homebuyers Need to Know About Home Inspection Rights

When purchasing a home in Massachusetts, buyers face a wide range of decisions—financial, logistical, and legal. One of the most critical elements in this process is the home inspection, which provides an objective assessment of the property's condition. As of 2024, a new state law, has been introduced to protect homebuyers from being pressured or incentivized to waive this essential step. New regulations, 760 CMR 74.00, describe how this law is put into practice.

This regulation is designed to create a fairer, safer housing market by ensuring that buyers retain the right to full access to home inspections as part of the purchasing process. Below, we explore what 760 CMR 74.00 means, why it was enacted, and how it affects buyers, sellers, and real estate professionals in Massachusetts.

What Is 760 CMR 74.00?

760 CMR 74.00 was established by the Massachusetts Executive Office of Housing and Livable Communities (EOHLC) under authority granted in Chapter 150 of the Affordable Homes Act of 2024. It addresses a growing concern in the real estate market: buyers pushed out by competition (risk tolerant, well-heeled buyers, developers, private equity), and relegated to forgoing their due diligence by waiving their right to a home inspection in order to make their offer more competitive. It was designed to restore this right to due diligence,  that any buyer should have, if they choose.

Specifically, this regulation prohibits sellers—or their agents—from requiring, encouraging, or accepting offers that are contingent on the buyer waiving, limiting, or restricting their right to a home inspection. This applies broadly to all types of residential property sales, with certain limited exceptions.

The regulation also ensures that prospective buyers and sellers of homes are properly informed, through a written disclosure, that the buyer retains the right to conduct a home inspection by a licensed inspector of their choosing.

Key Protections Under the Regulation

Buyers are now explicitly protected under 760 CMR 74.00 from several common practices in competitive markets. The regulation establishes that:

1. Sellers cannot make acceptance of an offer contingent upon inspection waivers.
   Sellers or their agents may not demand that a buyer waive a home inspection in order to have their offer accepted.
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2. Sellers cannot accept offers that preemptively include an inspection waiver.
   Even if a buyer voluntarily includes a waiver in their offer, the seller is not allowed to accept it under most circumstances.
   
   
3. A mandatory disclosure is required.
   The buyer (or their agent) must provide a clear, written disclosure at the time of the first contract—whether it is the offer or the purchase and sale agreement. This disclosure must acknowledge the buyer’s inspection rights, and must be signed by both the buyer and seller.
   
   
4. Buyers must be granted a reasonable inspection window.
   Buyers must be given adequate time, agreed upon by both parties, to conduct an inspection and make a decision based on the results.
   
   
5. Contract terms cannot “render the inspection meaningless.”
   Language or conditions that restrict access to the property, penalize buyers for canceling due to inspection results, or otherwise undermine the purpose of the inspection are prohibited.
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6. Buyers may still voluntarily opt not to have the inspection later.
   After receiving the disclosure and signing a valid contract, buyers can choose not to have the inspection at all, or have it on their own terms—as long as that choice was not required or induced by the seller.

Exemptions and Exceptions

While the regulation is broad in its coverage, it does include specific exemptions where inspection waivers may be permitted. These include:

• Auction Sales: When a property is sold via a licensed auctioneer under Massachusetts law.
• Family Transactions: If the buyer is a relative of the seller or a former spouse as part of a court-ordered sale.
• Pre-Regulation Contracts: If a signed offer or purchase agreement was executed before October 15, 2025.
• Foreclosures and Deeds-in-Lieu: Properties transferred due to foreclosure or similar financial transactions.
• Estate Planning Transfers: Transfers to family members through trusts or estate-related planning.‍
• New Construction (Pre-Completion): Sales of newly built homes where the buyer signs before the home is substantially complete—provided the seller offers a one-year written warranty covering all key structural and system components.

Legal and Regulatory Consequences for Sellers and Agents

Violations of 760 CMR 74.00 are not taken lightly. If a real estate broker or agent fails to comply, they may face disciplinary action from the state licensing board. In addition, any such violation may be considered an unfair or deceptive business practice under the Massachusetts Consumer Protection Act (M.G.L. c. 93A).

This means affected buyers may pursue legal remedies and could be awarded damages if it is shown that the violation led to harm or concealed a material defect in the property.

Importantly, private homeowners involved in the isolated sale of a personal residence and not acting in a business context are typically not subject to these penalties. However, licensed real estate professionals and agents must fully comply.

Why This Matters for Homebuyers

In a competitive housing market, it is not uncommon for buyers to feel pressure to waive inspections in order to “win” a bidding war. This regulation exists to push back against that pressure and ensure that buyers do not compromise their safety or financial well-being.

A professional home inspection can uncover costly issues—such as foundation problems, aging HVAC systems, faulty wiring, or roof damage—that might not be visible during a walkthrough. Having the opportunity to identify these issues before closing can save buyers thousands of dollars and prevent years of stress.

Now, with 760 CMR 74.00 in place, Massachusetts law supports your right to make an informed purchase—and puts legal guardrails in place to ensure that right is respected.

Know Your Rights

760 CMR 74.00 represents a significant step forward in consumer protection for homebuyers in Massachusetts. Whether you're a first-time buyer or a seasoned investor, you should understand that:

• You are entitled to a full, fair opportunity to conduct a home inspection.
• Sellers and agents cannot lawfully ask you to waive that right upfront.
• Your offer to purchase or purchase and sale contract will be required to include a disclosure that clearly identifies this right to the seller.
  

If you are planning to purchase a home, be sure to work with licensed professionals who are familiar with the latest laws and who respect your right to due diligence. Consult with them about this new regulation and how it will affect your purchase process. If you have questions about your inspection rights or encounter pressure to waive them, consult a real estate attorney or your buyer’s agent immediately. 

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