How 760 CMR 74.00 Impacts Real Estate Agents and Sellers in Massachusetts

How 760 CMR 74.00 Impacts Real Estate Agents and Sellers in Massachusetts

Massachusetts is taking a bold step to protect homebuyers through the upcoming implementation of regulation 760 CMR 74.00, which prohibits the use of home inspection waivers in residential real estate transactions. While much of the focus has been on how this benefits buyers, it's equally important to understand what this regulation means for real estate agents and property sellers.

This post outlines the key changes, new responsibilities, and legal implications that agents and sellers must be aware of when 760 CMR 74.00 is finalized—expected as early as June 15, 2025.

Read the full regulation here


What 760 CMR 74.00 Prohibits

The core of 760 CMR 74.00 is a ban on conditioning or influencing a buyer’s decision to waive or limit a home inspection. Specifically, the regulation prohibits:

  • Sellers and their agents from conditioning the acceptance of an offer on a buyer’s waiver or limitation of the home inspection right.
  • Sellers and agents from selecting or favoring offers that imply, state, or suggest that the buyer will not perform a home inspection.

This means that any offer evaluation by a seller or seller’s agent that factors in whether or not a buyer is waiving their inspection is prohibited—a major shift from current practices and trends in competitive real estate markets.


Disclosure Requirements for Sellers and Agents

760 CMR 74.00 also introduces a mandatory disclosure that must be presented to the buyer at the time of signing the first written agreement, either an Offer to Purchase or a Purchase and Sale Agreement. This disclosure must also be signed by the seller on their acceptance of the offer. The disclosure must state:

  1. The buyer’s right to obtain a home inspection by a licensed home inspector.
  2. That the purchase agreement is not contingent upon the waiver of that right.
  3. The buyer has a defined period (typically 10 days) to complete the inspection and act on the findings.

Failing to provide this disclosure could expose agents and sellers to legal risk and invalidate parts of the transaction.


What Agents and Sellers Can No Longer Do

When  760 CMR 74.00 is adopted, the following practices will no longer be allowed:

  • Asking buyers to “sweeten” offers by waiving the inspection.
  • Giving preference to offers with waived or limited inspection contingencies.
  • Discussing or hinting that waiving an inspection will improve the buyer’s chances.

For many agents, this will require updates to sales strategies, offer to purchase forms and documents,  offer comparison processes, and buyer/seller communication protocols.


Exemptions to Be Aware Of

Not all transactions fall under the regulation. Exemptions include:

  • Sales between immediate family members
  • Foreclosure and short sale transactions
  • Court-ordered sales (e.g., divorce proceedings)
  • Auctions held by licensed auctioneers
  • Specific trust transfers

Agents involved in exempt transactions should still exercise caution and document everything clearly to avoid potential liability.


Legal Implications and Enforcement

Violations of 760 CMR 74.00 may be considered unfair or deceptive acts under M.G.L. c. 93A, the Massachusetts Consumer Protection Act. This opens the door for buyers to file claims if they feel pressured or misled during the offer process.

Real estate brokerages should immediately review internal policies, update standard contracts, and train agents on compliance. Sellers should consult their legal advisors to understand their rights and limitations under the new rule.

See the official public notice


Moving Forward with Compliance

760 CMR 74.00 is poised to change the real estate landscape in Massachusetts. For real estate agents and sellers, the regulation marks a significant shift in how offers are presented, evaluated, and accepted.

By ensuring that every buyer has equal access to a home inspection, Massachusetts is creating a more transparent, fair, and informed homebuying process. For professionals in the field, the key to success under this new rule is compliance, education, and clear communication.

Need help navigating home inspections under the new law? MKC Associates Home Inspection is here to provide trusted, licensed inspections that protect buyers and support a fully compliant real estate process.

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