How Brokerages Should Prepare for 760 CMR 74.00

How Brokerages Should Prepare for 760 CMR 74.00

Massachusetts real estate is about to experience a major change. On October 15, 2025, the new regulation 760 CMR 74.00 will go into effect. This law prohibits buyers from waiving their right to a home inspection and requires a state issued disclosure form for nearly every residential transaction.

For brokers and brokerage owners, the regulation has serious implications. It affects compliance, training, client communication, and even how offers are drafted and presented. The broker of record carries ultimate responsibility for making sure that every agent in the office follows the law. Failing to prepare could expose the brokerage to liability, consumer complaints, and disciplinary action.

Here is a roadmap to get your brokerage ready.

1. Understand the Regulation in Detail

Before you can train your team, you need to be confident in your own knowledge. Read the regulation directly and stay informed about any clarifications issued by the Executive Office of Housing and Livable Communities. Pay close attention to:

  • The effective date: October 15, 2025.
  • The requirement for a signed inspection disclosure form before or at the first written contract.
  • The prohibition against conditioning offers on inspection waivers.
  • The limited exemptions, such as family transfers, foreclosures, and contracts signed before the deadline.

As the broker of record, your role is to be the resource your team turns to when they have questions.

2. Update Brokerage Forms and Templates

Your standard contracts and forms will need to be revised. Work with legal counsel to ensure the new state disclosure form is included in your document packages. Also review purchase agreements, offer templates, and any internal checklists to confirm that prohibited language has been removed.

Action item: Create updated form packets and distribute them to every agent before October 15. Outdated versions should be discarded to prevent confusion.

3. Train Every Agent Thoroughly

Agents will be on the front lines explaining this change to clients. They need to be able to answer questions confidently and avoid giving advice that could put the brokerage at risk. Training should cover:

  • What the law requires and prohibits.
  • How to explain the disclosure form to buyers and sellers.
  • Alternatives to waived inspections for making offers competitive.
  • The risks of non compliance, including Chapter 93A violations.

Consider hosting multiple training sessions and recording one for new agents who join later.

4. Create Talking Points for Client Communication

Your agents will need consistent messaging when speaking with clients. If one agent says “You cannot waive an inspection,” while another suggests that inspections are still negotiable, your brokerage could appear inconsistent and unprofessional.

Provide your team with written talking points for both buyers and sellers. For example:

  • For sellers: “Every buyer must retain the right to a home inspection. This applies to every transaction, so you are not at a disadvantage.”
  • For buyers: “This law protects your right to an inspection. You will still need to move quickly and complete it within the agreed timeframe.”

Unified communication will build trust and minimize misunderstandings.

5. Strengthen Compliance Oversight

Because brokers are ultimately responsible for compliance, you may want to implement additional oversight measures. This could include:

  • Reviewing all contracts before submission to ensure the disclosure form is included.
  • Conducting random audits of agent files to check compliance.
  • Setting up a system for agents to ask quick compliance questions.

A proactive approach will reduce the risk of complaints or penalties.

6. Advise Sellers on Pre-Listing Inspections

The new regulation may cause some sellers to worry that inspections will derail their transactions. Brokerages can prepare agents to recommend pre-listing inspections as a proactive strategy. This allows sellers to identify issues in advance and present a more transparent property profile to buyers.

Encouraging pre-listing inspections not only helps sellers but also positions your brokerage as forward thinking and client focused.

7. Communicate with Partner Professionals

Attorneys, lenders, and inspectors will all be affected by the new law. Brokerages should reach out to their preferred partners to align on best practices. For example, closing attorneys should know your brokerage’s policy for handling the new disclosure form, and inspectors should be ready for an increase in demand.

Strong professional relationships will make the transition smoother for your clients.

8. Market the Brokerage as a Resource

Regulatory changes create opportunities for brokerages to stand out. By publishing blog posts, hosting webinars, and sharing educational materials, you can position your brokerage as a trusted authority on 760 CMR 74.00. This demonstrates leadership in the industry and builds credibility with both clients and agents.

The Bottom Line for Brokerages

760 CMR 74.00 is more than just a regulatory detail. It represents a cultural shift in Massachusetts real estate. Brokerages must adapt by updating forms, training agents, strengthening compliance systems, and guiding clients through the transition.

The broker of record has a responsibility to lead the way. With preparation and proactive communication, your brokerage can not only stay compliant but also demonstrate its value as a trusted partner to both agents and clients.

October 15 will arrive quickly. The steps you take now will determine how smoothly your office adapts to the new era of transparency and buyer protection.


Helpful .gov Resources for 760 CMR 74.00

  • Mass.gov – 760 CMR 74.00: Residential Home Inspection Waivers: The official regulation page detailing the law’s provisions and linking to the downloadable PDF. Mass.gov
  • Mass.gov – Residential Home Inspections: Overview of the regulation’s purpose, scope, prohibited conduct, exemptions, disclosures, and enforcement. Mass.gov
  • Mass.gov – Healey-Driscoll Administration Implements New Policy Protecting Homebuyers’ Inspection Rights:  A press release summarizing the context of the law, the policy rationale, and its implications. Mass.gov
  • Mass.gov – EOHLC Regulations: Current & Proposed Amendments:  Tracks the rulemaking process, public notices, and regulatory updates related to 760 CMR 74.00. Mass.gov
  • Mass.gov – Home Inspectors Consumer Fact Sheets: Consumer-friendly fact sheets (available in multiple languages) that explain what to expect from a licensed home inspector. Mass.gov
  • Mass.gov – Residential Inspections (RE110R20 Fact Sheet): Agent-facing information outlining home inspection basics, agent responsibilities, and helpful guidance. Mass.gov

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