The recently passed Massachusetts Affordable Homes Act, signed by Governor Maura Healey, is set to impact the state’s competitive real estate landscape significantly by altering how home inspections are handled during property transactions. Effective from October 15, the new legislation mandates that real estate agents must allow potential buyers the opportunity for a home inspection prior to closing. However, buyers can still opt to waive the inspection, provided they are not unduly influenced by the seller or their agent.
This legislative change has sparked a backlash from the Greater Boston Real Estate Board, which raises concerns about the law’s vague liability provisions and the potential insufficiency of home inspectors to meet the expected demand. Critics argue that this law restricts effective negotiation strategies, particularly the common practice of waiving inspections to secure better deals.
Adrian Moore, a vice president of policy at the Reason Foundation, has vocalized strong opposition to the bill, labeling it as detrimental to both buyers and sellers by undermining their bargaining rights. He argues that eliminating the ability to negotiate home inspections could lead to increased costs for consumers and that the primary beneficiaries appear to be home inspectors themselves, who would see a rise in demand for their services.
Interestingly, support for the inspection mandate originated from concerns raised by home inspectors, who highlighted that buyers often felt pressured to forgo such inspections. State Senator Michael Moore (D-Worcester) noted that discussions around the law were influenced by fears about the liabilities associated with skipping inspections.
While the intention behind the law is to protect buyers from making hasty decisions, critics like Adrian Moore question whether such restrictions genuinely serve the interests of consumers. They argue that individuals should have the autonomy to make their own decisions, even if those choices might be flawed.
Overall, the Massachusetts Affordable Homes Act aims to provide greater transparency and protection in home-buying practices, setting a precedent that could encourage similar legislation in other competitive markets. Balancing consumer protection with the flexibility needed in negotiations remains a pivotal challenge in the evolving real estate industry.