Home Inspection Legislation Set for Review On Beacon Hill
The Massachusetts Senate and House legislatures are currently considering legislative bills that aim at protecting consumers in the home-buying process. House Bill 245 and Senate Bill 197 named “An Act Protecting Consumer Rights in Purchasing Safe & Habitable Homes” sit in the Joint Committee on Consumer Protection and Professional Licensure. Both bills are meant to protect home-buying consumers in their right to have a professional home inspection before signing a purchase and sale agreement.
Background on the Bill
Normally during the home buying process, buyers attend open houses and tour prospective homes. When they find a home that suits their needs and location, they put a bid in often with many other offers. When a bid is accepted, something called a Home Inspection Contingency allows buyers to hire a professional to inspect the property and structure for any serious defects.
During the pandemic years, the real estate market was white-hot with low inventory and homes were selling in less than a day. Sellers had the ultimate upper hand, and the practice of waiving a home inspection became a trend.
In fact, it has become a common practice for buyers to waive the inspection in order to make their offer more competitive than those who are buying on a home inspection contingency. But even worse, the market conditions have led sellers to expect that they should receive multiple offers and that the buyers will waive their inspection contingency.
This lack of a home inspection puts consumers at risk of buying a home that has defects that they are unaware of and have no idea how to repair or maintain.
Who Supports This Home Inspection Legislation?
Representative Brian Ashe and Senator Mike Moore are sponsors of the bill. When asked about the legislation the Office of State Senator Michael Moore asserts that “the legislation if passed, would remove the home inspection contingency clause from the Offer to Purchase form, making it so that the seller will be blind to whether the buyer wants an inspection. This removes the ability to use an inspection contingency as a point of leverage an offer form, protecting buyers.”
In addition to these congressmen supporting this bill, The American Society of Home Inspectors (ASHI NE) also supports this legislation. As a member of this organization, I, along with other ASHI NE members including Alex Steinberg, Mike Atwell, Jameson Malgeri, Lenni Lecari, and Jason Sobol, met with Representative Ashe over the summer to help craft and write this legislation.
It is our belief that home inspections are a public good that protects consumers. It is not only the last chance for a buyer to make an informed decision that is based on transparency and an impartial objective evaluation of the condition of their prospective home but also a good chance for an inspector to inform buyers of how to maintain their new home.
The Importance of This Legislation
This bill is all about consumer protection and ensuring fair and transparent transactions. This bill will ensure that home buyers are going to move into safe and habitable homes. A home inspection can identify serious defects that could place some buyers in financial ruin or make a home unlivable. Without that inspection, buyers are “flying blind” as to whether there is an issue within the home's major components.
Harm to the consumer comes when major issues are found after the home has been purchased and there is no legal recourse. The majority of buyers that have been most adversely affected by the practice of waiving a home inspection have been first-time home buyers and people purchasing a home between 350K to 1.5M.
With the passage of this bill, buyers will not be required to have a home inspection but will have the option to have a home inspection before finalizing the purchase. Once the offer is accepted, the buyer can state whether they want an inspection or not and agree on a timeframe with the seller.
How to Support This Bill
Please support the Act Protecting Consumer Rights in Purchasing Safe and Habitable Homes by contacting your elected officials and telling them your concerns about the trend of waiving home inspections. To find out more about this bill and where it stands currently click the bill tracker online and lend your support to this critical legislation.