Massachusetts Homebuyer's Manual: Your Complete Legal Protection Guide

Buying a home in Massachusetts involves navigating a complex legal framework designed to protect consumers while maintaining market efficiency. This manual covers the essential legal protections available to homebuyers, from consumer protection statutes to broker licensing regulations, mandatory disclosures, contract terms, closing procedures, and complaint remedies.

Understanding these legal frameworks is not just academic—it's practical protection for one of the largest financial transactions of your life. Whether you're a first-time buyer or experienced investor, knowing your rights and the duties of sellers and agents helps you make informed decisions, recognize violations, and pursue remedies when necessary.

Massachusetts General Laws Chapter 93A is the state's main consumer protection statute. It bans "unfair or deceptive" business practices in any trade or commerce. In a home sale, the buyer is a "consumer" and the seller/agent is a "supplier."

Thus, knowingly false statements or concealment of material facts by a realtor or seller can trigger a 93A claim. For example, hiding a serious defect or lying about property details could be considered deceptive.

Important: MA law requires the buyer to send a written demand for relief at least 30 days before suing. This demand letter must outline the unfair act, your loss, and what you want (repair, refund, etc.).

Note: Chapter 93A only applies when the seller/agent is engaged in trade or commerce. Purely private transactions, like a one-time family trust deal, may not qualify if no business is involved.

Licensed Massachusetts brokers and salespersons must follow the Board's regulations (254 CMR 3.00). Key duties include:

Agents must not lie or mislead. They may not use any advertisement or statement that is false or misleading.

This is a critical distinction: sellers can remain silent about defects (caveat emptor), but agents cannot. If an agent knows about a material defect and fails to disclose it, they can be held liable under Chapter 93A—even if the seller instructed them to remain silent.

At the first in-person meeting about a specific property, the agent must give the buyer (or seller) the official Massachusetts Agency Disclosure Form. This form explains whether the agent represents the seller, the buyer, or both. The agent must have the client sign and date it.

If the agent ever serves as a dual agent (representing both sides), written consent from both parties is required.

Any deposits or other money paid to the broker must be put into a designated escrow account promptly. The broker must keep clear records of all funds and may not use client money for personal purposes.

Salespersons must turn all deposits immediately over to their employing broker.

Brokers must comply with all applicable laws (including fair housing). They cannot engage unlicensed helpers (paying commissions to someone without a license) and must obey all licensing rules. Any known conflicts of interest must be disclosed in writing.

For example, a broker may not secretly act for more than one side without full, informed consent.

Massachusetts law only mandates specific disclosures. Sellers and agents must follow these rules:

Federal and state law require that the seller provide the buyer with a Lead Paint Notification form before signing the P&S. This form explains lead paint hazards and the buyer's right to inspect. (It must be signed by seller, buyer, and agent.)

The buyer then has 10 days to conduct a lead inspection and can cancel if hazards are found. Failing to give this notice or certify compliance can lead to liability under Chapter 93A.

If the property has a private septic system or cesspool, Massachusetts Title V law requires a certified inspection at sale. The seller (or seller's agent) must hire a Title V inspector. A passing report is generally required for closing.

The buyer receives a copy of the report. If the system fails state standards, the seller must repair or replace it (or escrow money for repairs) before closing. Transfers between close family members are exempt.

Sellers are required to disclose the type and condition of any waste disposal system on the property (see septic above). Otherwise, there is no broad disclosure form in Massachusetts.

For example, sellers do not have to point out a leaky roof or past floods unless specifically asked. MA still follows caveat emptor (buyer beware). If a buyer asks about a condition, the seller must answer truthfully; lying in response can lead to liability.

Beyond lead and septic, there is no legal requirement for a seller to volunteer problems. (That's why buyers always get an inspection.) However, agents must disclose any material fact they know about.

Sellers must not willfully misrepresent if directly questioned. In short, a seller can keep quiet about defects unless a buyer or agent specifically asks. But buyer protections still exist under 93A if fraudulent concealment is proven.

By state law, the seller must also provide a working smoke/carbon monoxide detector certificate at closing. The local fire department issues a sticker or certificate (showing detectors are operational) that becomes part of the closing paperwork.

The Purchase & Sale Agreement is the binding contract that governs the home purchase. It spells out who is buying/selling, which property, how much, and when. For a buyer, key parts include:

Ensure names are spelled correctly (title will be issued exactly as written). Check the breakdown of payment: initial deposit (usually held in escrow), additional deposit at signing, and final balance at closing.

Verify that the address and parcel details are accurate, and that the sale includes all agreed items (e.g. appliances, fixtures). Excluded items (if any) should be clearly listed.

The P&S sets a closing date. This is when you must finalize financing and lawyer's title exam. The exact time and place of closing are usually arranged closer to that date.

Crucially, P&S typically includes an inspection clause. A common practice is to require a home inspection within a short deadline after signing (e.g. 10–14 days). This allows the buyer to inspect the home.

If serious defects are found, the buyer can request repairs, credits, or back out by the contingency date. NEVER waive inspection without a high level of confidence in the home.

This is your "out" if you can't get a loan. The P&S will specify dates by which you must apply for a mortgage and obtain a loan commitment. If by that date you cannot secure financing, you can cancel and get your deposit back.

Keep these deadlines in mind; ask for extensions if lender is delayed.

The contract requires the seller to deliver good title (free of liens) so you can buy. Your closing attorney will do a title search, and if defects (unpaid mortgages, liens, ownership disputes, etc.) appear, you can demand the seller clear them or cancel the deal.

P&S forms often spell out that if title is not perfected within the agreed time, the seller returns all deposits, or the buyer may choose to accept title as-is. A typical clause: if title defects are not fixed in time, the buyer is entitled to a full refund of deposit.

The seller must prepare the deed and any affidavits (e.g. certificate of title, smoke cert) for signing at closing. The buyer's lender will require copies of documents and usually issues a commitment letter beforehand.

The P&S states the property should be delivered at closing in substantially the same condition as at signing (ordinary wear and tear excepted). If, say, a fire or casualty occurs before closing, there will be clauses addressing insurance proceeds or contract termination (often giving the seller a short time to rebuild).

If the buyer walks away without a valid contingency after signing, the seller typically keeps the earnest money deposit as liquidated damages. This means the deposit is agreed-upon "penalty" for breach.

Conversely, if the seller breaches (e.g. sells to someone else), the buyer can sue for specific performance or damages. A professional closing attorney will review these clauses carefully.

In Massachusetts, a real estate closing is usually handled by attorneys (often one attorney represents the lender or one party, or each side has their own lawyer). The essential goal is to transfer title free of encumbrances. Key points:

The closing attorney conducts a thorough title search, typically reviewing deed records going back 40–50 years. This uncovers any mortgages, liens (tax, mortgage, mechanic's liens, etc.), easements, or ownership issues.

If any defects appear, they must be resolved: existing mortgages are paid off from the sale proceeds, liens are satisfied, or the parties negotiate a cure. Mass. law requires this 50-year search unless something indicates otherwise.

It's usually the seller's responsibility (with their payoff proceeds) to eliminate encumbrances. For example, the seller's lender will provide a mortgage payoff letter, and the attorney ensures it's paid at closing.

Once cleared, the seller signs a deed conveying ownership to the buyer. The deed is then recorded in the county Registry of Deeds.

Massachusetts does not legally require a homeowner to buy title insurance (unlike some states). However, if you are taking out a mortgage, the lender will require a lender's title policy (protecting the bank).

As a buyer, you can choose to purchase an owner's title insurance policy to protect your equity. Many advisers say it's prudent: if a hidden defect later surfaces (e.g. an old forged document, undisclosed heir, survey error), title insurance will cover your losses.

The cost is a one-time premium at closing and typically covers the full purchase price.

At closing, you (buyer) will sign the mortgage, note, and lender's affidavits; and the seller will sign the deed and affidavits (e.g. smoke detector certificate, corporation or estate affidavits if applicable).

Funds flow through escrow: your lender wires loan funds and you provide any down payment; the attorney pays off existing loans and liens; any remaining balance goes to the seller, and your title policy premium is paid. Finally, you receive the keys and a copy of the deed.

The buyer usually pays for the owner's title policy (if purchased), lender fees, and recording fees. The seller typically pays off mortgages and the broker's commission. Both parties often share some prorations (e.g. property taxes and utilities up to the closing date).

After closing, you should receive copies of all signed documents and the recorded deed. With a properly executed deed and title insurance, you'll have clear title to your new home.

Sometimes real estate laws or ethics are broken. Common violations by sellers or agents include:

Providing false information about the property (e.g. lying about square footage, renovations, or legal status) is illegal. If a seller or agent knowingly conceals or fabricates material facts, that can be a Chapter 93A violation or grounds for contract rescission.

Acting as a dual agent without notifying both parties and getting consent is prohibited. Also, undisclosed kickbacks or undisclosed commissions violate M.G.L. c.112§87QQ.

For example, an agent secretly receiving money from a contractor referred to the buyer (the infamous "kickback" scheme) is illegal.

Mishandling deposit funds – such as not depositing earnest money on time, commingling client funds with personal funds, or refusing to return a deposit when required – violates both state law and the license regulations. Brokers/salespersons must account for all client money.

In certain cases, failing to give a copy of the signed Purchase & Sale to both buyer and seller is actually against the law. Also, refusing to honor an agreed contingency (without legal basis) can constitute breach. If a contract is broken, the non-breaching party may have legal remedies.

Directly or indirectly steering buyers away from homes in certain neighborhoods, or otherwise discriminating by race, religion, disability, etc., is strictly prohibited by Fair Housing laws. Chapter 112, §87AAA even requires license suspension for violations of fair housing regulations.

Massachusetts law forbids "net listings," where the seller sets a net price and lets the agent keep any excess as commission. Accepting such an agreement is illegal.

Always document everything. Keep copies of all agreements, disclosures, emails, inspection reports, and receipts. Take photos of any problems you discover. If a seller or agent says something important, follow up in writing (text or email) so there's a record.

If you suspect misconduct, act promptly. First, request written answers or receipts for any damages. Then consider formal complaints.

If you've been wronged in a home purchase, Massachusetts offers several paths to seek redress:

File a written complaint with the Massachusetts Board of Registration of Real Estate Brokers and Salespersons (online forms are on Mass.gov). By law the Board "shall" investigate any verified complaint about a broker's conduct.

If they find violations (see above), the license can be suspended or revoked. While the Board cannot award you damages, it can punish unethical agents and put warnings on record.

If the transaction involved REALTORS®, local boards (like GBREB or MAR) offer dispute resolution. Often, mandatory mediation is required before any arbitration hearing.

Mediation is an informal meeting where a neutral REALTOR® helps both sides settle. Many cases settle in mediation with little cost. If that fails, a binding arbitration panel of REALTORS® can decide certain commission disputes.

Note: under this system, you cannot recover money damages beyond what the Code of Ethics covers, but it can resolve commission splits and the like.

For fraud, deception, or unfair practices by the seller or agent, consider a Chapter 93A lawsuit. First, you must send a written 93A demand letter at least 30 days before filing suit.

In that letter, outline the unfair act, your loss, and what you want (repair, refund, etc.). If the other side rejects or ignores the demand, you can sue in court.

If you win, a 93A claim allows you to recover your actual damages and up to two or three times those damages, plus attorneys' fees. This powerful remedy is intended to deter misconduct.

Chapter 93A claims can be filed in Superior Court (for large cases) or District Court (for smaller ones).

For modest losses (typically under $7,000 in Small Claims or under $50,000 in District Court), you could sue on the contract (e.g. refund of deposit) or tort claims (fraud). Small Claims court is simpler and user-friendly, though you generally cannot recover attorneys' fees there.

The MA Attorney General's Consumer Protection Division will sometimes take on Chapter 93A or fraud cases, especially if there are many victims. Contact them with your evidence. Local District Attorneys also have a consumer affairs unit in some counties.

If the issue involves discrimination, file with the Massachusetts Commission Against Discrimination (MCAD) or HUD. If it involves a home inspector's negligence, complain to the Board of Home Inspectors. If a mortgage lender misled you, contact the CFPB or State Banking Department.

Keep in mind that suing (including 93A) has statutes of limitation: a 93A claim generally must be filed within 4 years of the violation, and Board complaints are best filed promptly after the event. Consulting a real estate attorney early can help map the best strategy.

Understanding Massachusetts real estate law protects your investment throughout the homebuying process. From Chapter 93A consumer protection to broker duties, mandatory disclosures, Purchase & Sale Agreement contingencies, closing procedures, and complaint remedies, these legal frameworks exist to ensure fair transactions.

Document all communications, understand your contingencies, and know where to turn if violations occur. This knowledge empowers you to make informed decisions and pursue remedies when necessary.

Sources: This guide draws on Massachusetts statutes and regulations (M.G.L. Chapter 93A; 254 CMR 3.00) and official summaries by the state and legal professionals. It is intended as general information for homebuyers. (It is not legal advice.)