Home sales in Massachusetts come with legal strings attached. Missteps with contract terms, title records, contingencies, or due diligence can put your transaction and your investment at risk.
Buying or selling a home in Massachusetts should be a significant milestone, not a legal minefield. Yet, many real estate transactions run into trouble because buyers and sellers overlook key legal risks. From unclear contract terms to title defects and missed deadlines, small mistakes can lead to big headaches—or even kill the deal altogether.
Massachusetts law adds another layer of complexity with its unique requirements, including the mandatory use of an attorney for closings. That makes it even more important to understand where things tend to go wrong and how to prevent problems before they start. This article walks through some of the most common legal pitfalls in Massachusetts home sales and offers practical advice to help ensure your transaction goes smoothly.
Common Contract Issues
The purchase and sale agreement is the backbone of any real estate transaction. But too often, it’s drafted with vague or incomplete terms that leave room for confusion.
- Unclear Terms: One of the most common mistakes is failing to spell out the details of the deal. Deposit amounts, payment deadlines, and closing dates need to be clearly stated. Contingencies, such as those related to inspections, financing, or the sale of another property, should include firm deadlines and specific conditions. When these terms are left open-ended or ambiguous, disputes are more likely to arise.
- Non-Standard Clauses: Sometimes, parties or agents insert customized clauses into the agreement that may not align with standard Massachusetts practices. These clauses may include unusual inspection timeframes, vague seller responsibilities, or poorly written penalty provisions. Even if well-intended, non-standard language can introduce uncertainty and trigger unintended consequences.
The Fix: Before signing anything, have a real estate attorney review the agreement. An attorney can clarify confusing terms, remove risky language, and help ensure the contract reflects your understanding of the deal.
Binding Offers
The Offer to Purchase is often the first step towards agreement between the Seller and the Buyer. However, many parties do not realize that once the Offer to Purchase is accepted and signed by the Seller and the deposit is paid by the Buyer, it becomes a binding contract.
- Details Are Binding: Once executed, the terms of the Offer to Purchase are enforceable, and neither party can change the details unless both parties agree. For example, if the closing date no longer works for one side, the other party does not have to agree to reschedule.
- Consequences of Termination: If the Offer to Purchase contains the specifics of the transaction, such as the names of the parties, the purchase price, and the closing date, a party may not be able to simply walk away. If the Seller attempts to terminate a valid Offer to Purchase, the Buyer may be able to seek specific performance and force the Seller to sell. If a Buyer walks away from an Offer, they may lose their deposit.
The Fix: Always review the Offer to Purchase carefully before signing. Talk with your attorney to ensure you understand exactly what you’re agreeing to and what it would mean to cancel or modify the deal later on.
Title Problems
Title issues are another frequent cause of delays and failed transactions in Massachusetts home sales.
- Unresolved Liens or Claims: A home may look ready to sell on the surface, but in the public records, it might still be encumbered by unpaid taxes, old mortgages, or court judgments. These issues need to be resolved before the property can be transferred cleanly to a new owner.
- Errors in Public Records: Clerical mistakes, inaccurate legal descriptions, or missing documents can all create title defects. These errors often come to light during the closing process and may require time and money to correct.
The Fix: A comprehensive title search, conducted early in the process, can uncover most issues. Sellers should work with their attorney to clear up any problems ahead of time. At the same time, buyers should insist on reviewing the title report and consider purchasing title insurance for added protection.
Contingency Pitfalls
Contingencies are supposed to protect buyers and sellers, but if poorly written, they can do more harm than good.
- Inspection Contingencies: Some agreements fail to specify how inspections should be conducted or what happens if problems are found. Without clear terms, parties may argue over deadlines, repair obligations, or the buyer’s right to walk away.
- Financing Contingencies: Vague financing clauses can also backfire. If a buyer’s ability to secure a mortgage isn’t tied to specific terms (such as loan amount or interest rate), the seller might be left in limbo if the buyer backs out too late in the process.
The Fix: Clear, well-defined contingency clauses are key. Your attorney can help draft provisions that protect your interests, outline expectations, and limit the risk of disputes or delays.
Due Diligence Oversights
Both buyers and sellers have a responsibility to do their homework. Failing to gather key information or verify facts about the property can create problems down the road.
- Failure to Research Property History: Zoning restrictions, conservation regulations, flood zones, and past renovations all affect how a property can be used. Ignoring these factors may lead to unpleasant surprises, like finding out you can’t build that addition, or worse, that an earlier renovation was never properly permitted.
- Lack of Proper Documentation: Sellers who can’t produce important documents, such as prior purchase contracts, warranties, or repair receipts, may face delays or legal challenges from cautious buyers.
The Fix: Take the time to gather all relevant documents before listing the property. Buyers should ask questions, verify disclosures, and review town records when appropriate. If something seems off, an attorney can help dig deeper and ensure everything is in order before you move forward.
Final Thoughts
Home sales in Massachusetts come with legal strings attached. Missteps with contract terms, title records, contingencies, or due diligence can put your transaction and your investment at risk. The good news? Most of these issues are avoidable. With the right preparation and guidance, you can protect your interests and move toward closing with confidence.
A knowledgeable real estate attorney can make all the difference. By spotting issues early, explaining your rights, and steering the process forward, your attorney becomes a key ally in making your sale or purchase a success.
