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What All Buyers Need to Know:


First Time Buyer? Here is a good link for those who would like to learn more about the First Time Buyer's Programs and other programs, including Down Payment Assistance Programs within the City of Lowell:

Whether you are a new buyer or have purchased property before, here is a very good resource for information. Check out RESPA - Real Estate Settlements Procedures Act.

RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD.

And, speaking about RESPA and settlement costs, there is a new site that will allow more transparency and some good old fashioned competition! Go to to find service providers who may be able to lower your closings costs. Find out what is negotiable, what is not, or whether you are being treated fairly. This site, and the service it provides to you, will help to reduce erroneous charges, promote competition, and help to stop fraudulent practices when applying for a mortgage.

New Law for Home Owners - Please read up on the newly implemented "Nicole's Law" which affects ALL homes - no matter if they are up for sale.

If you've already moved and are new to the area - Welcome! Now, you will need to contact local utility companies for service. Click the link: Local Utility Company Contact Information for specific information.

Important Information For all Buyers and Sellers

The following article is a re-print from the Buyer's Rights Page of the Massachusetts Association of REALTORS web-site. It is very informative, and below that are links to the same article in various languages for your convenience.

A Massachusetts Consumers Guide To


The purchase or sale of a home is one of the largest transactions that an individual makes during a lifetime. Following years of planning and saving, a buyer begins the process of finding the home of the buyer's dreams. The search can provide a challenge and an opportunity. The assistance of a qualified real estate agent can transform complex negotiations into a most rewarding endeavor for buyer and seller. This pamphlet is provided as a consumer service to the home buying and selling public and demonstrates the Massachusetts REALTORS'® commitment to promoting home ownership opportunities for all citizens of the Commonwealth.

For additional information on the home buying and selling process, we invite consumers to browse the public side of the Massachusetts Association of REALTORS®(MAR) web site at Community profiles and practical information and guidelines for buyers and sellers of residential property are available on this site.


Exclusive Listing Agreements:

Although there are several different types of listings for the sale of real property that an owner may give a broker, the most common in Massachusetts is an "exclusive right to sell" agreement. Under an "exclusive right to sell" agreement the listing broker is given the right to earn a fee for professional services if the property is sold by anyone, including to a buyer located solely through the efforts of the owner.

Multiple Listing Service

Where a buyer works with a real estate agent who participates in a multiple listing service ("MLS"), the agent can cooperate in showing a buyer any property in the MLS, even though it may have been listed through another office.

Agency Relationship

Whether you are the buyer or the seller you can choose to have the advice, assistance and representation of your own agent. Do not assume that a broker is acting on your behalf unless you have contracted with that broker to represent you. If you are a seller you may authorize your listing agent to cooperate with agents from other firms to help sell your property. These cooperating agents may be subagents who represent a seller or be agents of buyers. A seller can generally obtain broader exposure for a property by authorizing a listing broker to compensate a cooperating agent who successfully procures a buyer. If you are a buyer you have the option of working with a seller's agent or buyer's agent. The decision will depend upon the types of services you desire and the method of compensating the agent. A broker who is representing a buyer and shows that buyer a property listed with the broker's office is said to be a "dual agent". Dual agency is permissible provided that both buyer and seller have given informed consent. The duties of a real estate licensee do not relieve the consumer of the responsibility to protect his/her own interest. If advice is desired regarding legal, tax, insurance or other matters, a professional in those areas should he consulted. Regulations of the Board of Registration of Real Estate Brokers and Salespersons require that written notice of the agency relationship of a real estate agent be provided to buyers and sellers at the first personal meeting to discuss a specific property. The buyer and seller are asked to sign an acknowledgement of receipt of the notice.

Click Massachusetts Agency Disclosure Notice for the descriptions as they appear on the back of the Mass Association of REALTORS - Form 704.

Real Estate Agents Are Not Inspectors And Do Not Guarantee Property Condition

Real estate agents are not trained to find structural, electrical, plumbing, septic and other problems with a home or land and do not guarantee the condition of property they sell. In general, agents have no duty to inspect a property for defects and have no duty to verify information received from sellers, municipal departments or other reputable sources. Naturally, real estate agents may not "knowingly (make) any substantial misrepresentation" (MGL c. 112 section 87AAA(a)). Agents have no liability for innocently passing along to buyers information from reputable sources, even if it is later determined to be inaccurate. Agents who provide buyers with names of lawyers, accountants or other professionals do not automatically guarantee the accuracy of the reports of those professionals. Since May 1, 2001 home inspectors have been required to be licensed by the commonwealth and to carry errors & omissions insurance. REALTORS® can provide you with a list of inspectors.


If you wish to hire a Massachusetts Licensed Professional, you may check his or her Licensed by visiting this page: How to Check a License


Right To Accept Terms Of Listing The seller has the absolute right to set the listing price. The real estate agent may prepare an "opinion of value" to assist the seller in setting the price. An agent may refuse to accept a listing for any lawful reason.

Right To Have All Offers Presented

By law, real estate agents are required to present all offers to a seller. The Massachusetts Board of Registration of Real Estate Brokers And Salespersons interprets this obligation as continuing until an agreement has been signed. Normally real estate agents will not solicit buyers or continue to show property after acceptance of an offer, unless otherwise agreed. Even if a buyer makes an offer for the full listing price, the buyer cannot usually require the seller to accept, since listing prices are considered invitations to bid.

Nature of Seller's Duties to Condition of the Property

Every seller has the duty to respond fully and accurately to any request for information about a property. This is true whether the information is requested directly by a prospective buyer or by a real estate agent who, in turn, may pass along the information to a prospective buyer. Answers that are misleading or are half-truths are improper. If a seller is unsure of information, the seller should not guess, but should qualify his answer. Otherwise, the buyer may be misled. Sellers may be required to provide information about the presence of lead paint or urea formaldehyde foam insulation, where applicable.

Septic Systems And Cesspools

Massachusetts environmental regulations require that a property which is serviced by a septic system, cesspool or other private waste disposal system be inspected within two (2) years before sale (three (3) years if pumped at least once each year) or within six (6) months after sale (if weather conditions prevent a pre-sale inspection). Only licensed inspectors and soil evaluators may conduct such inspections. Should a system fail an inspection, the buyer and seller may negotiate who will pay to repair or replace the system or, if the agreement for sale contains a contingency, the buyer may decide to withdraw. The fact that a system passes a Title 5 inspection is not a guarantee that the system will continue to function properly. Even a properly maintained system may only last an average of 15 to 20 years.

Smoke Detector Certificates

Massachusetts law requires that all residential structures be equipped with approved smoke detectors upon sale. The local fire department will issue a certificate to prove compliance.


Condition of Property:

A buyer may wish to employ a professional home inspector, lead paint inspector, termite/pest inspector, sewage/septic system inspector, engineer or other expert of his choice to evaluate the property as a condition of an offer. Massachusetts law does not automatically give buyers the right to a home inspection, however at the time of the signing of the first written contract to purchase you will receive a document entitled "Home Inspectors: Facts For Consumers About Home Inspections." If the buyer desires that the obligation to purchase be contingent upon an inspection, the buyer should include an inspection contingency in any offer. The buyer may also wish to check public records to verify information concerning taxes or assessed value, zoning and history of work performed.

Lead Paint, Hazardous or Toxic Materials

In purchasing any property the buyer may wish to conduct special tests to determine the presence of toxic or hazardous materials. These include lead paint, radon, airborne asbestos, oil spillage etc. Information from the Department of Public Health will be supplied to you concerning lead paint and urea formaldehyde foam insulation, where applicable. For residences built before 1978 Massachusetts and federal law provide that buyers be given the right to take up to ten (10) days to inspect a property for the presence of lead paint. This right may be waived. High levels of lead may result in brain damage or other serious injuries to children. Massachusetts law does not prohibit the sale of properties containing lead point or other potentially hazardous substances.

Fair Housing Laws

Real estate agents and sellers are required by state and federal law to treat all parties in a property transaction equally and without regard to race, religious creed, color, national origin, gender, sexual orientation, age, genetic information, ancestry, marital status, presence of children, military service/veteran status or receipt of public assistance or physical or mental disabilities. If you believe you may have been the victim of unlawful discrimination, contact the Massachusetts Commission Against Discrimination.


Contract Requirements:

Agreements for the purchase of real property generally must be in writing and be signed to be enforceable. An offer signed by the buyer that includes all essential terms and which is accepted and signed by the seller can constitute a binding contract. A written counteroffer made by the seller that is accepted in writing by the buyer can also constitute a binding agreement. Many real estate agents have forms of such agreements for use by clients and customers. Often a more detailed agreement known as a "Purchase And Sale Agreement" ("P&S") will be signed by the buyer and seller after an offer has been accepted. The P&S will then replace the earlier agreement. If you are unsure of your risks and responsibilities under any proposed agreement you should contact a qualified attorney to assist you.

Deposit By The Buyer

It is customary for a buyer to give a deposit or binder as a show of good faith at the time an offer is presented. While the amount is negotiable, it is typically 5% to 10% of the purchase price. Normally this deposit is held in escrow, but not deposited until the seller has accepted the buyer's offer.

Mortgages And Financing Contingency

If it will be necessary to obtain institutional financing for the purchase, the buyer must fall within lender's guidelines to qualify for a loan. Loan packages, mortgage interest rates, points (pre-paid interest or administrative fees) and terms vary from one financial institution to another and will be adjusted from time to time. If institutional financing for a purchase is required, the buyer may wish to make an offer contingent upon receipt of a mortgage commitment within a specified period of time. Careful compliance with the exact conditions in a mortgage contingency clause is crucial.

Title Examination And Title Insurance

Most banks and mortgage lenders require that an examination of the seller's title to the property he conducted to determine if the property is marketable and will provide adequate security for the loan it is making. Lenders generally require title insurance up to the amount of the loan and for an additional fee, title insurance can be obtained to protect the portion of the purchase price that the buyer paid.


Zoning And Building Code Compliance:

Zoning refers to the right of a local city or town to regulate the use of a particular property. It can include whether the use may be residential, commercial or industrial; the number of dwelling units which may be located on a lot, the minimum lot size; the minimum amount of street frontage; the minimum distance a structure must be set back from the street, from the side lot line or from the rear lot line. Structures which conformed to zoning at the time they were built may be "grandfathered" in under current zoning, while structures which did not conform when built usually require a "variance" from the city or town in order to be legal.

Often homes are advertised as containing extra apartments. Such an apartment may be called an "in-law" apartment, an "au pair" suite or by some other name. Generally this refers to a structure which has been converted to add a separate dwelling unit. The buyer may wish to determine from the city or town whether such use has been approved.


All licensed real estate agents should act in a fair, professional and ethical manner. However, not all real estate agents are REALTORS®. Real estate agents who are REALTORS® subscribe to a national code of ethics that helps to assure the fairness, integrity and professionalism of all REALTORS®. In addition, they are members of the Massachusetts Association of REALTORS® a trade organization comprised of real estate professionals from every city and town in Massachusetts, and they pay annual dues to be a part of that organization. However, with that stated, this does not mean that all Non-REALTOR Agents or Brokers do not subscribe to the national code of ethics, nor does it mean that all non-REALTOR Agents or Brokers would not practice fairness, integrity and professionalism within our chosen field.

REALTORS® may also hold professional designations, such as, Graduate REALTORS® Institute (GRI), Certified Residential Specialist (CRS), and Certified Buyer Representative (CBR) which demonstrate additional industry training or a concentration in a specialty area of real estate practice. These designations are achieved after attending classes through the REALTOR organization.


This pamphlet is published for voluntary use and distribution by members of the Massachusetts Association of REALTORS®. Distribution is not required, but is entirely discretionary. Publication of the information contained in this pamphlet does not create an attorney client relationship and is not a substitute for consultation with a qualified real estate attorney. In any transaction there may be other obligations you may have and measures you may wish to take to protect your interests. You should consult an attorney for legal advice concerning any particular transaction.

© Copyright 2002 Massachusetts Association of REALTORS®, All Rights Reserved

This article is also available in various languages listed here:
Arabic Translation
Cambodian Translation
Chinese Translation
French Translation
Italian Translation
Korean Translation
Portuguese Translation
Russian Translation
Spanish Translation
Vietnamese Translation

Please click this link: Buyer's Information Translated to download the article in your preferred language.

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