PEABODY — State Rep. Thomas P. Walsh (D-Peabody) has introduced a bill he hopes will protect the rights of first-time homebuyers.
The proposed legislation is aimed at helping residents maneuver through an increasingly competitive real-estate market, which has resulted in prospective buyers waiving rights designed to protect them.
“In just two years, the average price for a home in Massachusetts has increased more than 27 percent,” Walsh said. “The limited housing supply and stiff competition for homes on the market have pressured buyers to waive home inspections, pay over asking price, and make further concessions to the selling party. This legislation will serve to empower and protect Massachusetts residents during their most expensive financial transaction in their lifetime.”
This legislation, if passed, will require real estate agents and mortgage brokers to provide an informational guide to potential homebuyers; this guide will explain the homebuyer’s rights and protections under Massachusetts law.
Walsh said he started hearing about anxious buyers who were increasingly waiving their customary rights about things like home and septic inspections about two years ago. At that time, he said, the real-estate market was “heating up” and prospective buyers were essentially placed in bidding-war situations.
According to Walsh, the guide will help educate consumers by sharing helpful information pertaining to lead-paint disclosure requirements, septic-tank inspections, the importance of home inspections, and will also further other consumer protection considerations in connection with purchasing homes.
House Bill 4072, “An Act establishing a first-time homebuyers bill of rights,” is currently before the Joint Committee on Housing, where it is awaiting further action. Walsh said the committee hasn’t “reported it out” yet, but he hopes it will be before the Ways and Means Committee soon.
“This legislation isn’t mandating anything, but will help first-time buyers become more informed,” he said. “I first started hearing about what was happening in the real-estate market from conversations I was having with people around town, and my concern is that when people are waiving these protections, they may get hit pretty hard in the next few years when serious problems come to light, things that they may have avoided had they known how to protect themselves.
“You do have a lot of people whose eyes are wide open but many are not. This will help those people understand how to protect themselves.”
Anne Marie Tobin can be reached at [email protected].
