The Massachusetts Home-Buying Process: Your Step-by-Step Checklist

Ask your agent for a list of similar homes that recently sold in the same neighborhood. Looking at the prices, days on market, and condition helps you decide what to offer without overpaying or losing out.

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In Massachusetts you use a standard Offer to Purchase form (most often the Greater Boston Real Estate Board or Massachusetts Association of Realtors form). Once signed by both sides it's a binding contract under M.G.L. c. 259, §1 — not just a placeholder — so read every line before signing. The form sets price, deposit, key dates, and when the Purchase and Sale Agreement will be signed.

Cost: $1,000 (typical initial deposit)

Contingencies are escape hatches that let you walk away and get your deposit back if something goes wrong. The most common in Massachusetts are an inspection contingency (usually 7-10 days) and a mortgage contingency that will be detailed in the Purchase and Sale Agreement. In hot markets some buyers waive these to compete, but understand the risk first.

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If the agent on either side, or their family, has a personal financial interest in the home, Massachusetts rules require them to disclose that in writing to all parties before the deal moves forward. You'll be asked to sign an acknowledgment. Ask your agent to confirm whether this applies.

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The seller may counter your offer on price, closing date, deposit amount, or items left in the home. Your agent presents counters and helps you decide. Discussing pay between competing agents to set a floor is an antitrust violation, so commissions are always negotiated with you directly, not with the other side.

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Once the seller signs the Offer to Purchase, ask your agent for a fully signed copy and confirm the next deadlines: inspection, deposit, and Purchase and Sale Agreement signing. Save these in one folder — you'll reference them constantly.

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Massachusetts is an attorney state — a licensed Massachusetts attorney must conduct the closing and give a title opinion. Your lender's attorney usually handles paperwork for the bank, but you should hire your own attorney to review the Purchase and Sale Agreement and represent your interests. Fees typically run $800-$1,500 for buyer-side representation.

Cost: $800-$1,500 typical

The Purchase and Sale Agreement (P&S) is the longer, lawyer-drafted contract that replaces the Offer to Purchase as the controlling document. It spells out the mortgage contingency, deposit, title requirements, and closing date. Your attorney negotiates the rider on your behalf. Typical signing window is 10-14 days after the offer is accepted.

Cost: Included in attorney fee

When you sign the P&S, you usually pay a second deposit so your total deposit reaches roughly 5% of the purchase price. Massachusetts brokers and attorneys must keep client deposits in a separate escrow or trust account at a Massachusetts-licensed bank — it can't be mixed with anyone's operating money.

Cost: Usually brings total deposit to ~5% of price

Once you're under contract you can lock in your interest rate with your lender for a set window (often 30-60 days). Locking protects you from rate hikes but costs more if rates fall. Ask your loan officer about float-down options.

Cost: Varies (sometimes a small fee)

Massachusetts condos are governed by M.G.L. c. 183A. The condo association must issue a Section 6(d) certificate within ten business days of a written request, showing any unpaid common charges or assessments tied to the unit. Your attorney will also review the master deed, bylaws, and recent meeting minutes for red flags like pending litigation or special assessments.

Cost: $50-$200 (6(d) fee, paid by seller in most cases)

Pick a Massachusetts-licensed home inspector to do a general inspection within your contingency window. They'll check the roof, foundation, plumbing, electrical, heating, and visible structure. Plan to attend so you can ask questions in person.

Cost: $400-$800 typical

Federal Title X and Massachusetts law both require sellers of homes built before 1978 to give you any known lead paint records, an EPA pamphlet, and a 10-day window to do a lead inspection. Massachusetts adds the Lead Law (M.G.L. c. 111, §§189A-199B), which can require deleading if a child under six will live in the home. Talk with your attorney about your options before waiving any lead testing.

Cost: $300-$600 (optional lead inspection)

Radon (a natural gas) and wood-destroying insects like termites are common Massachusetts concerns, especially in basements and older wood-frame homes. These are usually separate tests, often done the same day as the home inspection. Your lender may also require a pest report for certain loans.

Cost: $150-$300 typical (each test)

Older Massachusetts homes sometimes have underground oil storage tanks. Under M.G.L. c. 21E, the property owner can be on the hook for cleanup if a tank has leaked. If the inspector spots an oil tank — above ground or underground — ask for tightness testing or a 21E environmental assessment before closing.

Cost: $500-$2,500 typical (if testing ordered)

Under 310 CMR 15.000 (Title 5), most homes with a private septic system must be inspected by a licensed Title 5 inspector before transfer of title. The seller usually orders and pays for it, and a passing report is valid for two years. If the system fails, the seller typically has to repair or replace it before closing, or you can negotiate a credit — ask your attorney.

Cost: $400-$900 (paid by seller in most cases)

Read the written report carefully with your agent and attorney. You can accept the home as-is, ask the seller for repairs or a price credit, or walk away within your contingency window and get your deposit back. Don't sign off until you're comfortable.

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Massachusetts agents are not required to investigate or report sex offender information for a property, even if asked, beyond pointing you to the registry. You can search Level 2 and Level 3 offender information for free through the Sex Offender Registry Board website or your local police department.

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After signing the P&S, send your lender the formal application along with the signed contract. They'll send you a Loan Estimate within 3 business days that details your rate, monthly payment, and closing costs. Compare it against your original quote.

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The mortgage contingency in your P&S sets a deadline by which you must have a written loan commitment. If you can't get a commitment by that date and follow the notice steps in the contract, you can usually back out and recover your deposit. Calendar this date and check in with your lender every week.

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Your lender orders an independent appraiser to confirm the home is worth at least the purchase price. You pay the fee, usually $500-$700, often charged at the time of application. If it appraises low, your attorney can renegotiate the price or you may exit under the appraisal/financing terms in your contract.

Cost: $500-$700 typical

Your lender requires a homeowners insurance policy in place at closing. Get quotes from 2-3 carriers, and ask about flood insurance if the home is near water — some Massachusetts coastal and river towns require it.

Cost: $800-$2,500/year typical for single-family

Once underwriting approves your file, the lender issues a written loan commitment letter — sometimes with conditions you still need to clear. This needs to happen by the mortgage contingency deadline in your P&S. Forward a copy to your attorney as soon as you get it.

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Don't open new credit cards, finance a car, change jobs, or move large sums of money around until after closing. Lenders re-verify your finances right before funding, and any surprise can delay or kill the loan.

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Your lender must send you a Closing Disclosure at least 3 business days before closing. It lists the final loan terms, your monthly payment, and every penny of closing costs. Compare it line by line to your Loan Estimate and flag anything that changed.

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Under M.G.L. c. 148, §26F and §26F½, the seller must get a Certificate of Compliance from the local fire department for working smoke and carbon monoxide alarms before transfer. Without this certificate, the closing usually can't happen. Your attorney will confirm the seller has it.

Cost: $0 to buyer (seller pays inspection fee)

If the seller is a foreign person under FIRPTA (the Foreign Investment in Real Property Tax Act), the buyer — or the closing attorney acting for the buyer — has to withhold 15% of the gross sales price unless an exemption applies. Your attorney handles the paperwork, but you should ask early so there are no surprises at closing.

Cost: $0 to buyer (handled by closing attorney)

Within 24-48 hours of closing, walk through the home one last time with your agent. Confirm agreed-upon repairs are done, the home is empty (or as agreed), all systems work, and no new damage exists. Bring your offer and any repair list.

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Your attorney will give you the final "cash to close" number and wire instructions. Confirm the wire instructions by phone with a known number for the law firm before sending — wire fraud is a real risk in real estate closings. Send the wire from your bank the day before or morning of closing.

Cost: Wire fee $15-$40 typical

You'll sit down (in person or remotely if allowed) with the closing attorney, who runs the meeting, walks through every document, and notarizes signatures. Bring a government-issued photo ID and any documents your attorney told you to bring. Massachusetts requires this be conducted by a licensed Massachusetts attorney.

Cost: $0 (your attorney fee already paid or included)

Massachusetts imposes a deeds excise (transfer tax) on the recording of every deed under M.G.L. c. 64D, §1 — currently $4.56 per $1,000 of the sale price (higher in Barnstable County). The deeds excise is typically paid by the seller, but on the buyer side you'll pay recording fees for the deed and mortgage, plus title insurance premiums.

Cost: Varies (recording fees ~$155 per document, title insurance varies)

After you sign and the lender funds, the closing attorney records the deed and mortgage at the county Registry of Deeds. The deeds excise stamps must be paid before recording can happen. Title doesn't legally pass to you until recording. Your attorney will confirm when this is done — usually the same day.

Cost: $0 (included in closing costs)

Once recording is confirmed, you'll get the keys, garage openers, and any codes for the home. Save copies of every closing document — you'll need them for taxes, insurance claims, and eventually selling.

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Set up electric, gas, water/sewer, internet, and trash in your name as of the closing date. File a change of address with USPS and update your driver's license and voter registration. Your agent can usually share a utility checklist for the town.

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Keep the Closing Disclosure, deed, mortgage, and any receipts from movers, repairs, and improvements. Mortgage interest and property taxes may be deductible on your federal return, and your cost basis matters when you eventually sell. A simple folder (digital or physical) is enough.

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