Buyer, Seller Agreements to Waive Inspections Catch the Attention of State Governments
State lawmakers and REALTOR® associations are taking notice of the growing trend in which home buyers waive inspection contingencies to strengthen their offers. While a home inspection provides valuable peace of mind for most buyers, competitive markets have driven many to skip this step.
The REALTORS® Confidence Index, a monthly report from the National Association of REALTORS® (NAR), found that in September, 21% of buyers chose to forgo inspection contingencies—an increase from 18% in August and 17% in September 2024.
Legislative Response
Due to the rising number of inspection waivers, the home inspection industry has urged state legislators to examine the issue. In Massachusetts, the Affordable Homes Act, enacted in 2024, includes a provision that restricts sellers from requiring buyers to waive inspections as a condition for accepting an offer.
“a seller of a residential property, or their agent, shall not condition the acceptance of an offer to purchase or the execution of an agreement to sell on the prospective purchaser's agreement to waive, limit, restrict or otherwise forego a home inspection.”
This regulation took effect on October 15, 2024, though limited exceptions such as property auctions still apply.
Market Impact
As more states consider similar measures, housing professionals are balancing the need for faster transactions with protecting buyers from potential long-term risks.
Author’s Summary: Legislators and real estate leaders are acting to limit inspection waivers, ensuring buyers maintain crucial protections even in highly competitive markets.