Buying a New Construction Home in Massachusetts: What to Watch For

A builder or developer may use its own reservation agreement and purchase contract rather than a familiar resale form. The documents can favor the seller on deposits, construction changes, completion dates, financing, default, and dispute procedures. Have your own Massachusetts real estate attorney review them before paying a nonrefundable reservation fee or signing.

Confirm who owns the land during construction, when title transfers, which plans and specifications control, and what happens if the home cannot be completed as represented. A sales representative's verbal assurance is not a substitute for an enforceable written term.

Attach the final plans, specifications, finish schedule, selections, allowances, and site plan to the contract when possible. Model-home finishes, renderings, advertisements, and sample photographs may show upgrades or features that are not included in the base price.

Allowances are budgets, not guaranteed final prices. Ask how overages, credits, taxes, labor, delivery, and builder markups are calculated. Require written, priced change orders signed by both parties before work proceeds, and keep a single record of selections and approvals.

New does not mean defect-free. Independent inspections can identify framing, flashing, drainage, insulation, mechanical, finish, and safety issues that a municipal code inspection may not address from a buyer's perspective. Negotiate access for inspections at useful construction stages and again before closing.

Massachusetts generally protects a buyer's opportunity to obtain a home inspection, but 760 CMR 74.00 contains a limited exemption for a pre-completion sale of a newly constructed home when the contract is signed before substantial completion and the seller offers at least a one-year express written warranty covering the required systems and structural integrity. Do not assume the exemption eliminates every negotiated inspection right; ask your attorney to address access, notice, repair, reinspection, withdrawal, and deposit terms in the contract.

Ask the attorney and appropriate professionals to confirm that the project has the required local permits, inspections, approvals, and documentation for lawful occupancy. A lender's willingness to close does not replace your own review of open work, zoning issues, or promised improvements.

Define what 'substantially complete' and 'ready for occupancy' mean in the contract. Decide whether closing can occur with unfinished items, who holds funds if work remains, and what evidence is required before any holdback is released. Do not rely on an informal promise that crews will return after closing.

Obtain the complete written builder warranty before signing, not at the closing table. Review what is covered, excluded, and measured as a defect; when each coverage period begins; who performs repairs; how quickly you must give notice; and whether a claim requires mediation or arbitration.

A warranty is not a reason to skip an inspection. Some defects may be easier to correct before the builder receives the final funds, and warranty language may impose short reporting deadlines or exclude settlement, grading, cosmetic variation, appliances, owner maintenance, or work performed by others. Ask your attorney about statutory or common-law rights rather than assuming the written warranty is your only protection.

Construction schedules and mortgage commitments do not always align. Rate locks can expire, appraisals can come in below a price increased by upgrades, and a lender may require completion of specific work before funding. Ask the lender how it treats extended completion dates, change orders, deposits, appraisal updates, and unfinished items.

Keep reserves outside the upgrade budget. Ownership costs may begin with window treatments, appliances, landscaping, association contributions, utility setup, and repairs or adjustments that the contract or warranty does not cover.

For a new condominium or planned community, review the master deed, bylaws or trust, rules, budget, insurance, reserves, phasing rights, and the developer's continuing control. Early budgets may be estimates rather than a mature record of actual expenses.

Ask what remains to be built, whether plans can change, how many units must sell before owners control the association, who pays deficits during buildout, and whether roads, drainage, utilities, amenities, or open space will be public, private, or association-maintained. Your attorney and lender should review the project documents early.

Inspect the actual home against the signed plans, selections, change orders, inspection reports, and punch list. Test accessible doors, windows, fixtures, appliances, heating and cooling controls, outlets, plumbing, and included equipment. Photograph unresolved items and record meter readings and delivered keys, controls, manuals, warranties, and access devices.

If material work is incomplete or the home differs from the agreement, contact your attorney and lender before closing. Closing can reduce practical leverage even when contractual or warranty remedies remain.