The Massachusetts Offer to Purchase, explained
What goes into a Massachusetts offer, what you are committing to when you sign, and how to make a strong offer without taking on risk you do not understand.
In Massachusetts you make an offer by signing an Offer to Purchase with a deposit. If the seller signs, it can be a binding contract. It sets the price, deposits, contingencies and deadlines. A longer Purchase and Sale Agreement, negotiated by attorneys, follows about 7 to 14 days later.
What is in the offer
- Price and deposits. The amount you are offering, the deposit with the offer, and the additional deposit at the Purchase and Sale Agreement.
- Who holds the deposit. Usually the listing broker or an attorney, in an escrow account.
- Deadlines. When the seller must respond, when the inspection must be done, when the P&S must be signed, the mortgage commitment date, and the closing date.
- Contingencies. Conditions that let you withdraw and keep your deposit if they are not met.
- Other terms. Anything else you need to agree on now, such as what stays with the house.
Common contingencies
| Contingency | What it protects |
|---|---|
| Home inspection | Your right to inspect and walk away if the results are not acceptable. Sellers cannot require you to waive it. The 2025 law. |
| Mortgage | Your deposit if you cannot get a loan commitment by the agreed date. |
| Appraisal | Your deposit if the home appraises below the price. Often folded into the mortgage contingency. |
| Condo documents | Time to review the master deed, budget, minutes and insurance. |
| Sale of your home | Ties the purchase to selling your current home. Less common in competitive markets. |
| Lead paint | Homes built before 1978: your right to a lead inspection. |
From offer to P&S
Once both sides sign the offer, the clock starts. You schedule the inspection, the attorneys start on the Purchase and Sale Agreement, and you send your full mortgage application. The P&S covers what the offer leaves out: title, condition of the home at closing, what happens if either side defaults, and any repairs or credits agreed after the inspection. This is when your attorney matters most.
Making a strong offer under the current rules
- Price it on recent sales. We pull the comparable sales and talk through what the seller is likely to see from other buyers.
- Strong financing. A full pre-approval and a larger down payment both help.
- Reasonable timelines. A short, realistic inspection window and flexibility on the closing date.
- Deposit size. A larger deposit signals commitment, but it is money at risk if you default.
- Escalation clauses. They can help in multiple offers. Know exactly how high you are willing to go before you use one.
You cannot offer to waive the home inspection to win, and we recommend against personal letters to sellers for fair housing reasons.
Before you sign
Read every line. If you are unsure about a term, ask us or your attorney before you sign, not after. If an offer feels rushed, it is fine to slow down. Not every home is worth the risk of a term you do not understand.
Sources
- McCarthy v. Tobin, 429 Mass. 84 (1999)
- 760 CMR 74.00: Residential home inspection waivers
Questions this page answers
Is an Offer to Purchase binding in Massachusetts?
It can be. In McCarthy v. Tobin (1999), the Massachusetts Supreme Judicial Court held that a signed offer can be an enforceable contract even when it says a Purchase and Sale Agreement will follow, if the parties intended to be bound. Treat a signed offer as a real commitment.
How much is the deposit with an offer in Massachusetts?
It is negotiable. A smaller deposit usually goes with the signed offer, and a larger one at the Purchase and Sale Agreement, often bringing the total to about 5% of the price. The listing broker or an attorney usually holds it in escrow.
How long does a seller have to respond to an offer?
Whatever deadline the offer sets. Offers in Massachusetts include a time and date by which the seller must accept. After that, the offer expires unless you extend it.
Can I back out after my offer is accepted?
Through your contingencies, yes. If the inspection, mortgage or other contingencies are not met within their deadlines, you can usually withdraw and get your deposit back. Outside of those, backing out can cost you the deposit or more.
What is the difference between the offer and the Purchase and Sale Agreement?
The Offer to Purchase is a short form with the price, deposit, contingencies and key dates. The Purchase and Sale Agreement is a longer contract negotiated by attorneys that covers title, repairs, condition at closing and remedies. It is usually signed 7 to 14 days after the offer.
Should I write a letter to the seller?
We advise against it. Personal letters can reveal details such as family status, religion or national origin that sellers are not allowed to consider under fair housing law. Let the terms of the offer do the work.