Buying New Construction in Massachusetts: How the Contract Differs

Buying a newly built home in Massachusetts is a different transaction from buying an existing one, and the biggest difference is the contract. A resale runs on the standard purchase and sale agreement, negotiated between two attorneys. New construction typically runs on the builder's own contract, drafted by the builder's counsel, and it is not neutral.

That is not a reason to avoid new construction. It is a reason to have your own attorney read the contract before you sign it, which is advice buyers accept readily for a resale and often skip here — precisely because the process feels more like a purchase from a company than a negotiation with a person.

What changes in the contract?

• Deposits are larger and released differently. Builder contracts frequently call for substantial deposits, sometimes staged against construction milestones, and sometimes released to the builder to fund construction rather than held in escrow. Whether your deposit is protected if the builder fails is a question to answer before you write the check, not after.
• Completion dates are estimates. Builder contracts typically allow generous extensions for weather, materials, and municipal inspections. Understand what your remedy is if the home is not finished — and whether you have one at all. If you have sold your existing home and coordinated a move, an open-ended completion date is a real exposure.
• Allowances define the finishes. The contract specifies a dollar allowance for flooring, lighting, appliances, cabinetry, and fixtures. Selections above the allowance are change orders at your cost, and allowances are frequently set at a level well below what the model home displays. Ask specifically whether the model's finishes are within the standard allowances. The answer is often no.
• Change orders are where budgets go. Every change has a price and often a schedule impact. Get them in writing, priced, before authorizing.

The Massachusetts rule barring sellers from conditioning acceptance on a waived home inspection carves out pre-sales of newly constructed homes that come with a warranty of at least one year — see the inspection law guide. If you are buying a pre-sale, the warranty is what you are getting instead of that protection, which makes the warranty terms worth reading with real attention.

Should you still get an inspection?

Yes. New does not mean flawless, and inspectors find real problems in new construction routinely — missing insulation, improper flashing, drainage that will cause trouble in year two, HVAC installed incorrectly, framing issues concealed by finished walls.

The most useful new-construction inspection is not one but two or three, timed to the build: a pre-drywall inspection while framing, wiring, and plumbing are still visible, and a final inspection before closing. The pre-drywall one is the valuable one, because after drywall everything expensive is hidden.

Budget for it and ask about access early — some builders resist, and you want to know that before you are committed.

What does the warranty actually cover?

Read it rather than accepting that it exists. Typical structures cover workmanship and materials for a first period, systems for a longer one, and major structural elements for longest. Specific exclusions matter a great deal, as does the process for making a claim and what happens if the builder disputes it.

Ask what happens if the builder goes out of business. A warranty backed only by a single small builder is worth what that builder is worth. Some warranties are insured by a third party; those are meaningfully stronger.

Also ask about the punch list process — how remaining items are documented at closing, what holdback if any secures their completion, and how long the builder has. Punch list items completed promptly are a minor annoyance. Punch list items unfinished six months later are a permanent one.

How does new construction differ on value?

• Appraisal can be awkward where a subdivision has few closed sales, or where a home is meaningfully larger or better finished than the surrounding stock. See our appraisal guide.
• Everything is under warranty and nothing needs replacing, which is a genuine financial advantage in the early years against a house that will need a roof.
• Energy performance is materially better than older stock, which shows up monthly.
• Lot and location may be the compromise. New construction in an established town like Newton generally means infill — a teardown or a subdivided lot — so the tradeoffs are about the specific parcel rather than the neighborhood.

Do you need your own representation?

Yes, and this is the most common and most expensive mistake. The agent in the model home works for the builder. They are pleasant, knowledgeable, and not your advocate. Bringing your own agent generally costs a buyer nothing that the builder was not already prepared to pay, and most builders require that your agent accompany you on the first visit for that arrangement to apply — so register on your first trip, before you tour alone.

General information, not legal advice.