Buying or selling in Dedham and wondering which contingencies actually protect you? The terms you include in your offer do more than fill space. They decide what happens if financing stalls, the appraisal comes in low, or a septic inspection fails. You deserve clarity before you sign. In this guide, you’ll learn how Massachusetts contingencies work, what timelines to expect, and how to balance protection with a competitive offer in Dedham. Let’s dive in.
What a contingency is in Massachusetts
A contingency is a condition in your Purchase and Sale Agreement that must be met or waived for the deal to move forward. If a contingency is not satisfied within the deadline, the contract usually lets you renegotiate or cancel with your deposit returned, as long as you follow the notice rules in the agreement.
In Massachusetts, most residential sales use a written Purchase and Sale Agreement. Buyer and seller are typically represented by attorneys who negotiate the exact contingency language and deadlines. There is no single statewide property condition form, but sellers must not hide known material defects. That is why inspection, title, and compliance contingencies matter.
Core contingencies you should know
Financing contingency
A financing contingency protects you if you cannot secure a mortgage commitment on acceptable terms. You set a timeframe, often 21 to 45 days, to obtain formal lender approval. You agree to act in good faith by applying promptly and sending documentation. You can also specify loan type or an interest rate cap.
In a competitive market, you might shorten or even waive this contingency, but that adds risk. If you fail to get financing after waiving protections, you could be in default. Set a timeline your lender says is realistic.
Appraisal contingency
An appraisal contingency helps if the property appraises below the agreed price. If the appraisal is low, you can request a price reduction, bring extra cash, or terminate if there is no agreement within the set timeline. Many lenders will require an appraisal even if you would prefer to skip it. Some buyers include language that the appraisal must meet the purchase price to proceed.
Home inspection contingency
An inspection contingency gives you a short window, often 7 to 10 business days, to inspect and then either accept, request repairs or credits, or cancel. Inspections can include a general home inspection as well as chimney, roof, HVAC, pest, radon, and other specialty inspections as needed. For pre-1978 homes, many buyers also arrange a lead paint risk assessment.
In Massachusetts, older homes can raise specific issues. Lead paint and septic (Title 5) concerns often overlap with inspections, so schedule quickly and be clear on how you will request repairs or terminate within the deadline.
Title review contingency
Your attorney reviews the title to confirm the seller can deliver good, marketable, and insurable title. If defects show up, such as liens or unrecorded interests, the contingency allows time to fix them, negotiate a solution, or cancel if they cannot be cured.
Title insurance is common for both buyers and lenders. Your attorney typically orders a title exam shortly after the contract is signed.
Survey or boundary contingency
If you want to confirm lot lines or check for encroachments, a survey contingency allows you to investigate and object within a set time. Surveys are more typical for single-family homes and less common for condos. If you discover an encroachment, you can seek a remedy or exit as your contract permits.
Sale-of-buyer’s-home contingency
This contingency makes your purchase dependent on the sale of your current home. It can be framed as best efforts to sell by a specific date or a strict must-sell requirement before closing. In competitive situations, sellers often push back. If you use this contingency, keep the timeline tight and clear about milestones.
Title 5 and septic contingency
For properties with septic systems, Massachusetts Title 5 rules require inspection at the time of transfer in many situations. A failing Title 5 can be costly and may affect future permits. Buyers often include a specific Title 5 contingency that allows termination or renegotiation until there is a passing report or a written plan to remediate. Coordinate early with the Dedham Board of Health and schedule testing as soon as your offer is accepted.
Lead paint and environmental hazards
For homes built before 1978, sellers must comply with state lead laws, and buyers commonly request disclosure of known lead records and may conduct testing. Depending on property characteristics and lender requirements, you may also evaluate asbestos, radon, and soil or water quality. Your offer can include time to complete these assessments.
Oil tank and underground storage tank contingency
Heating oil is common in parts of Massachusetts. If an aboveground or underground tank exists, you may want a contingency to verify it is registered, intact, and not leaking. If a leak is found, cleanup and reporting can be significant. This contingency gives you room to negotiate remediation or credits.
Municipal, permit, and certificate compliance contingency
This contingency lets you confirm the property’s permit history, zoning alignment, and any required certificates. In Dedham, you should review Building Department records for past permits, open permits, or violations. For older additions or finished basements, a municipal records check is smart. You can make your purchase conditional on acceptable findings.
Timelines and what to expect
Most timelines are negotiable, but these ranges are common in Massachusetts:
- Inspection period: 7 to 14 days
- Financing commitment: 21 to 45 days
- Appraisal resolution: 7 to 14 days after the appraisal report
- Title review: 14 to 30 days
- Title 5 scheduling and reporting: 7 to 21 days, often during the inspection window
Your deposit is held in escrow according to the contract. Deposits vary by market, often around 1 to 5 percent of the purchase price. If you default after waiving contingencies or miss notice deadlines, your deposit can be at risk under the contract.
To hit every deadline, order inspections and septic testing immediately after you sign. Ask the seller for records up front, including permits, lead disclosures, septic reports, and any oil tank history. Fast coordination prevents last-minute surprises.
How to balance protection and a strong offer
You want your offer to stand out without taking on avoidable risk. Consider these approaches:
- Limit rather than waive. Instead of waiving inspection, cap your repair requests at a set amount or limit the contingency to major systems. This shows good faith while keeping an exit if something serious appears.
- Set realistic durations. Ask your lender how long underwriting truly needs and confirm inspection availability before you propose timelines.
- Keep notice rules front and center. Many contingencies require written notice by a strict deadline. Put reminders on your calendar and have your agent and attorney align on who sends which notice.
- Address appraisal risk early. If you include an escalation clause to beat other offers, remember the appraisal still has to support the price or you need extra cash. Spell out your options in case of a low appraisal.
- Be clear on “as-is.” An as-is listing does not remove the duty to disclose known material defects. You can still inspect. If you agree to as-is terms, understand whether you retain the right to terminate for severe issues.
If a contingency fails and you complied with the contract’s requirements, most agreements allow you to terminate and get your deposit back. If you try to cancel after waiving protections or you miss a deadline, you may be in breach. Precision in the wording matters.
Dedham and Norfolk County checks to do early
Dedham has a large stock of older homes, so records and systems can vary. Early due diligence reduces risk:
- Dedham Assessor’s Office. Confirm lot lines, assessed values, and tax status.
- Dedham Building Department. Review permits for renovations, additions, finished basements, and decks. Look for open permits or outstanding violations.
- Dedham Board of Health. Coordinate Title 5 inspections for septic systems and confirm any local requirements.
- Sewer and water status. Verify whether the home is on municipal services or private systems. This can affect Title 5 or water testing.
- Zoning and historic. In older neighborhoods, zoning or preservation rules can affect future renovations. Confirm permitted uses and approvals needed.
- Flood and environment. Review flood maps and any known environmental conditions that could affect insurance or lending.
Build time into your contingencies to review these items. If you plan improvements, align your municipal review with contractor walkthroughs so you have a realistic scope and cost before your inspection window ends.
Buyer checklist: what to include
- Inspection contingency with a clear process and a realistic 7 to 14 day window.
- Financing contingency with a defined commitment date and what counts as a valid lender denial.
- Appraisal contingency with your preferred options if the value comes in low.
- Title review by your attorney with seller obligations to clear liens.
- Title 5 contingency for any property with septic, scheduled immediately.
- Lead paint records for pre-1978 homes and the option to test.
- Oil tank, survey, and municipal permit review contingencies as needed.
Seller checklist: how to reduce risk and delays
- Provide available records early. Share permits, lead disclosures, septic reports, and any oil tank documentation.
- Consider a pre-listing inspection. Fix issues or set buyer expectations before you hit the market.
- Address septic upfront. If the property has a septic system, schedule a Title 5 inspection before listing or agree on a plan with your agent and attorney.
- Set tight but fair deadlines. Require timely notice from the buyer to keep the deal on track and preserve your remedies.
- Be thoughtful with as-is language. You still need to disclose known material defects. Align with your attorney on what you will and will not do.
How Smith & Oak helps you manage contingencies
You should not have to juggle lenders, inspectors, contractors, and municipal offices alone. At Smith & Oak Real Estate Co., we help you structure the right contingency strategy for the Dedham market and keep every deadline on track. Our integrated approach means we can coordinate inspections, obtain contractor bids for repair negotiations, and plan post-closing projects through our in-house contracting and property management capabilities.
For buyers, we map your financing timeline, order inspections promptly, and coordinate Title 5 when needed. For sellers, we help you gather records, evaluate pre-listing inspections, and set timelines that keep your deal moving. In all cases, we align closely with your Massachusetts real estate attorney so the contract language matches your goals.
Ready to discuss your offer strategy in Dedham? Schedule a consultation with Smith & Oak and get a plan you can trust.
FAQs
What is a contingency in a Massachusetts home purchase?
- It is a contract condition in your Purchase and Sale Agreement that must be met or waived for the deal to proceed. If unmet within the deadline, you can renegotiate or cancel as the contract allows.
How long do I have for inspections in Dedham offers?
- Inspection windows are commonly 7 to 14 days. Schedule immediately after your offer is accepted to allow time for follow-up tests and negotiation.
What happens if the appraisal is lower than the price?
- You can negotiate a price change, contribute extra cash, or terminate if your appraisal contingency allows. Lenders often require an appraisal regardless.
How does a Title 5 septic contingency work in Massachusetts?
- It gives you time to complete the required septic inspection and confirm a passing report or an agreed remediation plan. If it fails and there is no agreement, you can usually renegotiate or cancel under the contingency.
Can I cancel after a bad inspection in Massachusetts?
- If your inspection contingency allows termination and you give notice within the deadline, you can usually walk away with your deposit returned. Follow the exact notice rules in your contract.
What deposit is typical and when is it at risk?
- Deposits are often 1 to 5 percent of the purchase price, held in escrow per the contract. If you default after waiving contingencies or you miss notice deadlines, your deposit can be at risk under the agreement.
