Massachusetts Laws
Requirement to Record: Not legally required to be recorded. However, leases longer than 7 years must be recorded to be enforceable against third parties and any option to purchase establishes notice only if recorded.[1]
Expiration: There is no statutory expiration for constructive notice.
Maximum Term: State law does not impose a maximum term for a residential lease with an option to purchase.
No Duration: Without a specified duration, the option will expire automatically with the end of the lease.
Signing Requirements: Must be in writing and signed by the seller.[2]
Required Disclosures (5)
1. Fire Insurance – Landlords are required to make tenants aware of their fire insurance coverage.[3]
2. Follow-up Deposit Statement – A landlord must disclose the name and location of the bank where a tenant’s security deposit is being held, as well as the specific account number.[4]
3. Inventory Checklist – Tenants must be provided with an inventory checklist containing the following language: ”This is a statement of the condition of the premises you have leased or rented. You should read it carefully in order to see if it is correct. If it is correct you must sign it. This will show that you agree that the list is correct and complete. If it is not correct, you must attach a separate signed list of any damage which you believe exists in the premises. This statement must be returned to the lessor or his agent within fifteen days after you receive this list or within fifteen days after you move in, whichever is later. If you do not return this list, within the specified time period, a court may later view your failure to return the list as your agreement that the list is complete and correct in any suit which you may bring to recover the security deposit.”[5]
4. Lead-Based Paint Disclosure & EPA Pamphlet – If the property was built before 1978, landlords must disclose the possibility of the presence of lead-based paint on the premises.
5. Security Deposit Receipt – A receipt must be provided when a security deposit is collected.[6]
Seller’s Disclosures (2)
1. Seller’s Property Disclosure Statement (optional) – Although it is not required by state law, the property seller may elect to provide the purchaser with an accounting of the property’s condition at the time of sale.
2. Title 5 Addendum (septic tanks) (conditional) – If there is a septic tank on the premises, it must be disclosed to the buyer. This disclosure acknowledges that an inspection has been completed within two years of the title transfer as required by state law.[7]