Yes, it can. But most Massachusetts transactions do close, and the ones that fail rarely fail for mysterious reasons.
Deals break at a small number of predictable points: financing, appraisal, inspection findings, title, and the seller’s required municipal certificates. Knowing which of these merely delays a closing and which can genuinely end it is the difference between a stressful week and a lost deposit.
Here is the honest version of what happens between acceptance and the keys, and where the real risk sits.
Am I Already Committed?
Probably more than you think.
In Massachusetts, a signed and accepted offer to purchase can be a binding contract on its own. The Supreme Judicial Court has held that the later purchase and sale agreement may be “merely a formality.” (McCarthy v. Tobin, 429 Mass. 84 (1999))
So walking away is not free. Your protection comes from the contingencies written into your contract, not from the fact that you have not yet closed.
What Happens Between Acceptance and Closing?
The sequence is fairly standard across Greater Boston:
- Home inspection, usually within the first week or so
- Purchase and sale agreement signed, often around ten to fourteen days after acceptance
- Mortgage application, appraisal, and loan commitment
- Title examination and municipal certificates
- Final walkthrough, then closing
Each stage has its own way of going wrong.
Which Problems Only Cause Delays?
Most of them. These are frustrating, not fatal:
Municipal certificate backlogs. Sellers of most Massachusetts homes must obtain smoke and carbon monoxide compliance certificates from the local fire department before transfer. (M.G.L. c. 148, § 26F; Department of Fire Services guide) In busy towns, appointments can take weeks. Certificates are typically valid for 60 days, so timing matters in both directions.
Missing mortgage discharges. An old loan the seller paid off years ago may never have been properly discharged on the record. It usually gets resolved, but tracking down a lender that has since merged or failed takes time.
Condominium paperwork. A Massachusetts condo sale requires a 6(d) certificate from the association confirming no unpaid common charges. Slow trustees delay closings regularly.
Lender document requests. Underwriters ask for updated statements and explanations late in the process. Annoying, rarely fatal.
Which Problems Actually End Deals?
Five, mostly.
Financing denial. The single most common cause. A loan commitment is conditional, and conditions can fail — a job change, a new credit inquiry, or a debt-to-income problem that surfaces late.
Appraisal shortfall. If the property appraises below the contract price, the lender lends against the lower number. Someone has to cover the gap or the price must be renegotiated. In competitive Greater Boston markets, this is not rare.
Serious title defects. An unresolved estate, a boundary dispute, an old lien, or a defective deed in the chain. Most are fixable. Some are not fixable quickly enough.
A failed septic system. Massachusetts requires a Title 5 inspection within two years before transfer for properties on septic, with limited exceptions. (310 CMR 15.000, MassDEP) A failure means a repair or full replacement, and that is a five-figure negotiation.
Inspection findings the parties cannot bridge. Structural problems, water intrusion, or an unpermitted addition can end a deal outright when neither side will absorb the cost.
A Newton Example
A buyer’s offer is accepted on a home held by the seller’s family for decades. The inspection is clean. Financing is approved.
Then the title examination finds a mortgage from 1998, paid off long ago, never discharged on the record. The original lender was acquired twice.
This is not a defect in the property. It is a defect in the paperwork. But the buyer’s lender will not fund without clear title, and the closing date is in nine days.
Resolved early, this is routine. Discovered late, it moves the closing.
The lesson is timing. Title work started promptly gives everyone room. Title work started the week of closing does not.
What About the Final Walkthrough?
It matters more than buyers expect.
The walkthrough confirms the property is in substantially the condition it was in at inspection, and that agreed repairs were completed. Problems found here — a basement that flooded, a removed appliance, damage from moving out — are negotiated at the closing table, often through an escrow holdback.
This is also when wire fraud risk peaks. Treat any last-minute change to wiring instructions as fraudulent until you confirm it by phone, using a number you already had.
Frequently Asked Questions
What is the most common reason a Massachusetts deal falls apart? Financing. A pre-approval is not a commitment, and even a commitment carries conditions. Buyers should avoid new credit, large deposits, and job changes between acceptance and closing, since lenders re-verify shortly before funding.
Can I get my deposit back if the deal collapses? Only if you terminate under a valid contingency and follow its notice requirements exactly. If you miss the deadline or walk away for another reason, a Massachusetts seller can generally retain the deposit as liquidated damages.
Can the seller back out after accepting my offer? Not easily. An accepted offer binds both sides. A buyer may be able to seek specific performance — a court order compelling the sale — which Massachusetts courts do grant in real estate cases.
How long does a typical Massachusetts closing take? Usually 30 to 60 days from accepted offer, driven mostly by the lender’s timeline. Cash purchases can close faster, limited mainly by how quickly title work is completed.
This article provides general information about Massachusetts law. It is not legal advice and does not create an attorney-client relationship. Every transaction differs.