Start Here: How Buying a Home on Cape Cod Works

Pick your path

The steps below apply to everyone. If one of these describes you, there's a deeper guide waiting.

The big picture

Buying in Massachusetts follows a two-contract rhythm that confuses a lot of people coming from other states. First you sign a short Offer to Purchase. Once it's accepted, you do your inspections, and then the attorneys negotiate a longer, more detailed Purchase and Sale Agreement (P&S). Your lender works toward a mortgage commitment, and an attorney handles the title work and closing. Massachusetts is an "attorney state" for real estate closings, so expect a lawyer to be involved on the lender's side, and it's common for buyers and sellers to hire their own as well.

On the Cape, layer in a few extra items: a Title 5 septic inspection on most homes (many Cape neighborhoods aren't sewered), private well testing where there's no town water, flood zone checks near the water, and a market that shifts noticeably between summer and winter.

Step by step

1. Get pre-approved (not just prequalified)

   A prequalification is usually a quick estimate based on what you tell a lender. A pre-approval means the lender has actually pulled credit and reviewed documents such as pay stubs, tax returns and bank statements. Cape sellers and listing agents generally expect a pre-approval letter with any offer, and a strong one can matter as much as price when there are competing offers.

   Talk with a lender about loan types (conventional, FHA, VA, state programs through MassHousing or the MHP ONE Mortgage), how much cash you'll need for down payment and closing costs, and whether the property type you want (condo, second home, multi-family, home with an accessory unit) fits the loan. The CFPB's Buying a House tools are a good neutral starting point.

2. Sign a written buyer agreement with your agent

   Since August 17, 2024, under the National Association of REALTORS® settlement rules, an agent who is a REALTOR® working with you as a buyer needs a written buyer agreement signed before touring a home together, whether in person or virtually. Walking into an open house on your own, or just asking an agent about their services, doesn't require one.

   The agreement has to say what the agent will do for you and exactly how they'll be paid. The amount must be specific (a flat fee, a percentage, an hourly rate, or $0), not open-ended. Buyer broker compensation is not set by law and is negotiable, as are the agreement's length and scope. A seller may still offer to cover some or all of your agent's fee, and that can be part of your offer negotiation. NAR's consumer guide to written buyer agreements explains the basics.

   Also in Massachusetts

   At your first meeting about a specific property, a Massachusetts licensee is required to give you a state disclosure form explaining the different types of agency relationships (seller's agent, buyer's agent, designated agent, dual agent, facilitator). It isn't a contract; it just explains who represents whom. Questions about license rules go to the Board of Registration of Real Estate Brokers and Salespersons.

3. Tour homes and do your homework

   Before you fall in love with a house, check the basics that drive cost on the Cape: Is it on town sewer or a septic system? Town water or a private well? Is any part of it in a FEMA flood zone? Is the road public or private? Is it a condo or in a homeowners' association? Your agent can pull the listing disclosures, the town assessor card, and permit history. See the Resource Library for the official lookup tools, and the town guides for each of the 15 towns.

4. Make an offer

   Most Massachusetts offers are written on a standard Offer to Purchase form. It states the price, your financing, your deposit, the inspection contingency period, the deadline to sign a P&S, and the target closing date. Once both sides sign it, it is a binding contract in Massachusetts, so read it carefully and ask an attorney if anything is unclear.

   Deposits: it's customary to give a modest deposit with the offer and a larger additional deposit when the P&S is signed, with the total often landing somewhere around 5% of the price. There's no fixed legal amount; it's negotiated. Deposits are typically held in escrow by the listing brokerage or an attorney. Your contingencies (inspection, financing, and so on) are what protect your deposit if something goes wrong, so pay attention to their deadlines.

5. Home inspection and contingencies

   Your offer will typically give you a set number of days to complete a home inspection by a licensed Massachusetts home inspector (you can check a license through the Board of Registration of Home Inspectors; see the state's home inspector fact sheet). On the Cape, buyers often add specialized checks: radon, wood-destroying insects, chimney, roof, and a review of any septic and well paperwork. If the inspection turns up problems, you can typically renegotiate, ask for repairs or a credit, or withdraw within the contingency window.

   The septic, well, smoke/CO and lead items each have their own rules, covered in the next section.

Inspections & certificates that are different here

Title 5 septic inspection

Massachusetts' septic code is called Title 5 (310 CMR 15.000). For most sales of a property with a septic system, a Title 5 inspection by a MassDEP-approved inspector is required. Under MassDEP's rules:

• The owner (seller) is responsible for having the inspection done, unless buyer and seller agree in writing to shift that responsibility before title transfers.
• The inspection is generally done within 2 years before the sale, or 3 years if the system has been pumped every year and there are records.
• If weather prevents an inspection before closing, it can be done up to 6 months after the sale, as long as the seller notifies the buyer in writing.
• The seller must give the buyer a copy of the inspection report.
• A system that fails has to be repaired or replaced, which can cost many thousands of dollars. Who pays is a negotiation, and it's often the biggest single issue in a Cape deal.

Some transfers are exempt (for example between spouses, or where there's a binding agreement to connect to sewer). Details are in MassDEP's guide to buying or selling property with a septic system. Cape Cod also has nitrogen rules that can require upgraded "I/A" systems in some watersheds, and several towns are building sewers. Read our Septic, Sewer & Nitrogen guide before you buy.

Private well water testing

Parts of several Cape towns rely on private wells. Massachusetts does not require well testing at sale, but MassDEP recommends that buyers test before purchase, and your lender or the local Board of Health may require it. MassDEP's private well testing guide lists a recommended initial panel that includes bacteria, nitrate/nitrite, a standard chemical analysis (including lead, arsenic, sodium and others), radon, volatile organic compounds and PFAS, using a state-certified lab. Build time for well results into your inspection contingency. More on Cape water in our Water & Flood guide.

Smoke and carbon monoxide certificate

Before a home changes hands, the seller arranges an inspection by the local fire department, which issues a Certificate of Compliance for smoke and CO alarms. The requirements depend on when the house was built or last permitted, and the certificate is typically needed at closing. Fees vary by town. See the state's consumer guide to smoke detectors when selling a home.

Lead paint (homes built before 1978)

A lot of Cape housing predates 1978. For those homes, federal and Massachusetts law require the seller and agents to give the buyer the state's lead paint notification package and complete a Property Transfer Lead Paint Notification certification before the buyer is bound by a purchase contract. The buyer has the opportunity to have a lead inspection done within 10 days (or another period written into the contract), and may waive it.

Massachusetts' Lead Law goes further than federal law: if a child under 6 lives in a pre-1978 home, the owner is responsible for having it deleaded or brought under interim control. Sellers can't refuse to sell to buyers because they have young children or ask about lead. Plan ahead if this applies to you, and ask about any existing Letter of Compliance. Summary from the Board of Real Estate: Lead paint in residential sales and rentals.

From the P&S to closing day

1. Purchase and Sale Agreement

   After inspections, the seller's attorney usually drafts the P&S and your attorney reviews and negotiates it. This is where the details live: final price after any inspection credits, the mortgage contingency date, what happens if the Title 5 report fails, what stays with the house, and the closing date. You'll typically pay the additional deposit at signing. Hiring your own real estate attorney is strongly recommended; the lender's closing attorney represents the lender.

2. Mortgage application, appraisal and commitment

   Your lender orders an appraisal. If it comes in below the price, you may need to renegotiate or bring more cash. When underwriting is satisfied, the lender issues a mortgage commitment. Your P&S will have a commitment deadline; if you can't get financing by then, the mortgage contingency is what lets you exit with your deposit, so watch that date closely and get extensions in writing. Federal rules require you to receive a Closing Disclosure at least three business days before closing; the CFPB's Home Loan Toolkit walks through it.

3. Homeowners and flood insurance

   Your lender will require homeowners insurance before closing. On the Cape, start shopping early: coastal exposure can narrow your options, and some owners end up with the state's FAIR Plan (MPIUA). Standard homeowners policies don't cover flood. If the home is in a FEMA high-risk flood zone and you have a federally backed mortgage, flood insurance will be required. Get quotes during your inspection period, since premiums can change the math. See our Water & Flood guide and the Division of Insurance's overview of insurance in a residential sale.

4. Title exam and title insurance

   The closing attorney searches the records at the Barnstable County Registry of Deeds to confirm the seller can convey clear title. Your lender will require a lender's title policy; an owner's title policy is optional and protects your own equity against covered title defects. Ask your attorney what an owner's policy covers and costs for your property.

5. Final walk-through

   Usually within a day or so of closing, you walk the property to confirm it's in the agreed condition, agreed repairs are done, included items are there, and the house is empty (unless agreed otherwise). In winter, check that the heat is on and nothing has frozen.

6. Closing and recording

   You sign the loan documents, funds are wired, and the seller signs the deed. Ownership is official once the deed is recorded at the Registry of Deeds, which the closing attorney handles. Never wire money based on emailed instructions without calling the attorney's office at a number you've verified independently; wire fraud targets real estate closings.

After closing

Massachusetts Declaration of Homestead

If the home will be your principal residence, Massachusetts law gives you an automatic homestead protection of $125,000 of equity against certain creditors. Recording a Declaration of Homestead at the Registry of Deeds raises that protection; under the 2024 Affordable Homes Act, the declared amount is now up to $1,000,000, per the Barnstable County Registry of Deeds homestead page. Many closing attorneys prepare it for you at closing. There's a small recording fee. Homestead protection doesn't stop a mortgage foreclosure or tax collection; ask your attorney how it applies to you.

Other first-month items

• Ask the town assessor about any residential exemption or other exemptions you may qualify for (deadlines apply). Veterans: see our VA guide.
• Sign up for the Registry's title fraud and consumer notification information.
• Register for town services you'll need: transfer station/dump sticker, beach parking sticker, and water/sewer billing where applicable.
• Schedule septic pumping or I/A system maintenance if you're on septic.

Taxes and fees at closing

Deed excise tax (tax stamps)

Massachusetts charges a deed excise tax when property is sold, customarily paid by the seller. In most of Massachusetts the rate works out to $4.56 per $1,000 of price. Barnstable County is different: it adds a county excise on top of the state portion, for a total of $6.48 per $1,000 ($3.42 state + $3.06 county), per the Barnstable County Registry of Deeds fee schedule. The price is rounded up to the next $500 before calculating. Example: on a $700,000 sale, 700 × $6.48 = $4,536.

Property tax

Property tax rates are set by each town every fiscal year, and they vary widely across the Cape. The state's Division of Local Services publishes every town's rate, e.g. FY2026 tax levies, assessed values and tax rates. Several Cape towns have a residential exemption that lowers the bill for year-round residents, which means a second-home owner may pay more than the full-time owner next door. Check with the town assessor. Your closing will typically include a prorated property tax adjustment between buyer and seller.

Typical buyer closing costs

Expect lender fees, the appraisal, attorney fees, title insurance, recording fees, prepaid interest, insurance premiums and escrow deposits for taxes and insurance. Your lender's Loan Estimate gives you real numbers early; compare it to your Closing Disclosure.

Typical timeline

Every deal is different, and these are common ranges, not rules. Your Offer and P&S set the actual dates.

Cape-specific gotchas for off-Cape buyers

Frequently asked questions