Most people have a property checked out by a Home Inspector to determine if there is any material or physical damage present before they decide to buy, But real estate may also suffer from non-physical or emotional defects, these are known as “stigmatized properties.”
When an event occurs on a property that could deter potential buyers from purchasing, it is considered stigmatized. Such events usually involve violent crimes such as murder, rape and suicide, but can also include cases of severe, terminal illness and paranormal activity.
Currently in 31 states if a real or rumored event, including paranormal activity, occurred that did not physically affect the property but could adversely affect the desirability of that property, the event MUST be disclosed. In Oregon sellers and agents are not required to disclose information to prospective buyers on stigmatized properties unless the premises were once used in the manufacture of illegal narcotics. In states where disclosure of stigmatized property is required, the failure to do so can result in lawsuits.
LAW: Stigmatized Property http://www.realtor.org/archives/lawdec03
New York, 1989: Stambovsky v. Ackley:
http://activerain.com/blogsview/1312005/a-haunting-question-got-ghosts-
OPHIR has added offering Paranormal Investigations and background/historical research on properties and homes to it’s list of services. The Inspection will be done over a series of 3 investigations in which we will employ the most scientific techniques available to us using modern electronic equipment as well as an extensive background search into the properties history. The customer will be provided an information packet and a full report of our findings, including copies of any anomalous photos, audio or video obtained at the site during the investigation period.
We respect your full right to privacy, we will not disclose your personal information nor post the address of the location on our site without expressed and written permission from all parties involved.
Variance in State Law
More than half of the states in the country continue to decide all issues relating to disclosure of stigmatizing information under the common law. Case law on psychologically impacted property is sparse.
Several state legislatures, however, have decided to remove this element of uncertainty from home sales. At least 21 states have adopted statutes speaking to the issue in one way or another.
Florida statute provides that no buyer can bring a law suit to complain about the seller’s or broker’s failure to disclose that a property was the site of a murder, suicide or death. It also provides that no action can be brought because of a failure to disclose that an occupant was infected with AIDS or HIV.
The New York court that presided over the Stambovsky vs. Ackley case found that the house’s reputation as being haunted dramatically impacted its market value. Nonetheless, Florida statute (and most of the other state statutory solutions to the problem) relieves sellers of any duty to disclose these stigmatizing facts.
At the other extreme of the statutory spectrum is South Dakota, which requires certain non-physical disclosures. Specifically, the seller must disclose whether, in the 12 months preceding the disclosure statement, there was committed on the property a homicide or any other felony against a person or the property.
Georgia’s statute exemplifies a third approach. While the statute protects the non-disclosure of stigmatizing information, it also provides an affirmative duty to respond honestly to questions relating to this same information. This contrasts starkly with Florida and many other states that immunize non-disclosure, even when the seller or broker is asked.
Under the Georgia model, the purchaser may - simply by asking - render stigmatizing information material.
Relevant Links
http://www.legalzoom.com/everyday-law/home-leisure/ghoul-disclosure-must-home-sellers
http://www.windermerespokane.com/blog/2007/10/25/since-it-is-close-to-halloween/
http://socyberty.com/paranormal/one-of-the-most-haunted-houses-in-the-uk/
http://tucsoncitizen.com/paranormal/2009/11/22/haunted-rentals-advertising-a-ghostly-roommate/
http://en.wikipedia.org/wiki/Stigmatized_property
http://www.lawnix.com/cases/stambovsky-ackley.html
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