Stigmatization: Psychological Defects of Properties
This is a tough one I am not sure if it should be disclosed it would be another slap to the victims family should someone choose not to buy a property because of a murder.
Yet, if the buyer asks the question and we know that a murder has occured then it is only right to disclose that information. Only some people are going to allow this to have an affect on the purchase. But if we present the fact in a disclosure it then becomes more important doesn't it? I would like to read more views on this topic.
Here’s another tickler on something we all know about but may not encounter on a routine basis: Stigmatized Properties.
Just a few highlights to jog those atrophied memories.
A property that has a "psychological defect" is called a stigmatized property. Examples would be properties on which a murder might have occurred or where there is evidence of paranormal activity. A stigmatization is an occurrence that has not manifested itself in a material defect to the property itself.
South Carolina law 40 - 57 - 180 states "no cause of action may arise against an owner of real estate or a licensed real estate agent of any party to a transaction for failure to disclose in a transaction:
1. that the subject real estate is or was occupied by an individual who was infected with a virus or any other disease which has been determined by medical evidence as being highly unlikely to be transmitted through occupancy of a dwelling place either presently or previously occupied by the infected individual
2. That the death of an occupant of a property has occurred or the manner of the death."
“Nothing in the subsection of that law precludes an action against an owner of real estate or agent of the owner who makes intentional misrepresentations in response to direct inquiry from a buyer or prospective buyer with regard to psychological impacts, off-site conditions or stigmas associated with real estate.”
In other words, the law offers no protection against someone bringing suit against the owner and/or the owner’s agent, should they intentionally fail to disclose the existence of, or misrepresent when confronted with a direct inquiry of 1) psychological impacts, 2) off-site conditions or 3) stigmas associated with real estate. But by that same token, we, as agents, can save ourselves a lot of heartache by simply disclosing the information to begin with. Why would we NOT???
In summary, a stigmatized property is one with a psychological defect that has not manifested into a material defect to the property. A licensee is not required to disclose the existence of a stigmatization, but SHOULD disclose if in response to a direct inquiry by the consumer.
Quite frankly, I find it outrageous that we are not required to disclose the fact that a murder occurred in a subject property or that there has been paranormal activity reported for two decases, etc., if we are directly asked. As for me and my team, we do. Period. But we are not required to. This just seems inappropriate to me. What about you? Is the law the same in your state?
Sheila Newton
Sheila Newton Team, Inc
RE/MAX Foothills Real Estate
2508 M North Main St.
Anderson, SC 29621
864-328-2283 (direct)
864-225-2424 (fax)
www.SheilaNewtonTeam.comSheilaNewtonTeam Virtual Tours of Listings
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