Stigmatized Homes- Full Disclosure is So Important
First of all what is a “Stigmatized Home”? It is a home that something horrendous has occurred in. Whether it was a murder, a rape, a vicious assault, a serial killer lived there, any death (natural or not) or perhaps rumors of a ghost roaming the hallways for the past 50 years. But it is a home with a past and usually the neighbors know about the home’s history and in some cases the tour buses even drive by and talk about the tales. Perhaps it is not something bad but rather a celebrity lived here once. For example if Elvis Presley once owned the home but that was 60 years ago and now the hoards of tour buses drive by daily. Buses stop with tourist and talk over a loud speaker 12 hours a day and disturb your peaceful neighborhood. Would you want to know this before buying the house? Probably so!
Some states have laws on the books covering stigmatized homes and some do not. As real estate agents, it is our duty to disclose a stigmatized property or we might be brought up in a law suit later for failure to disclose. The laws in place has time limits on them like California has a 3 year limit but if I was selling a home and all the neighbors knew the horrible history of a house, I would make sure the seller disclosed it. My broker always told me, if the neighbors know, they will be sure to tell the buyer when they move it.
And what if the home is haunted? Remember the “Amityville Horror” house? Do we believe in such tales? Maybe or maybe not but the buyers should be able to make the decision before buying the home.
There is a case in Pennsylvania where there is no law regarding stigmatized properties and after the buyer purchased her home, she found out from the neighbors about a murder-suicide in the home the year before. She sued the agent and broker who failed to disclosure but lost in Superior Court. She appealed and the State appeals court affirmed the judge’s ruling. He attorney has now filed an action in the Supreme Court of Pennsylvania. As an attorney or broker do you want this going on for many years against your good name? Of course, in states where it is not mandated to disclose, it is the broker’s decision and an agent must follow the broker’s rules. Wheter you win or lose in court, it can be very stressful to be involved in a lawsuit for many years?
Frankly, you follow the golden rule. Do unto others as you would have them do unto you. If I was buying a home, I would sure want to know if it was stigmatized, wouldn’t you. It is rather ironic that a seller must disclose to a buyer a repaired light fixture or broken pipe but not disclose a murder-suicide.
In California, there are mandated full disclosure laws but not all states have these laws. Does your state have these laws? Do you think it is important to disclose stigmatized homes to potential buyers? Here is a link to read about 19 stigmatized homes across the nation. Click here.
Kristin Hamilton DRE #014092138 Keller Williams Realty -I sell real estate in Riverside and San Bernardino Counties commonly called the Inland Empire. I am a trained and experienced Short Sale agent. If you are looking for a professional and experienced agent, I am just a click away. Google me at Kristin Hamilton-Real Estate Agent. Homeowners and Buyers both will find my services top notch and successful. Call me to sell your home; both traditional and short sales.
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