To Tell or Not To Tell

So I have a contract in on a short sale in my county. My client likes two houses on this particular street the one we put the contract in on and the one right next door. They both are nice. I received a call today from the firm handling the short sale for the home owner(we have two realtors on their side, the bank and now the short sale company plus me the closing table will be packed) and they informed that there are a few issues with the house one being the septic but the other being that a young high school girl was murdered and dismembered in the house! When they lead off with the septic needing to be replaced and then say the BIG issue is next youy know you have some problems. So my client is negotiating. It brings up an interesting point should we be forced as realtors to disclose material facts like this in a listing? It does harm the home sellor if we do but it will protect people from buying a murder/crime scene home. It will also protect us from any and all issues with the house sale later. If the deal goes through we will be donating the commision to the scholarship that has been created in the young girls name.