A few weeks ago, I was contacted about representing a family who had recently lost their loved one to suicide. The death occurred in the home, and as you can imagine, the family is extremely upset. Currently they are taking steps to clean the room in which the death occurred, removing drywall, painting, etc. Thankfully, the insurance company is covering the cost to repair.
We do not know if the home will have to go through probate yet, so the listing of the home is on hold.
My question is, should the suicide be disclosed to any buyers that show interest in the home, once it is listed? Each state has different disclosure laws. Here is how Minnesota addresses the issue:
- the law says that all material facts pertaining to the physical condition of the home must be disclosed
- the law says that it is not a material fact that some with HIV or AIDS lived there, was the site of a suicide, accidental death, natural death, or perceived paranormal activity.
- HOWEVER, the law also says that if a real estate licensee is aware of any material fact about the property that might adversely affect the use or enjoyment of the home, then those facts must be disclosed to prospective buyers
Can you see the Catch 22 I am in by state law.
I don't have to disclose the suicide because it is not a material fact, but I have to disclose anything that might affect the enjoyment of the home. Putting myself in the buyer's shoes, I don't think it would bother me if a suicide occurred in the home, but it could affect someone's enjoyment of the home if they became haunted by the fact someone died in a specific room.
The choice to not disclose the death could be "overturned" by any neighbors who feel it is their obligation to inform prospects about what happened. Stories can even be embellished and the truth lost by those who do not know the facts.
I am sure most buyers would like to know the history of the home, no matter how hard a subject it is.
What would you do in this case? Or, have any of you been put in this situation and how did you address the issue? Any helpful advice is greatly appreciated!
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