Happy Halloween -- This is a post I did last Halloween --and I am reposting it because the question continues to HAUNT buyers and sellers and I wanted to get an update on what is happening in your state.
I am off to the real estate commission today to work on our consumer disclosure forms and I'll be checking in!
Riverfront Victorian for Sale
In 1991, the Stambovskys put in an offer on an old house in the Village of Nyack, New York. The purchase price was $650,000 and they made a down payment of $32,500. A couple of months after the contract was signed, Mr. Stambovsky was horrified when he learned that the home he was about to purchase was known in the community to be HAUNTED!
Apparently, the phantasmal reputation of the house was commonly known in the Village of Nyack.
The Seller had publicized the ‘hauntings" to Readers Digest and the local media. In 1989, the house was included in a five-home walking tour of Nyack and described in a November 27th newspaper article as "a riverfront Victorian (with ghost)." However, the Stambovskys were not from the area and did not know about the poltergeists.
The Stambovskys went to court and alleged that the seller and the seller's agent should have disclosed the presence of poltergeists. They wanted out of the contract and alleged that the Sellers should have disclosed the presence of ghosts.
The trial court said no way! However, when the case was appealed, the Appellate court ruled that the Stambovskys could get out of the contract because, "As a matter of law, the House is Haunted". The court went on to state:
"While I agree with the Supreme Court that the real estate broker, as agent for the seller, is under no duty to disclose to a potential buyer the phantasmal reputation of the premises and that, in his pursuit of a legal remedy for fraudulent misrepresentations against the seller, plaintiff hasn't a ghost of a chance, I am nevertheless moved by the spirit of equity to allow the buyer to seek rescission of the contract of sale and recovery of his down payment."
The court reasoned that because the seller had promoted the hauntings to several publications, she could not now deny the existence of ghosts. Therefore, the Appellate court concluded that under the equitable principals of the law, the Stambovskys were entitled to a refund of their down payment.
[This was the Amityville house- Stambovsky v. Ackley (169 A.D.2d 254, 572 N.Y.S.2d 72). It was decided in 1991 by the New York Appellate Court.
When I first moved to New Hampshire, I was covering for my broker and I was showing an older home in Atkinson, New Hampshire. It was a charming home -- All of a sudden, we heard a loud noise --the wind was whistling and a door slammed shut.
We all were trying to act like it wasn't any big deal. Then the lights started to flicker. I didn't know what to think - and up until that time, I hadn't thought about whether I REALLY believed in ghosts. My clients were very nervous.
Then to my surprise, the Real estate agent, said "Well, I guess that I should tell you that this house may have a ghost and the seller wanted me to share this with you." He went on to explain that a young child had died from a serious illness many years before, and the child could be heard from time to time. Some had speculated that the child's soul was "stuck" in the house.
The clients were not familiar with "haunted houses" and they decided they would buy a contemporary instead!
There is also a "haunted" restaurant in Nashua, New Hampshire. The Country Tavern was build in 1741. It is a lovely restored farmhouse and is the home of a friendly ghost known as ELIZABETH.
The "haunted restaurant has been featured on "Hard Copy and "unsolved mysteries". I haven't met Elizabeth, but some staff members have met her. They say she is very friendly and likes to play pranks on the staff!
You may enjoy reading my recent post about the Country Tavern and Elizabeth who is expected to make an appearance tonight!
Apparently, there are several "haunted homes" and places in New Hampshire!
A Haunting Question: What is the DUTY TO DISCLOSE IN YOUR STATE?
- Does the seller's agent have a duty to disclose the phantasmal reputation of the premises?
- Does the seller have a duty to disclose the presence of ghosts?
- Does the buyer's agent have a duty to disclose the presence of ghosts?
What is the duty to disclose stigmatized property in your state?
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Disclaimer: Information herein may come from various sources, some of which may not be reliable and may change without any notice. Joan Whitebook does not guarantee or is any way responsible for the accuracy of the information in this blog and information provided is without warranties of any kind, either express or implied. Information on this blog represents the opinions and ideas of the author; comments by others may not express the views of the author.
Copyright © 2008 By Joan Whitebook, all rights reserved.*Copyrights "Got Ghosts? To Disclose or Not Disclose"
Please consult your State laws and legal counsel - not intended to be legal advice.
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