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Got Ghosts? To Disclose or Not Disclose

By
Real Estate Agent with BHG The Masiello Group

 

     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

ghost

      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?

________

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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Monika McGillicuddy
Berkshire Hathaway HomeServices Verani Realty - Hampstead, NH
Southern NH & the Seacoast Area

Do you mean you haven't seen her??? Or has she really shown up???

Oct 31, 2008 01:18 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Joan, I remember hearing about the case in Nyack and the fact that the new owners won their case.  I know it doesn't have to be disclosed--but believe it should be.  As a matter of fact, some people actually WANT to purchase haunted homes.  Mary's site, HauntedRealEstate and others I've read indicate some people want them!  Why, I'm not sure, I wouldn't :)

Oct 31, 2008 01:30 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Carole~    I think it is better to disclose than not disclose --  I guess it depends if there is a friendly ghost or not!  I'm still waiting to see if Elizabeth appears.  I'm getting a little nervous now!

Oct 31, 2008 02:17 PM
Not a real person
San Diego, CA

When in doubt, disclose. I'm one of those who would like to buy a haunted house because I'd make it into a tourist attraction. Money, money, money. LOL

Oct 31, 2008 05:38 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I would disclose it . I would not buy a haunted house and I follow the golden rule.

Oct 31, 2008 10:48 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Russel I think it could be a good investment for the right person -- I'll let you know if we have any haunted hoses for sale (lol).

 

Gita  I am with you -- I would disclose a haunted house -- I think my old aparment in
San Francisco was haunted.  Every so often, for not reason, things would come crashing down!  I guess I could live in a haunted house so long as the ghosts were not too scary.mm

Nov 01, 2008 12:13 AM
Brenda Carus
Century 21 Zwygart Real Estate - Monroe, WI

In WI, legally we do not need to disclose the idea that there may be spirits on the property or the fact that the property the site of a violent crime.  However, it is highly recommended that full disclosure is given because it could be considered a material adverse fact to some people, and the courts could rule that it should have been disclosed if there were a case of it going to court.  I would encourage my sellers to disclose. 

My husband has a property listed right now that was a funeral home complete with embalming room and a next door house that had the crematorium in the garage (he had it removed last spring).  We disclose with the permission of the seller.

Nov 01, 2008 03:42 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Brenda~  Thanks for sharing this information.  I think you are your husband are making the correct choice (with the seller's permission) to disclose.  In most cases, this is the best way to go.

Nov 01, 2008 09:53 AM
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC

Hi Joan,
I remember this post from last year.  My opinion, yes should disclose.

Nov 01, 2008 01:28 PM
Don Fabrizio-Garcia
Fab Real Estate - Danbury, CT
Owner/Broker/Trainer - Fab Real Estate

Here in Connecticut, we do not need to disclose if the home is believed to be haunted, or if there was a death or a murder in the house.  The state has decided that these issues are irrelevant to value.

Buyer can ask these questions, in writing, but the sellers are not required to respond.

Nov 01, 2008 01:51 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Hi Cynthia~  This question comes up often and I thought it would be good to discuss it again since it is a hot area for litigation.  I agree with you, it is better to disclose.

Don ~  That is very interesting.  In New Hampshire, it is my understanding that murder and death need not be disclosed by the seller, but if the buyer specifically asks, then the seller must disclosed.  It is not as clear with regard to ghosts -- maybe that would be considered stigmatized property -- interesting question.  Thanks for sharing what is going on in connecticut.

Nov 02, 2008 12:15 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

My house had a ghost, but some of my airy fairy friends did some chanting and they sprinkled holy water and shooed her away! 

I'm not sure what the law says, but in this town, if you've got a ghost and don't want to get sued in this town, disclose it.  Cute post!

Nov 02, 2008 01:48 PM
Marianne Snygg
ERA Herman Group Real Estate - Monument, CO
ABR, ASP, GRI, SFR

Out here in the West, we don't have too many really old buildings. Most of ours are turn of the century Victorians, in our downtown area. They're all too new to be haunted. However, if there was a death in a home, we are NOT required to disclose. Some people will voluntarily disclose, but they don't have to. I think it's a nice thing to do, IF your seller allows you to. We do have to disclose any structural damages that we KNOW about, or the fact that it was a Meth lab...if we KNOW it.

On a different note, what I find amazing are people that want to buy a home where no one has ever had their shoes on inside! That's a really tough one for me to deal with.

Nov 02, 2008 02:31 PM
Kurt Duffeck
ANEW Real Estate Crew at Keller Williams Realty - Austin, TX
Anew Real Estate Crew - Start Right. Start ANEW.

Hi Joan!

I'd disclose this kind of stuff every time. Especially if I'm representing a ghostbuster! 

 

Nov 06, 2008 03:16 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Joan - I've actually wondered how much a resident ghost increases the value of some Bed and Breakfast establishments and Inns.  Afterall, several in our area seem to have "acquired" one, whether real, imagined, or for market advantage.

Nov 06, 2008 03:49 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Kurt~  Your comment really got me laughing.  I wonder how many ghostbusters I have had as client, who didn't disclose that fact to me! 

Myrl ~  That is a great question.  I am going to try to remember to ask one of my appaiser collegues what her opinion is on that question! 

Nov 07, 2008 01:47 AM
Samantha Nichols
ERA Belsito and Associates - Plymouth, MA
Massachusetts Real Estate Specialist

My parents' house in upstate NY is haunted, has been since I was in high school. It was always interesting, that's for sure. While it wasn't disclosed when they bought the house 20 years ago, none of us had problems with the ghost so the lack of disclosure was never an issue. It just didnt bother us...except when he was running around slamming doors or knocking things over!

Nov 08, 2008 01:51 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Glad to hear that your resident ghost was pretty friendly.  Did you ever find out anything about the ghost or what had happened in that house before your parent bought it?  It is fascinating to learn the history of these properties.

Nov 08, 2008 12:27 PM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

We don't have to disclose in our state, but in some cases it may make the home more valuable as some buyers want a ghost. We have a couple homes around the Portland area that are known for them and those homes even when not for sale have a list of buyers waiting for it to be for sale.

Todd Clark, Helping Families Home - www.IFoundYourNewHome.com

Nov 14, 2008 11:16 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Todd~  It is interesting -- some people love ghosts and others just don't want anything to do with them.  I think disclosure is a good idea -

Nov 15, 2008 06:51 AM