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Stigmatized Properties - Do You Disclose?
To Disclose.....or.....Not to Disclose, That Is The Questions!
Anita Clark presented an excellent post regarding disclosing things things as murder, suicide, sexual deviation......and the list goes on!
Due to recent discusssion I have heard recently regarding this issue i decided to re-blog.  Many Realtors are so fearful of losing a sale they do not want to disclose questionable things.
My thought...If In Doubt....You Must Disclose!   Good job, Anita!
What do murder, suicide, paranormal activity, sexual deviation, cult activity, famous adulteries and divorces, misfortune, violent crimes, and AIDS (see note), have in common?  
All have the potential to ruin a real estate deal because of the public perception associated with being a stigmatized property.  According to the National Association of Realtors®, stigmatized properties "are homes where a real or rumored event occurred that didn't physically affect the property but could adversely impact its desirability". 
Since Caveat Emptor (let the buyer beware) has been the generally accepted property law doctrine for buying pre-existing homes in the U.S. (exceptions include seller hiding material defects or making misrepresentations), does the seller have to disclose the non-material stigma?  Is the agent/broker bound to disclose this information to prospective buyers?  The answer to both is murky clear...Maybe, based on ... more

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