Understanding Disclosure of Stigmatized Property
While working as a Massachusetts Realtor over the last thirty-six years, one of the questions that always seems to come up is whether or not a Realtor is obligated to disclose a murder, suicide, haunting, or another type of paranormal activity that may have occurred in a home or other Real Estate.
Stigmatized property disclosure is essential to understand as a real estate agent, buyer, or seller.
Wikipedia defines a haunted house as a home or other Real Estate often perceived as being inhabited by disembodied spirits of the deceased who may have been former residents or were familiar with the property.
Supernatural activity inside homes is said to be mainly associated with violent or tragic events in the building’s past, such as murder, accidental death, or suicide.
Disclosing Murder, Suicide, and Haunted Homes in Massachusetts
This is one of those topics that I would be willing to bet at least half the Realtors polled would get the answer wrong. I am sure most Real Estate agents would say that they must disclose a haunted house or if someone died on a property by murder or suicide. They would be dead wrong:)
One of my beliefs is that every buyer should be entitled to know anything that could materially affect a home’s value or the ability to sell in the future. This, in fact, is one of the articles in the Real Estate code of ethics.
In Massachusetts, a Realtor is not required to disclose these events in a property. Apparently, lawmakers do not feel these kinds of events are worthy of Real Estate disclosure. I suppose in the case of a haunted home; it would be much harder to prove the actual existence of ghosts.
Many states require full disclosure of violent crimes such as murder and any other event that may stigmatize a property before it is sold. That is not the case in Massachusetts!
The Specific General Law on Stigmatized Property Disclosure In Massachusetts
Below is the excerpt from the…