Stigmatized Properties with Ghosts or Other

I gave thought to writing about how major disasters affect the price of houses,. Considered disasters such as war torn Syria, hurricane and tropical storms: Katrina? affecting loisanna, Harvey affecting the east coast, Earthquakes shaking Mexico, Tornadoes affecting the mid west, and Tsunamis affecting Japan and areas with coasts line facing the Indian Ocean. Yes, these subject will be covered on different pages.

I decided to initially cover subjects closer to home. A client ask me if a property was haunted. What do you think my obligation is or should be while attempting to sell a house that somebody claims is haunted? If it is my listing what is my obligation to the seller? What is my obligation to the protential buyer? As a real estate agent I certainly must inform a perspective buyer of any structural defects that I am aware of. Other than obvious defects, my opinion would be based upon my experience with other homes. What was not obvious to me I would only be dependant and aware of what information the current owner devolves. My studies were not in divination and my crystal ball is at the repair shop ( the mechanic says he is hunting for parts) and I am only occasionally clairvoyant, Therefore I will encourage interested parties to obtain a home inspection.

Old roofs, wet basements, lead-based paint or a cracked foundation septic, roof, termites and mold may be be obvious defects that would affect the price of a home. Those attributes are physical tangible characteristics. For me not to tell you about structural defects that I am aware of would be classified as an error or omission. Errors and omissions are forbidding within the profession. Such defects might allow a purchaser (a least the very least) to null the contract. What about hidden features? Such as an occasional ghost?

An important issue for many. Would the history of a home influence your purchasing decision? What if somebody died in the home? It was common to desire to die at home in bed instead of some foreign battle field. Of course that was then. Today most people go to the hospital, hospice, some the highway in comparison of the days of yore, in comparison few died naturally at home. Death being a natural part of life does that affect you purchasing decision?

Let us add a layer of complexity. The house that you are looking at unbeknownst to you Charles Mason, Jeffery Dahmer did their nasty deeds or Aldof Hitler, was the last resident would that make a difference ? Houses such as these are known as stigmatized. In very rare cases the property actually increased in value. Such was the case of Gianni Versace mansion. In 1997 Gianni a famous fashion designer was gunned down outside his Miami mansion. Three years later, the mansion sold for a record $19 million. However that is rare. According to studies as we migrate from the cities the amount that the selling price is drastically depressed.

A house where such an unfortunate event took place takes longer to sell and sells with a bargain price. There was a condominium in the desirable Brentwood district of Los Angeles, The location where Nicole Brown Simpson and Ron Goldman murder took place. The property took greater than 2 years to sell, and had to be discounted at the tune of $200,000. Studies have indicated that events such as this affects the selling prices of entire neighborhoods.

Study by UTS This might not be surprising if we consider that crime rate affect sales. This returns us to the question must a Realtor tell you?

New Jersey's court system: Realtor's duties N.J.A.C.11:5-6. The regulation requires the disclosure of material information of the physical condition of the property either known to or discoverable visual inspection and after reasonable inquiry of the seller. See N.J.A.C. 11:5-6(b). However, this contains an exclusion for psychological impairments. Id. (Information about social conditions and psychological impairments as defined in (N.J.A.C. 11:5-6(d)) is not considered to be information which concerns the physical condition of a property.). Psychological impairments are defined to include, among other things, murder and suicide. See N.J.A.C. 11:5-6(d). That said, the ruling states that if asked about psychological impairments, there is a duty to disclose. .See N.J.A.C. 11:5-6(d)(3) (Upon receipt of an inquiry from a prospective purchaser or tenant about whether a particular property may be affected by a . . . psychological impairment, licensees shall provide whatever information they know about the . . . psychological impairments that might affect the property.). According to this ruling the purchaser must ask! In fact the real estate agent must be careful of what to reveal. For the agent must be careful not to steer for it might be considered prejudicial unless you ask a direct question a potential purchaser might just receive a suggestion of where to obtain information or perhaps a list.. Even if you ask it may be illegal to tell you if the last person died of a particular disease. California provides a three year limitation of having to disclose. Massachusetts has stated: No cause of action shall arise or be maintained against a seller or lessor of real property or a real estate broker or salesman, by statute or at common law, for failure to disclose to a buyer or tenant that the real property is or was psychologically impacted. It is clear that nationally the answer is not clear. The legal obligation varies from state to state.

I started this article exploring obligations of notification of ghosts. Does the answer depend upon the ghost beliefs of the agent? Or what the buyer believes?