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". And of course depending upon the circumstances, it could increase the value.
Material Facts are commonly referred to as anything that would affect the buyer’s decision to purchase or the price and terms the buyer offers. In other words, if you have knowledge about a defect, it should be disclosed. The following are a few examples; structural defects and other statements regarding the condition of a property, the amount of property taxes paid and the square footage of a home.
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? Currently, about half the states have disclosure laws. For homebuyers in the rest of the states, its buyer bewares.
As always you need to consult with the applicable governing authority or your own real estate agent regarding any legal questions that you may have.
We are not here to address any legal issues but come on, there are a whole host of questions that are begging to be asked and answered.
When did you ever think that the term “Paranormal” would be included in the same line up with murder, suicide, sexual deviation, cult activity, famous adulteries, divorces, misfortune, violent crimes, and AIDS?
The above represents crimes, decisions and medical conditions that are “physical” in nature with real laws on the books addressing them whereas the Paranormal is metaphysical.
It is a pretty interesting concept that for something that supposedly, “does not exist” that it can directly effect the very real, “cold hard cash” of a real estate transaction?
With the concern on the direct effect on evaluation, maybe ghosts do exist?
Food for thought:
Suppose that you bought a house that your real estate agent was made aware of that it was reported to be haunted, but, did not disclose it to you because they were in compliance with their disclosure law that did not require or obligate them to disclose it to you. Once you owned the house, you then found out about the history. Suppose that because of its history you felt uncomfortable living there and wanted out. If the real estate agent was in compliance with the law and you had no legal recourse, what would you do? If you then decided to sell your home, would you then disclose to any prospective buyers that the house was haunted knowing that it could jeopardize a prospective sale, reduce the purchase price or even prevent you from selling your house?
via CantonRep.com
It is significant that you familiarize yourself with these conditions as they are applied quite frequently during a paranormal investigation.
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