A property that is rumored to have paranormal activity certainly may make someone think twice about buying it. And properties where a murder or other violent crime was committed make a psychological impact on many buyers. For these reasons, sellers of such properties obviously want to avoid stigmatization so their homes don’t become unsellable. But what does the law say about a duty to disclose such facts?
Some states are clearer than others on what must be disclosed to buyers in order to avoid fraud. In Ohio, however, law surrounding stigmatized property is a gray area. Ohio’s Residential Property Disclosure form requires sellers to disclose to possible buyer’s information pertaining to the visible (patent) and non-visible (latent) condition of the home or other material facts (such as existing underground storage tanks, encroachments, foul odors from a neighbor’s garage, etc.) that may affect the buyers’ decision to purchase the property. The form is clearly focused on physical things that affect the livability of a home, such as significant water leaks, structural problems, termites, and the like. The form says nothing about paranormal activity, deaths, or crimes committed on the property. Still, some buyers might argue that these issues are also “material facts” as they would not have bought the home if they’d known about them prior to making an offer.
Neither a seller or his real estate agent is bound by Ohio law to offer any information upfront regarding these types of stigma. However, if asked directly either by the buyer or the buyer’s agent, the seller and/or seller’s agent is required to answer honestly and completely. The NAR (National Association of Realtors) recommends that Realtors err on the side of caution by disclosing such facts to buyers regardless of being questioned. However, this is only a recommendation, not a law in Ohio. And of course, an agent must receive consent from the seller before offering such information.
If you’re a buyer who has concerns about ghosts, foul-play deaths, or crimes committed on the property, here are common-sense things you should do before entering into a purchase contract:
∙ Search the address of the property online to see if any headlines appear. This could turn up a report of a murder or suicide, break-in, or rumored hauntings. Note that someone passing away peacefully in their home is very different than a death with foul play. Still, some states require this disclosure if the death was within a certain time frame, but Ohio does not.
∙ Get friendly with the neighbors. Neighbors often are well aware of what’s going on in the neighborhood and willing to tell what they know.
∙ Ask the seller’s agent directly if a death or criminal or paranormal activity has been reported. They are required to answer honestly and completely when asked. (If they lie, they risk potential legal problems down the line if a buyer sues.)
This information is intended for general purposes and should not be construed as legal advice for a specific situation. Relevant laws and legal counsel should be consulted for anyone in a situation described above.