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Who You Gonna Call? The Ghost of Disclosure Laws in Real Estate
Dated: October 26 2023
Views: 421
Inspired by an analysis from Zillow and Haunted Real Estate Blog
So you've found your dream home, and you're about to sign the dotted line. But wait—what if your new home comes with, shall we say, "extra" residents? Yep, I'm talking about the ghostly kind. It turns out that when it comes to haunted houses, the disclosure laws in most states are spookily lacking.
Paranormal Protections: Only Four States Take It Seriously
Would you believe that only four states—New York, New Jersey, Massachusetts, and Minnesota—explicitly address paranormal activity in their real estate disclosure laws? In the Empire State, for example, if a seller actively perpetuates the idea that their home is haunted and then exploits a buyer's ignorance of this fact, courts can overturn the sale. So, if you've been hosting ghost hunters in your home for a reality TV gig, be prepared to face spectral scrutiny from potential buyers—or else face legal consequences.
The "Don't Ask, Don't Tell" Policy in New Jersey
In the Garden State, a seller is obligated to spill the haunted beans—but only if you explicitly ask them. Yes, you heard it right. You have to be the one to query about phantom roommates or basement banshees.
"Psychologically Affected" Properties
Many states opt for a vaguer approach, only requiring disclosure of property facts that could lead to "stigma" or "psychological impact." Massachusetts and Minnesota specifically categorize homes with paranormal activity as "psychologically affected," thus exempting them from the must-disclose list.
Real Life (or Afterlife) Stories from the Field
Jennifer Stauter Kornstedt, a Wisconsin real estate agent, shared her hair-raising experience: “I worked with a seller who insisted their house was haunted by a basement-dwelling ghost. During an open house, I heard mysterious bangs emanating from below, followed by eerie static-filled phone calls.” While Wisconsin law didn't require them to disclose this, they chose to do so. Even though the house never sold—the owners decided to stay put—Stauter Kornstedt claims she's been haunted by the experience ever since.
A Matter of Life and Death
But hauntings aren't the only thing to consider. Nine states mandate disclosure regarding deaths on the property, with varying time frames. In California, it's within three years; Alaska requires it within one year; and in South Dakota, sellers must disclose any homicides. In several other states, this information must only be disclosed if the buyer asks.
So, Is Your Future Home Haunted?
Think your house might have some spectral squatters? Before you buy, make sure to research the disclosure laws in your state, so you're not caught off guard by any unexpected roommates from the afterlife.
It's a fascinating and downright eerie facet of real estate that most people overlook. Maybe it's time for a more progressive approach to these outdated laws, ensuring transparency for all—living or otherwise.
So next time you're house-hunting, it might not hurt to throw in a question or two about the home's history—you never know what skeletons (or spirits) are hiding in the closet!
Frances Thorsen
Frances Thorsen is a leading real estate author and thought leader. She got her real estate license and became a REALTOR® in 1985. She was an early adopter of real estate technology on the Interne....
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