T
hinking of buying a house? Be aware that sellers might not be required to disclose if their property has a spooky past. A recent analysis by Zillow reveals that in most US states, there's no obligation for sellers to reveal paranormal activity.
Only New York, New Jersey, Massachusetts, and Minnesota have laws requiring haunted home disclosures. In New York, the landmark Stambovsky v. Ackley case set a precedent: if a seller has publicly promoted a home as haunted but failed to inform the buyer, the buyer can rescind the sale.
Real estate attorney Katherin Valdez-Lazo explains that sellers must disclose information only if it's "materially impairs the value of the contract and is peculiarly within the knowledge of the seller." In New Jersey, sellers must answer honestly about supernatural activity only if asked. Most states don't classify hauntings as material facts requiring disclosure.
In neighboring New York, a buyer can rescind a sale if the seller has created a notion that the house is haunted but failed to disclose it. The court sided with the buyer in the Stambovsky v. Ackley case, ruling that the contract could be rescinded because the house was legally haunted.
New Jersey's policy is different: sellers must answer truthfully about supernatural presence if asked, but they're free to keep ghostly details secret otherwise. Most states don't require disclosure of grim events like murders unless specifically asked.
Properties impacted by a violent or tragic history are labeled "stigmatized," which might devalue the property. Attorney Paul Koenigsberg notes that buyers often expect a discount when purchasing a house with a dark past. For those undeterred, these "murder houses" can come at a bargain.
In Massachusetts and some other states, sellers must disclose if asked about supernatural activity or deaths on the property. However, in many states, including Texas, sellers can keep any grisly secrets to themselves forever. As Valdez-Lazo quips, "You don't stand a ghost of a chance in discovering whether a house is haunted just by inspecting it."
