Did anything weird happen there?
Yes, the seller will be required to disclose physical defects and also defects that create the potential for stigmatization. “What you’re talking about is the issue of ‘psychological damage’ to a property, to be distinguished from ‘physical damage,’” said NOLO. “In some cases, the psychological damage is so great—such as after a violent or highly publicized murder or suicide, or widespread reports of haunting—that the house is considered ‘stigmatized’ and therefore less valuable. In most states, the owner would indeed be expected to disclose a defect causing the house to be stigmatized, so that buyers could adjust their expectations and purchase price accordingly.”
A natural death in the home, however, is not generally something that needs to be disclosed. If that’s the type of thing that could keep you from wanting to live there you, just ask. “If a prospective home buyer asks you outright about whether anyone has died in the home, you cannot lie (unless you want to risk being later sued for fraud),” they said. “Also, be prepared for any buyer who is interested in this issue (or shall we say obsessed by it?) to find out the information online, at a site like DiedinHouse.com.”
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