Creekside View- February 10, 2025 - "Scary Houses and Other Stigmatized Properties"

If you want to start a debate within a group of real estate agents, ask if they have a duty to disclose those aspects of a property which may cause buyers or tenants to shun for reasons unrelated to its physical condition or features.

These can include a murder, suicide, or death that occurred within the premises, or even a prior occupancy by someone with a serious illness such as AIDS or tuberculosis.?

Some will state that they consider stigma to be a latent or hidden defect treating it the same as one that is not readily determined during a reasonable inspection, like a leaking septic tank.

Others will argue that since there is no physical harm accruing to a buyer why should we be concerned?

So, for starters let’s use the belief that a house is haunted.?

Yes, Virginia, those do exist in the Midwest.

In fact, one is rumored to be located within a mile of my farm home.

If you were the seller, would you want that perception relayed to potential buyers??

Probably not as it would likely scare many prospects away.? Pun intended.

On the other hand, if you were interested in acquiring a property, would you want to know up front that it comes with such a stigma attached?

Yes, of course.

A few years ago, I was asked to represent a house where the homeowner had passed away from natural causes.?

Unfortunately, his body was not found for several days.

The family of the deceased had replaced the subfloor, and the area was re-carpeted.?

You would not have known there had been any type of incident.

I asked, and subsequently received permission to disclose.?

Both the executor of the estate and I believed that if we didn’t it wouldn’t be long before a buyer would find out anyway.?

Some neighbours love to catch a prospect in the driveway and offer their views.

In my opinion it is always better to be proactive anyway.

I have represented several former hospitals for resale.?

Lots of space for development balanced off by public concerns that unhealthy spirits may remain.

Halfway through one showing my guest made the mistake of asking what each room had been used for.?

When I pointed out the former morgue in the basement he was gone.?

I mean gone.? He jumped into his car and left without a word.?

I checked, they didn’t forget anybody in there.

We have had our share of grow-ops, meth labs, chop shops, and crack houses over the years.?

These are most concerning in that a past customer may show up at the front door unannounced.

Even worse, someone could drop by in the middle of the night looking to collect an unpaid debt.

I have even had people refuse to buy a former church stating they wouldn’t feel comfortable living with a potential “overseer”.

The bottom line is, a buyer, if definitely not wanting to live with certain former events, like a death within, should inform his or her Realtor to inquire on any property seriously under consideration.

To my knowledge I haven’t sold a brothel yet.? There’s still time.

Vern McClelland is an associate broker with RE/MAX of Lloydminster, founder of ProgressiveTender.com, and an active partner in his family’s livestock operation.? Comments on this article are welcome either by emailing [email protected]? or calling (306) 821-0611.

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