Every year I try and write a light column at the end of October about disclosure of what I’ll call “stigmatized properties.” Last year, I skipped this topic for about three weeks since most of us were in the middle of flood and hurricane cleanup and there was nothing funny about any of it. This year, however, is a totally different story and with a little bit of luck, next year we won’t have any hurricanes to write about – so on to the paranormal.
In most U.S. states, sellers are not legally required to disclose alleged paranormal activity unless they have a history of marketing the property as haunted. However, some states like New York, New Jersey and Massachusetts have specific laws, and a seller’s disclosure is mandatory if asked directly, since failing to answer truthfully can have legal consequences. In addition, some states may require disclosure for certain types of deaths, like murder or suicide, regardless of paranormal claims.
The best way to handle a property that may be stigmatized or has a reputation for being haunted is to answer a buyer’s question truthfully to the best of your knowledge and ability. Stigmatized properties can impact their value and could lead to a lower sale price even if there is no proof of paranormal activity, so just like everything else in your home, honesty is the best policy. Also, if you have any concern about paranormal activity in your home or a home you’re interested in buying, check the state’s disclosure laws.
But what about Florida laws regarding paranormal activity? Florida does not require sellers to disclose paranormal activity in a home. Florida law mandates the disclosure of “material facts” that affect a property’s value, but it does not consider hauntings, deaths or crimes as material facts legally requiring disclosure. Buyers who may be concerned about such issues must talk to sellers directly, and sellers should be transparent about what they know, if anything, on this topic.
In addition to paranormal activity, Florida law does not require sellers to disclose deaths at the property, including homicide or suicide. Crimes committed on or near the property also do not need to be disclosed. And nearby sexual offenders do not need to be disclosed. This information is available to buyers by checking public databases or asking their attorney to do so.
Basically, Florida requires disclosure of material defects like roofs, electrical systems, appliances, consistent flooding, hidden mold and a variety of other material defects that could affect the value of a property.
Paranormal activity, no matter how much it may be a reality to some people, is not considered a material defect by the state of Florida. And if some of those crazy Northeastern states want to make laws about paranormal activity in properties for sale or include it on their disclosure forms, well, best I don’t comment on their decisions.
I think it would be a great year to dress up for Halloween and enjoy the fantasy of the holiday. If you happen to see a ghost or poltergeist, just remember they’re not a material defect, no matter how real they look. Always answer questions about your home truthfully and you’ll be fine. Happy Halloween.
