Buy or sell a haunted house? Here’s what the law says you have to do

Finding housing has many challenges. Why else would they make TV shows about it? But one thing is particularly difficult to deduce when considering a purchase: whether the house is already inhabited by invisible spirits. This is why some states have laws specifically dealing with the buying and selling of haunted houses.

Real estate site Zillow recently did a quick review and found that only four states specifically mention “paranormal activity” in disclosure laws: New York, New Jersey, Massachusetts and Minnesota — and only two of them they demand disclosure.

Of course, there are other laws that deal with why a house may be haunted, such as disclosing whether anyone died in the house…and how they died.

According to Zillow:

• New York courts “will void the sale of a home if the seller creates and perpetuates a reputation that the home is haunted and then takes unfair advantage of the buyer’s ignorance of the home’s ghostly reputation.” For example, if you don’t tell a potential buyer that your home will be featured on a ghost-hunting TV show, the courts can void the sale.
• In New Jersey, “a seller must honestly tell a buyer whether their property has ghost tenants,” but only if asked.
• In Massachusetts and Minnesota, laws specifically mention homes that are “psychologically affected,” specifying that buyers are not required to disclose this status.

What does the law say in Alabama?

Alabama is a “caveat emptor” state, meaning “buyer beware.” The statue does not specifically mention hauntings or paranormal activity. Instead, Alabama law does not require any disclosures, according to NOLO.com, an online legal encyclopedia. Yet most responsible sellers include disclosures about defects that impact “health, safety, environmental, structural, mechanical or other potential issues,” NOLO says.

There is one exception to Alabama’s “buyer beware” disclosure law: If a buyer specifically asks whether a property is haunted – or has any other problem – the seller must answer honestly.

Zillow says nine states have laws that mention disclosing a death on property, but they vary depending on how old the death was and whether it was natural or homicide.

Zillow says:

• California sellers must disclose a death that occurred on the property if it occurred within three years of the current transaction, while Alaska sellers must disclose a death that occurred within one year.
• South Dakota sellers must notify a potential buyer of a death unless it is a homicide.
• In Connecticut, Delaware, Georgia, New Hampshire, New Jersey and South Carolina, sellers have a responsibility to notify a seller that there has been a death on the property “only if told.” request “.

Deaths and potential spirits lead to a house being defined as “stigmatized”, that is, a house that “potential buyers might avoid because of an event, such as a murder or suicide, that occurred there.” is produced,” explains Zillow. “Stigmatized properties can pose challenges for sellers and opportunities for buyers. »

Which brings us to the big question: Does a “haunted” house make it more or less likely to be sold? Zillow surveyed potential buyers and found that “29% said they were more likely to buy a house if it was haunted,” while “33 percent said nothing could convince them to buy” a haunted house.

Some people like the idea of ​​a haunted house because they can get a better price, while others may see business potential for a haunted property, such as making it a short-term rental to attract ghost hunters or those seeking “”a supernatural encounter,” Zillow says.