Name the stigmas you can’t live with
I’m looking to purchase a home in a historic district, but I want to be sure that it isn’t haunted. Do you have any advice?
It’s fun to be able to address this issue on Halloween weekend.
I’m sure many stories of haunted houses are being exchanged to mark the occasion. Naturally, these stories have some asking the question: “Could you live at that address?” For many the answer is an unwavering “No!” For others, it would be fine, especially if they can get a deal on the home.
Fortunately, for those who would object, many of the spooktacular addresses from the big screen — such as 1428 Elm St., in Springwood, Ohio — are fictional and will never appear for sale. That said, the actual house in which “A Nightmare on Elm Street” was filmed is a private residence in Los Angeles, Calif.
But what about real properties that are thought to be haunted, like the home of my friends who claimed it had a friendly ghost they called Mr. Zitch? Or historical homes that may have an unsettling history? Whether you believe in restless spirits or paranormal activity, the subject is something that is addressed in real estate transactions.
In the context of real estate, a “stigma” can be defined as a non-physical, intangible attribute of a property that may elicit a psychological or emotional response. There may have been an event or circumstance that occurred in or near the property that does not affect the property’s appearance or function, but might be considered by some as emotionally disquieting.
Examples of stigmas may include:
> The location where a tragic event occurred;
> An interior or exterior with poor feng shui;
> An address with unlucky numbers;
> A property where a serious crime has occurred; and,
> A location where someone has died — a young person’s death can be especially stigmatizing.
What one person finds unacceptable may not be a stigma to another. Generally speaking, sellers are not required to disclose psychological stigmas relating to a property. Stigmas are personal and fall under the doctrine of caveat emptor, or buyer beware, meaning you should take steps to satisfy yourself that a property is free of what you may consider to be a stigma.
This is why it is important that you have an honest and direct conversation with your salesperson regarding anything you may consider a stigma. By bringing it to their attention, your rep can ask the seller about the history of their property and any existence of stigmas that you have identified.
You may also want to do some independent research. You can search online and go through local archives; neighbouring residents can often be a good source of information, too.
My advice to sellers who have information about a property that could be seen as a stigma is to speak with their salespersons to have a fulsome discussion about the issue. You may also want to speak with your real estate lawyer about what you may want, or need, to disclose.