Is it mandatory for real estate agents to reveal if someone passed away in a property? Here's how to determine the answer.

• Real estate agents are obligated to highlight any physical or material flaws in a property when showing it to potential buyers, except in cases where there has been a recent death in the home.
• If you're concerned about prior death or other stigmas affecting a property, inquire about its history before making a purchase.
• Events that are stigmatized include murder, suicide, alleged hauntings, or a notorious previous owner.

A real estate agent must disclose any physical or material defects in a property to a prospective homebuyer.

Whether a death on a property is considered a material defect requiring disclosure depends on the state where the house is located. In most states, death does not necessitate disclosure.

According to the National Association of Realtors, some homes are labeled as "stigmatized properties" due to their psychological impact from a past or suspected event on the property, despite having no physical damage.

NAR noted that stigmatizing events such as murder, suicide, alleged hauntings, or a notorious previous owner can negatively impact the sale of a property.

Which states require disclosure of death

In different states, listing agents may have varying disclosure requirements for buyers. Many states do not mandate death disclosure.

Rules for disclosing prior deaths to homebuyers can be simple and explicitly state that death must be disclosed before a sale can occur. However, these rules may only apply to recent deaths or more stigmatizing events such as murder.

In California, it is mandatory for a seller to reveal if there was a death in the house within the past three years.

In Alaska, the listing agent must communicate any known murders or suicides that occurred in the last year. In South Dakota, sellers are required to disclose any deaths that have taken place within the last 12 months.

Experts suggest that in New York, if a seller has made claims of paranormal activity in the home, they must inform the buyer of potential ghosts in the property, but they do not need to disclose if the house was the site of death or crime.

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It is often the responsibility of homebuyers to inquire about a property's history directly with the agent, even though states like Georgia do not mandate disclosure of such information upfront by real estate agents or sellers. However, they must be truthful if a buyer requests it.

In addition to the disclosure laws in a specific state, real estate agents have a fiduciary responsibility to the sellers, stated Harrison Beacher, a real estate agent and managing partner at Coalition Properties Group in Washington, D.C.

Beacher stated that if someone inquired about it, they could direct them to empirical resources for answers, but there were no obligations for him to provide extensive details.

Homebuyers should be aware of properties that have been stigmatized due to murder, suicide, alleged hauntings, or notorious prior owners, and how to obtain more information about the home's history.

Who buys stigmatized properties?

Homebuyers who believe in ghosts or spirits may be deterred by stigmatized homes, according to Daryl Fairweather, the chief economist at Redfin, an online real estate brokerage firm.

"While some people are deterred from visiting those homes, others may be attracted to them."

A recent report by Real Estate Witch found that nearly three-quarters, or 72%, of potential homebuyers would purchase a haunted house for a lower price. The site surveyed 1,000 U.S. adults in September to gather their opinions on buying and selling haunted houses.

Beacher stated that some buyers are willing to overlook the stigma associated with a property if it means they can get a lower price.

According to a report by the Real Estate Witch, approximately 43% of surveyed Americans would be willing to pay at least $50,000 less than the market value for a haunted house.

In 2021, the LaBianca mansion, the site of the 1969 murders of Leno and Rosemary LaBianca by Charles Manson's followers, was sold for $1.875 million. The previous owner, Zak Bagans, a paranormal investigator, had originally listed the house for $2.2 million but later reduced the price to $1.9 million.

Stigmatized properties are interacted with differently by various individuals, according to Beacher.

In 2023, approximately 67% of potential buyers stated that they would purchase a haunted house if it met their preferences, such as having desirable features, the ideal location, or a more affordable price, according to Zillow.

At Elgin, Illinois, Connie Vavra, managing broker of RE/MAX, a real estate brokerage franchise, stated that "every property has a history."

"Although we cannot undo the past events that occurred in that home, it does not mean that you cannot have positive energy and a positive experience living there."

How to find out a home's history

If you have questions or concerns about a property's history, it's best to ask the real estate agent, as they may be required to provide truthful information or direct you to the right resources in some states.

Here are two ways to check, experts say:

1. Talk to neighbors and officials

Experts advise keeping an eye on the property's neighbors in addition to the real estate agent for first-hand experience and information about previous homeowners.

A former White House chief information officer, now CEO of cybersecurity firm Fortalice Solution, suggested contacting the county manager where the property is located.

Can you inquire at the county manager's office if there is any information about the property you're interested in and if there are any crime records associated with it?

2. Follow the paper trail

Vavra stated that the internet is a risky platform for obtaining information, as it contains a vast amount of information about properties.

If the police respond to any activity at the house, it is likely that the event will be reported in the newspaper and become a public record, Payton stated.

She stated that all information can be obtained through an advanced online search, including newspaper headlines and police reports.