Monday, October 26, 2026

Haunted Houses

 

Question:  I have been looking at homes for a few weeks now with my Realtor. Many have been vacant. Some of these homes are really creepy. That got me thinking. Does the seller have to disclose a fact that the home is haunted or has had a murder inside of it?

Answer: An owner of a psychologically affected property is not required to disclose that the property is in this classification. A so called, “haunted house,” as you described it, is not a psychologically affected property since there is no formal verification or substantiation that such an entity exists. We know this is correct for Illinois & Indiana. However, an owner of or agent may not intentionally misrepresent a fact concerning a psychologically affected property in response to a direct inquiry from a prospective person who may be involved in the transaction.

Real estate professionals call homes tainted by murder, sex scandals or messy divorces as “stigmatized properties.” While they make up a sliver of the market, they have been a subject of much research and pose a challenge for brokers.

When purchasing a large, long term investment like a home, no question to the owner or listing broker is stupid. In fact, a quick google of the address isn’t a bad idea either.