10/26/2024
Spooky Q&A! 🎃☠️
Does a seller need to disclose that a death occurred in the property?
Typically, no. This is called a “stigmatized property.” The National Association of Realtors® defines a stigmatized property as “a property that has been psychologically impacted by an event which occurred, or was suspected to have occurred, on the property, such event being one that has no physical impact of any kind.”
Every state has different laws on stigmatized properties. In Pennsylvania, the case Milliken v. Jacono set the path for whether deaths in a property are (or are not) disclosed in the state. The Supreme Court held the mere fact of a death (in this instance, a murder/suicide) is considered to be a “pure psychological stigma,” which is not a material defect of the property that sellers must disclose to buyers. The Court further stated that the buyers “possessed the tools to discover the murder/suicide and did not do so.”
A key distinction in Milliken is that the mere fact of a death is not a defect that physically affects the property. But if a death does have a physical impact, that physical impact would be disclosed and it may naturally lead to disclosure of the death itself. For example, if a death involves property and repairs of damage caused by bodily fluids, the damage and repairs likely have to be disclosed.