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Haunting Disclosures: Death On Property

Every state has their own statutes, codes and laws. This one is the California Civil Code 1710.2 which “states that death on a property need not be disclosed if it occurred more than 3 years prior to a sale. [The statute does NOT say that a death within 3 years must be disclosed.] If a death occurs on a property within 3 years, and the circumstances of that death are material (it was a gruesome or offensive death, or affected the reputation of the property), it must be disclosed.” (Reference).

What better topic for the Halloween weekend!

So what does your state say? Is it a requirement? An option?

I personally know of 5 people who have lived in my home who have died in the last 20 years. My wife says she sees “stuff”. I never really “see” anything but I’ve definitely had the feeling someone was in the room with me. Doesn’t matter if it’s night or day. So if I sell do I disclose? No way! I keep the property and open a Haunted Hotel!

Seriously. What is required of your seller? The mortgage lender doesn’t care I can tell you that for a fact. We have no option for disclosure. Your real estate authority, however, probably does have a ruling. Can you get in trouble if you don’t disclose in your state?

Here’s one thing about the California code that does bother me: “Civil Code 1710.2 also absolves anyone from liability for nondisclosure of AIDS related deaths, regardless of how recently the death may have occurred.” Same reference.

You’ve got to be kidding me! I can’t catch murder, it’s not contagious. I can’t catch a heart attack or most forms of cancer. But I can acquire AIDS through contact with certain bodily fluids and someone may have died in my new home just last week from AIDS and left all sorts of fluids behind (I know it’s a stretch but the gruesome details which are in my mind include involuntary release of fluids including sneezing on my countertops) and you’re required to tell me someone was murdered, died from a heart attack or cancer but not AIDS? Well, we are talking about California and as long as people like Nancy Pelosi run that state you’re going to get this.

Here are just a couple of other state links for comparison:
Arizona – required only if asked
South Carolina – not required
Florida – no liability
Minnesota – not required

Final quote: “Sellers should disclose grisly facts about the house, so they will not be “haunted” later. Even if not required by state law, in order to soothe the spirits of prospective buyers and avoid lawsuits, the seller should be upfront about their home’s paranormal guests or ghoulish histories. In a sellers’ market, ghosts tend to fade and may even disappear.” (Reference).

Bottom line: If you are a seller and you know, just go ahead and disclose. If you are buyer and it concerns you ASK! Then if the seller is not forthcoming and you meet Casper in the hallway at midnight you may be able to move and force the seller to buy back the property.

What I’d really like to hear are YOUR GHOST STORIES!

Ken Cook – Nationwide Specialist – Information/Marketing – FHA Home Loans
678-439-8683