Happy Halloween! For many of us, this marks the beginning of a very busy social calendar over the next couple of months.

Let's dive into this week’s Halloween-themed edition of The Ragetté Report. (By the way, I started writing this one a month ago - I love Halloween.) 🦇🎃

Almost Sold… Until the Chilling Truth Emerged 🎃

A Connecticut real estate agent nearly sold a home without knowing it was the site of a grisly murder. Before the property went under contract, she noticed that the owner had removed the living room carpet — likely to hide bloodstains — and was always present during showings. Only when the buyer’s lawyer specifically asked did they discover the home’s dark history: the landlord had been charged with murdering her tenant after a heated eviction dispute. The client took a few days to consider but ultimately decided it didn’t feel right.

• Disclosure laws vary state by state.

• Properties involved in crimes can deter buyers and lower market value.

• Stigmatized properties may require strategic marketing.

Ralph’s Take

Last year, I showed a home in Pleasantville without realizing it had a pretty notorious history — it was the site of a well-known murder. My clients did a quick Google search, found out about it, and decided it wasn’t the right fit for them. The home eventually sold, but it took longer than others in the area and sold well below the original asking price.

Every real estate course I’ve taken is filled with questions about properties with histories of murder or hauntings. So, what’s the rule when it comes to disclosing this kind of info? Read on… if you dare! 🦇

The "New York Stigmatized Property Law"

In New York State, the rule regarding disclosure of events such as murder, suicide, or hauntings is governed by what is known as the "New York Stigmatized Property Law" (New York Real Property Law Section 443-a).

No Obligation to Disclose:

• Sellers and real estate agents are not legally required to disclose if a property is stigmatized due to events like murder, suicide, or paranormal activity.

Buyer's Right to Inquire:

• Sellers must answer truthfully if directly asked by the buyer or buyer's agent. If a buyer specifically inquires about such events, the seller or their agent must respond honestly if they have knowledge of it.

Material Defects:

• The law differentiates between psychological stigma and material defects. Physical issues that affect the property's value or safety must still be disclosed.

Ralph’s Take

The law is meant to protect sellers and agents from having to disclose information that might not be seen as directly affecting the value of the property, while also ensuring that buyers can receive honest responses when they seek specific information. For sellers, it’s essential to be aware of the obligation to answer honestly if questioned about the history of the property in relation to these specific stigmas. 🧛‍♂️