Stigmatized property
In real estate, stigmatized property is property that buyers or tenants may shun for reasons that are unrelated to its physical condition or features.[1] These can include death of an occupant,[1][2] murder,[1][2] suicide,[2] and even the belief that a house is haunted.[3]
Controversy exists regarding the definitions of stigma and what sorts of stigma must be disclosed at sale. It is argued that the seller has a duty to disclose any such history of the property. This, in practice, falls into two categories: demonstrable (physical) and emotional. Local jurisdictions vary widely in their interpretation of these issues and occasionally contradict federal law.
Types of stigma
Many jurisdictions recognize several forms of stigmatized property, and have passed resolutions or statutes to deal with them. One issue that separates them is disclosure. Depending on the jurisdiction of the house, the seller may not be required to disclose the full facts. Some specific types must always be disclosed, others are up to the jurisdiction, and still others up to the realtor.[3]
The types of stigma include:
- Criminal stigma: the property was used in the ongoing commission of a crime. For example, a house is stigmatized if it has been used as a drug den. In the case of drug dens, some drug addicts may inadvertently come to the address expecting to purchase illegal drugs. Most jurisdictions require full disclosure of this sort of element.[3]
- Debt stigma: Debt collectors unaware that a debtor has moved out of a particular residence may continue their pursuit at the same location, resulting in harassment of innocent subsequent occupiers. This is particularly pronounced if the collection agency uses aggressive or illegal tactics.[3]
- Minimal stigma is known to, or taken seriously by, only a small select group, and such a stigma is unlikely to affect the ability to sell the property; in such a case, realtors may decide to disclose this information in a case-by-case basis.[4]
- Murder/suicide stigma: Some jurisdictions in the United States require property sellers to reveal if murder or suicide occurred on the premises. California state law does if the event occurred within the previous three years. To protect sellers from lawsuits, Florida state law does not require any notification.[2] In North Carolina, sellers and agents do not have to volunteer information about the death of previous occupants, but a direct question must be answered truthfully.[1]
- Phenomena stigma: Many (but not all) jurisdictions require disclosure if a house is renowned for "haunting", ghost sightings, etc. This is in a separate category from public stigma, wherein the knowledge of "haunting" is restricted to a local market.mold. [5]
- Public stigma: when the stigma is known to a wide selection of the population and any reasonable person can be expected to know of it. Examples include the
Legal status
At least in the United States, the principle of
In
A previous version of this article stated that serious illness (such as AIDS) is also a reason a property may become stigmatized, citing a Florida law that contradicts federal law.[2][7] However, under federal fair-housing laws, persons with AIDS are considered handicapped and members of a protected class. The fact that an occupant of a property has AIDS does not require disclosure to a prospective buyer.
Several states have created specific statutes in the US adding "stigmatised property" verbiage to their legal code.[8]
Examples
Famous homes, such as those used in television productions or filmmaking, can also be stigmatized by increased traffic from fans wanting to see the house in person. One example is the house at 112 Ocean Avenue in
Another example is the house at 74 Surfside Avenue in Montauk, New York that belonged to Norman Kean, a Broadway producer who killed himself in 1988 after stabbing his wife Gwyda Donhowe over 60 times.[10] Actress Tuesday Weld bought the house in 1990, but when Weld decided to sell in 2006, it took three years for her to find a buyer. In 2009, she finally sold it for about $2.25 million under asking.[11]
See also
References
- ^ a b c d Tomei, Marilyn E. (Spring 1992). "ANSWERLINE: STIGMATIZED PROPERTIES" (PDF). Real Estate Bulletin. 23 (1). North Carolina Real Estate Commission: 5.
- ^ a b c d e "Title XL > Chapter 689 > Section 25: Failure to disclose homicide, suicide, deaths, or diagnosis of HIV or AIDS infection in an occupant of real property". 2011 Florida Statutes. The Florida Senate. 2011. Retrieved November 17, 2011.
- ^ ISBN 978-0-7931-3193-8.
- ISBN 978-1-4116-0560-2.
- ^ "Can 'ghosts' cause bad air? Poor indoor air quality and 'sightings'".
- ISBN 1-4195-0167-4.
- ^ "Housing Discrimination Because of HIV/AIDS Is Illegal". The HUDdle. 2015-04-07. Retrieved 2017-09-03.
- ^ Zygmunt, Raine (December 2003). "Stigmatized Property: Haunted Sales". REALTOR® Magazine. National Association of Realtors. Retrieved October 15, 2017.
- ISBN 978-1-118-04563-3.
- ^ Freifeld, Karen (February 9, 1988). "Murder and Suicide — By a Thorough Man". Newsday.
- ^ "Unsettling Facts About Tuesday Weld, The Teenager Who Survived Hollywood". Factinate. June 23, 2022.