ABOUT STIGMATIZED PROPERTIES
Would you buy a "haunted" house?
Whether or not you believe
in ghosts, there are many people who DO believe.
In real estate, these homes are referred to as
"stigmatized" properties. Other properties that fit into this category
include those where a murder, suicide, or other violent crime has taken
place.
If you are in the market for a house or are thinking about buying, you may be
interested to know that there is no statutory obligation in Florida for an owner or real
estate agent to inform prospective buyers that the house is stigmatized. However, because of case law
implications, the Daytona Beach Area Association of REALTORS strongly advises REALTORS
to disclose if they know the property is stigmatized. This disclosure should come with the
approval of the seller.
If you are selling this type of property, your REALTOR should discuss the pros and
cons of this disclosure. The advantage is that the buyer cannot come back later and sue.
And even if the legal action has no merit, the hassle isn't worth it. The
disadvantage is that it may discourage a buyer who does believe in the supernatural.
Of course, ghosts and crimes are not the only elements that can stigmatize a property.
Another factor of concern to potential homebuyers is disease, most notably, acquired immune deficiency syndrome (AIDS) and now COVID-19.
The presence of a previous owner with a disease like AIDS or COVID-19 may seem like a stigmatizing factor to many;
however, that is not the case. In the case of AIDS, revisions to our nation's fair housing laws have
identified the handicapped as a protected class much like ethnic status, religious beliefs
or gender, and AIDS is considered a handicap. Therefore, a REALTOR cannot disclose the
fact that an AIDS patient lived there as it is considered immaterial to the transaction.
In fact, if a real estate agent is specifically asked if anyone with AIDS does or has
lived in the house, they are not obliged to reply. The response is more likely to be a
generic statement about protected classes identified under fair housing laws and that
legally, no comment can be made. Any prospective buyer should not assume that means
"yes." It means, by law, this is a discussion that cannot take place.
For COVID-19, the jury is still out. As of July, 2020, protocols and guidelines are still being developed.
All members of the Daytona Beach Area Association of REALTORS subscribe not only to state
and national fair housing laws, but also to a strict Code of Ethics outlining proper
behavior in dealing with both sellers and buyers.