Buying or selling a haunted house? This is what the law says you must do

House hunting comes with many challenges – why would they make TV shows about it otherwise? But one thing is especially difficult to deduce when you’re thinking of buying: whether the house is already inhabited by invisible spirits. That’s why some states have laws to specifically address the buying and selling of haunted houses.

Real estate website Zillow recently did a quick review and found that only four states specifically mention “paranormal activity” in their disclosure laws: New York, New Jersey, Massachusetts and Minnesota, and only two of them require disclosure .

Of course, there are additional laws that deal with why a house might be haunted, such as revealing if someone died in the house…and how they died.

According to Zillow:

• New York courts will “rescind the sale of a house if the seller creates and perpetuates a reputation that the house is haunted and then takes unfair advantage of the buyer’s ignorance of the house’s ghostly reputation.” For example, if you don’t tell a potential buyer that your house will be featured on a ghost hunting TV show, the courts can void the sale.
• In New Jersey, “a seller must truthfully tell a buyer if their property comes with ghost roommates,” but only if asked.
• In Massachusetts and Minnesota, the laws specifically mention homes that are “psychologically impaired” saying that buyers are not required to disclose that condition.

What does the law say in Alabama?

Alabama is a “caveat emptor” state, which means “buyer, beware.” The statue does not specifically mention ghosts or paranormal activity. In contrast, Alabama law does not require it anyone disclosures, according to NOLO.com, an online legal encyclopedia. Still, most responsible sellers include disclosures about defects that affect “health, safety, environmental, structural, mechanical, or other potentially problematic areas,” NOLO says.

There is one exception to Alabama’s “buyer beware” disclosure law: If a buyer specifically asks if a property is haunted or has any other problems, the seller must answer honestly.

Zillow says nine states have laws that mention disclosure of a death on property, but they vary based on how long ago the death was and whether it was natural or homicide.

Zillow says:

• Sellers in California must disclose a death on the property if it occurred within three years of the current transaction, while sellers in Alaska must disclose a death that occurred within one year.
• Sellers in South Dakota are only required to tell a potential buyer about a death if it is considered a murder.
• In Connecticut, Delaware, Georgia, New Hampshire, New Jersey and South Carolina, sellers have a responsibility to tell a seller that there has been a death on the property “only if asked.”

Deaths and potential spirits cause a house to be defined as “stigmatized,” meaning a house “potential buyers might avoid based on an event, such as a murder or suicide, that happened there ,” says Zillow. “Stigmated properties can present challenges for sellers and opportunities for buyers.”

Which brings us to the big question: Does a “haunted” house make it more or less likely to sell? Zillow surveyed potential buyers and found that “29% said yes more likely buy a house if it was haunted,” while “33% said nothing could convince them to buy” a haunted house.

Some people like the idea of ​​a haunted house because they can get a better deal for the price, while some may see commercial potential for a haunted property, such as turning it into a short-term rental to attract ghost hunters or those looking for “a supernatural encounter,” says Zillow.