What's A Stigmatized Property?

Should you tell a prospective buyer if you think your property is haunted?

According to the National Association of REALTORS, a property is stigmatized when it has been "psychologically impacted by an event, which occurred or was suspected to have occurred on the property, such event being one that has no physical impact of any kind." 

Texas Property Code requires that sellers and real estate professionals have a responsibility to make proper disclosures regarding the condition of the property.  But does duty to disclose go beyond physical condition? 

Sellers and real estate professionals have no duty to disclose or inquire as to AIDS/HIV-related illness, deaths that occurred on the property by natural causes, suicides or accidents unrelated to the condition of the property.  But what about ghosts?

The Deceptive Trade Practices Act says that failure to disclose known information is a false, misleading, or deceptive act if doing so is intended to induce the consumer into a transaction he or she would not have entered had the information been disclosed.  The Act does NOT limit the information to the condition of the property.

So, if you think your home is stigmatized, you should make this disclosure.  Always consult a real estate attorney for the best advice.  When it doubt...Disclose!
Source:  Texas A&M Real Estate Center April 2001 Letter of the Law, Judon Fambrough