Disclosure UpdateDISCLOSURE Homes for sale--persistent, long-standing rumor says one is haunted; the owner of another died of AIDS; a group home has been established in the area of a third; a teenage suicide occurred in an otherwise perfect home. While such situations do not affect the use of a property, human emotions can create a significant impact on market value. Enter the subject of disclosure. Several years ago the Massachusetts Association of Realtors worked to gain approval of legislation exempting brokers from liability relative to stigmatized properties. The resulting Stigmatized Property Law, applicable to all real estate contracts executed on or after November 9, 1998, clarifies the issue in general by dividing it into facts and questions. Whereas previous regulations mandated that Realtors disclose to prospective buyers any and all material facts pertinent to a property marketed for sale, the new law stipulates that such psychological stigmas as haunted houses or murder do not constitute fact and as such, are immaterial to property transactions. Thus, Realtors are no longer at risk for failure to reveal that a particular property has suffered some type of psychological impact. However, if questioned directly about supernatural phenomena or suicide, for example, brokers are duty bound to answer truthfully and accurately. As with all real estate matters, whether you're selling or purchasing property, it's best to seek the guidance of an experienced real estate professional when considering what to reveal or what questions to ask. AMERICAN HERITAGE REALTY SUPPORTS THE INTERFAITH COUNCIL FOR THE HOMELESS americanheritagerealty.com 508-255-2202 |
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