A fun and timely Q&A: In the State of Washington, if a property is thought to be haunted, or someone was murdered on the property, or someone killed themselves on the property is the seller required to disclose this stuff on the Property Disclosure Statement (Form 17)?
Form 17 allows a seller to make “… disclosures of material facts or material defects to buyer based on seller’s actual knowledge of the property at the time seller completes this disclosure statement.”
Questions like the ones posed above are considered negative stigmas not material facts. Can negative stigmas affect property value? What do you think?
Then there’s questions like can an agent represent in good faith and hide/omit information at the same time? Is a seller obligated to disclose things that aren’t on the Form 17? What if the buyer says knowing such negative stigma would have affected their decision to buy — can the buyer sue someone, anyone, everyone?
Sellers and agents are only obligated to disclose material facts or defects. According to the Law of Real Estate Agency in Washington material fact is described as: information that substantially adversely affects the value of the property or a party’s ability to perform its obligations in a real estate transaction, or operates to materially impair or defeat the purpose of the transaction. The fact or suspicion that the property, or any neighboring property, is or was the site of a murder, suicide or other death, rape or other sex crime, assault or other violent crime, robbery or burglary, illegal drug activity, gang-related activity, political or religious activity, or other act, occurrence, or use not adversely affecting the physical condition of or title to the property is not a material fact.
No related posts.
