Homicide In Property Up For Foreclosure
Does anyone know, if there was a homicide in a home over a year ago, how that will effect the value if at all? And, are we required to discloss that information when we sell it?
Welcome to the boards
I saw something like this covered earlier, here's the link (if it doesn't work, just use the forum search and look for "murder diclosure" just like that, not a typo on my part!!
becki
link: http://www.thecreativeinvestor.com/modules.php?op=modload&name=Forum&file=viewtopic&topic=14337&forum=19
Check with a RE attorney to see if this needs to be disclosed. A RE agent/broker may be able to provide the answer. Usually disclosure pertains to the house and property it is attached to.
lorien,
Great link...that answered the Florida question very well. Thanks I will of course have to check IL law for my states answer, but..thats good. Now I know where to look.
Recently enacted provision in the Florida Statutes (689.25, F.S) states that a homicide is not a material fact that requires disclosure. Some realtors had apparently been sued in the past on this disclosure issue so their lobby got right to work.
Even if your state does not have a law requiring disclosure of the commission of a violent crime or suicide at a property, the property owner may still have to disclose it to potential buyers. As the lawyers would probably tell you, an owner has the obligation to disclose all "material" facts (except those that owners/agents may specifically be prohibited from disclosing, such as fair housing related). A material fact is any fact that could influence the purchaser's decision to buy the property.
I once listed an apartment building for sale. Buyer was an investor. Son of one of the tenants had committed suicide on the property. PA didn't have a law requiring disclosure of suicides. Seller, his attorney and I decided disclosure had to be made so as to avoid even the remotest possibility of a claim of fraud.
Some potential buyers may not purchase a property where a homicide took place. It may not make any difference to others. Regardless, I believe you should disclose it. Reasonable people could agree that it is a material fact.
In Florida, the Legislature has decided for us that it is not a material fact.
It is probably a good idea to disclose the death, but I wouldn't say someone was killed here. Maybe something easier to digest like there was a death on the property and if they want to know more they will ask. You never know when some person in touch with "spirits" will sue you for selling a haunted house