House hunting comes with plenty of challenges – why else would they make TV shows about it? But one thing is particularly difficult to deduce when you’re considering buying – if the house is already inhabited by unseen spirits. That’s why some states have laws to specifically address buying and selling haunted houses.
The real estate website Zillow recently did a quick review and found that only four states specifically mention “paranormal activity” in disclosure laws: New York, New Jersey, Massachusetts and Minnesota – and only two of those require disclosure.
Of course, there are additional laws that deal with the reasons a house might be haunted, such as disclosing whether anyone has died in the house…and how they died.
According to Zillow:
- Courts in New York “will rescind a home sale if the seller creates and perpetuates a reputation that the house is haunted and then takes unfair advantage of a buyer’s ignorance of the home’s ghostly reputation.” For example, if you don’t tell a prospective buyer that your home is going to be featured on a ghost-hunting TV show, the courts can vacate the sale.
- In New Jersey, “a seller must truthfully tell a buyer if their property comes with phantom roommates” but only if asked.
- In Massachusetts and Minnesota, laws specifically mention homes that are “psychologically affected” by saying buyers are not required to disclose this status.
What does the law say in Alabama?
Alabama is a “caveat emptor” state, which means “buyer beware.” The statue does not specifically mention hauntings or paranormal activity. Instead, Alabama law doesn’t require any disclosures, according to NOLO.com, an online legal encyclopedia. Still, most responsible sellers include disclosures about defects that impact “health, safety, environmental, structural, mechanical, or other potential problem areas,” NOLO says.
There is an exception to Alabama’s “buyer beware” disclosure law: If a buyer specifically asks if a property is haunted – or has any other issue – the seller must answer honestly.
Zillow says nine states have laws that mention disclosure of a death on the property but they vary depending on how long ago the death was and whether it was natural or homicide.
Zillow says:
- California sellers must disclose a death on the property if it occurred within three years of the current transaction, while Alaska sellers must disclose a death that occurred within one year.
- South Dakota sellers must only tell a potential buyer about a death if it was ruled a murder.
- In Connecticut, Delaware, Georgia, New Hampshire, New Jersey and South Carolina, sellers have a responsibility to tell a seller there’s been a death on the property “only if asked.”
Deaths and potential spirits lead to a home being defined as “stigmatized”— meaning a house “prospective buyers might shun based on an event, such as a murder or suicide, that happened there,” Zillow says. “Stigmatized properties can pose challenges for sellers and opportunities for buyers.”
Which brings us to the big question: Does a house being “haunted” make it more or less likely to sell? Zillow surveyed prospective buyers and found “29% said they were more likely to buy a home if it was haunted,” while “33% said that 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 on the price, while some may see commercial potential for a haunted property, such as making it a short-term rental to appeal to ghost hunters or those looking for “a supernatural encounter,” Zillow says.
