Haunted Houses & other Stigmatized properties

Dated: October 20 2022

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In October our thoughts turn to all things ‘spooky’ so if you’re looking to buy or sell a home now, what better time to learn more about stigmatized properties.

A stigmatized property has a perceived condition attached to it rather than an actual structural issue associated with the property itself. Some of the most common factors that can create a stigma are:

  • Murder, suicide or death from natural causes on the property
  • Criminal activity, including grow-ops or sex work within the home
  • Reports of haunting or paranormal activity
  • Located next to a cemetery or burial ground
  • A street, floor or unit number that is perceived as unlucky

 

In Alberta, stigmatized homes do not have to be disclosed by law and there is no obligation to put that information on the MLS system. This is because a stigma is subjective and therefore doesn’t have a structural impact on the home as a material latent defect would.

 

What does this mean to a buyer? It’s important that a buyer share any concerns they may have over possible stigmas with their agent. By doing so, the agent has a duty to ask the seller’s agent whether a property of interest is free from any buyer-identified stigmas. A buyer and their agent can also search the property online for events associated with the address. One example of this is House Creep. https://www.housecreep.com/directory/ca/alberta/calgary

 

On the other side of the transaction, it is highly recommended that the seller tells the truth and not provide misleading information about their property. The seller’s representative is required to provide truthful answers to the buyer’s questions or to indicate that the Seller has instructed them not to answer, which will be indicative of the actual answer anyway.

 

One final note on stigmas and property values. Although you can likely purchase a stigmatized property at a discount and stigmas tend to decrease with the passage of time, it might always be an issue when it’s time to sell compared to a ‘normal’ property.

For more information, check out https://www.creb.com/News/CREBNow/

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Cheryl Donnelly

CHERYLI’m proud to have spent almost 3 decades in the Real Estate industry and to have helped hundreds of people sell their current properties and find their dream homes. My career is a culminat....

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