Selling your haunted home in Massachusetts

Stigmatized properties for sale in MA: Sellers’ disclosures to Buyers according to state law

When Selling a home, a Seller has to abide by rules and guidelines. Some of these are pertinent to facts that may affect the value or the appeal of the building, and in turn, the likelihood of completing a Purchase & Sale transaction. The law may or may not require a Home Seller to disclose pertinent information to buyers.

Haunted homes and stigmatized properties in general are dwellings where, reportedly, there is or has been paranormal activity or they are the site of homicide and/or suicide. The information can have a psychological impact on the value and appeal of the property.

Each buyer, and Seller, has a different sensitivity to the issue of stigmatized homes and for many it’s not an issue at all. However, the problem of disclosing these events and situations could add uncertainty to a transaction if not clear. The potential for a headache or legal nightmare in the aftermath is a strong possibility when previously unknown and critical information emerges.

There are already so many hurdles and challenges in the way of a Home Seller successfully closing a sale, like inspections, appraisals, concessions, fees, assists, waivers, endless contingencies, negotiations and other disclosures. Finding out late in the deal about a “paranormal presence” in a house, could jeopardize a done deal by unsettling even the most motivated of buyers.

The creaky floors could be something easy to fix and not likely to hold up a Sale, but should they be thought to be due to paranormal activity not having disclosed by the Seller, there could be an insurmountable issue. Arising after signatures have been exchanged, it could provide a reason for legal claims based on lack of disclosure on the Sellers’ side.


Unlike California, where you can go back 3 years and more for psychologically impacting events on the property, it’s not the case in Massachusetts! The law clearly states that, as it doesn’t fall in the category of material facts which have to be disclosed, it’s not necessary “to disclose the fact that the property was the site of “…felony, suicide or homicide” or “…that the real property has been the site of an alleged parapsychological or supernatural phenomenon.”


So no disclosure of any stigma on a property for sale is legally necessary in Massachusetts, and that’s for a Seller or a Landlord or Lessor, to buyers or tenants, renters, lessees.


The general “Caveat Emptor” (Buyer beware) rule applies here for buyers, who are expected by law to perform their due diligence if sensitive to this aspect of a property. If you’re a buyer, we suggest you talk to neighbors, research public records, and just ask clear and direct questions, especially if there’s a doubt, maybe you heard some rumors, maybe a just a gut feeling.

If buyers ask questions, then the Seller cannot misrepresent or make false statement to buyers without creating cause of action, with half-truths also providing an opportunity for a successful lawsuit. These questions could be addressed to both Sellers and realtors, if an agent was hired to market the property.


What Sellers can do, is to provide information voluntarily. If they so choose, it’s their prerogative, but NOT obligation and buyers can’t claim it as a right.


If represented by an agent, in the same way no disclosure is necessary. Due to the fiduciary nature of the relationship between agent and Seller, the agent cannot provide the information voluntarily, unlike the Seller , and unless the Seller authorizes or instructs the agent to do so. The agent can always decline to represent the Seller and market the stigmatized property or terminate an agreement already in place if the information emerges after establishing the contractual relationship.


If an investor, like us at Proxima Investors, is involved, depending on the type of underlying deal, the investor is subject to the same disclosure rules as the Seller , if holding equitable interest in the property.


At Proxima Investors we have not come across a situation of stigmatized properties where it was a concern. However, since Massachusetts is an old state with many old and beautiful homes. Homes can have a long and known history and the creaks and noises of old homes can be unsettling and inspire stories passed down over centuries. Think about Salem in the 1600s when Massachusetts was a very populous state with lots going on. It’s only a matter of time that we will run into this issue. We already have invested in old and antique homes, which can be difficult to sell in this market, and we love them. Should the issue at some point arise, we believe that it should be dealt with on a case-by-case basis, as property stigmatizing events and situation have a different psychological impact depending on their uniqueness. In any case, if the smallest of unfounded rumors, or a an event which is overblown in its magnitude is holding back the a Seller from moving the house, we are very interested in the challenge of buying and selling the difficult property. Our marketing tools and strategies open the door to many more solutions than an agent or an owner selling FSBO typically have at their disposal. Call us at 617-999-0269 or 617-921-9265 to throw us the challenge!

Proxima Investors are not attorneys and we do not provide legal advice and only state our opinions. Check with your attorney of choice before making any decision based on the content of this article. A useful resource can be found by clicking the link below to the relevant section of the state law: Real estate transactions; disclosure; psychologically impacted property.

Massachusetts Law Reference:

You May Also Like

What’s a Lease-Purchase

Leave a Reply

Your email address will not be published. Required fields are marked *

Call Now Button