What is a stigmatized property?
A stigmatized property is a place that buyers or tenants may shun for example because it was the location of a crime, or a property which may be haunted.
Currently, only Quebec is the only place in Canada where disclosure laws oblige a seller to reveal a past murder. In the United States most states require sellers to disclose a suicide or murder that occurred on the property within the past three years.
Selling a Stigmatized Property.
Recently, a home was put on the market in Calgary. This wouldn’t be much of a story, except, this home happens to be the site of a stabbing spree in April 15th where five students died. The listing itself makes no mention of the murder.
The MLS listing states the following:
“The location of this property could not be better and it awaits your personal touch to turn it into something GREAT!”
“With ample space inside, while located on a MASSIVE lot in a great community, this property has tons of potential for the right person/investor.
“It has a few updates, but needs some work to turn it into the gem it can be.
“It possesses the AMAZING basics you cannot add on later: location, great structure, huge corner lot and big beautiful trees. Complete with 4 bedrooms, this property has all the right bones for you and your family.”
The memorials for the five murdered students are still on the property. In case you are interested, the house which is located in the Brentwood area of Calgary was listed for $489,000.00.
However, this stigma can affect property values? I would say yes, however, if you didn’t know about it, and paid full “value”, you could be in for a shock when you try to sell down the road.
The onus is on purchasers to ask the right question. Caveat Emptor or buyer beware applies. While the sellers have no obligation to volunteer the information, they are not permitted to lie when asked a direct question. Asking the right questions becomes very important. Keep in mind, that the agent themselves may not know that the property may be stigmatized.
Neighbours on the other hand can be a great tool when trying to find out information about a property.
Do you think that sellers should have to disclose if a murder or suicide occurred on the property or whether the property is haunted?