Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - Would you be too scared to buy a house where you know someone died?

troutman · 05-21-2008, 10:25 AM

http://www.reca.ca/consumer_informat...properties.htm

Consumers may have other areas of concern that would cause them to avoid a property. Certain events may cause a property to be described as a “stigmatized property.” This term is sometimes applied to a property that has had some circumstance occur in or near it, but which does not specifically affect the appearance or function of the property itself.

Examples of these might include:

a pedophile is reported to live in the neighbourhood
a former resident was suspected of being an organized crime gang member
a death occurred in the property
the property was robbed or vandalised
there are reports that the property is haunted

Duty to Disclose
When asked, the seller and their industry member must disclose the information that is known to them. However, keep in mind the current owners may have no knowledge of events that occurred before their ownership or the property may have been rented out and the seller may not know of events that occurred during the rental period. For serious concerns, consumers are advised to make inquiries of the local police service.

Home sellers and seller’s representatives who are concerned that some event may cause the seller’s property to be considered stigmatized will face a dilemma - do we disclose and risk harming our property value, or do we not disclose and risk the buyer learning the information later and pursuing us for damages? Prudent industry members will discuss all the variables with the seller and should suggest obtaining a lawyer’s advice as to the seller’s rights and obligations.

Home sellers are cautioned to keep in mind this issue differs from the responsibility to disclose material latent defects. A latent defect is a material defect not generally visible, such as a serious crack in the foundation that has been covered over with paneling or improper wiring covered by drywall. Sellers and their representatives must disclose all material latent defects about a property to potential buyers, or otherwise risk being liable to the buyer for the costs of repairing the defect.

05-21-2008, 10:25 AM	#19
troutman Unfrozen Caveman Lawyer Join Date: Oct 2002 Location: Crowsnest Pass Exp:	http://www.reca.ca/consumer_informat...properties.htm Consumers may have other areas of concern that would cause them to avoid a property. Certain events may cause a property to be described as a “stigmatized property.” This term is sometimes applied to a property that has had some circumstance occur in or near it, but which does not specifically affect the appearance or function of the property itself. Examples of these might include: a pedophile is reported to live in the neighbourhood a former resident was suspected of being an organized crime gang member a death occurred in the property the property was robbed or vandalised there are reports that the property is haunted Duty to Disclose When asked, the seller and their industry member must disclose the information that is known to them. However, keep in mind the current owners may have no knowledge of events that occurred before their ownership or the property may have been rented out and the seller may not know of events that occurred during the rental period. For serious concerns, consumers are advised to make inquiries of the local police service. Home sellers and seller’s representatives who are concerned that some event may cause the seller’s property to be considered stigmatized will face a dilemma - do we disclose and risk harming our property value, or do we not disclose and risk the buyer learning the information later and pursuing us for damages? Prudent industry members will discuss all the variables with the seller and should suggest obtaining a lawyer’s advice as to the seller’s rights and obligations. Home sellers are cautioned to keep in mind this issue differs from the responsibility to disclose material latent defects. A latent defect is a material defect not generally visible, such as a serious crack in the foundation that has been covered over with paneling or improper wiring covered by drywall. Sellers and their representatives must disclose all material latent defects about a property to potential buyers, or otherwise risk being liable to the buyer for the costs of repairing the defect.