Real estate disclosure laws primarily focus on defects that impact the use of a property, such as issues with the HVAC system or problems with the plumbing. However, those selling homes may also sometimes need to disclose facts about the property that can affect its fair market or resale value.
In some cases, a death at the property can lead to local stigma, especially if the cause of death was homicide or suicide. People from other areas may not be aware of the property’s notoriety until they assume possession and begin talking with neighbors. Do buyers have any recourse in cases where sellers omit information about a death that occurred at the property?
Timing influences disclosure obligations
If a death at the property was relatively recent, then the sellers typically need to inform potential buyers about it. However, there are restrictions on that disclosure requirement.
Once three years have passed since the date of death, property owners no longer need to disclose it to buyers interested in the property. Regardless of how notorious the death may have been due to criminal activity or other factors, after 36 months, sellers no longer have any obligation to inform others about what occurred there.
Those who discover violations of disclosure requirements may have grounds for a real estate lawsuit. Buyers may be able to hold them responsible for their deception — especially if a seller knew information that could affect the resale value of the property. Reviewing disclosure documents as well as the information that has been discovered with an experienced attorney can help buyers understand their options.