Comments on: Suicide and other stigmatizing events: Is disclosure required?

By: Anne

Anne — Mon, 18 Jan 2010 19:31:44 +0000

Great article and should serve to make clear in agents’ minds what they “should” do rather than what is the strict legal “right to do.” If I were showing buyers a home in which a suicide or homicide had been committed, I would not hesitate to disclose. If I knew that a listing I was about to take was stigmatized in such a way, and the seller instructed me to not disclose, I would refuse the listing. As agents, we need to set aside whatever our personal feelings would be about such a situation and recognize that this is a huge problem for some people. If we do not disclose, we open ourselves not only to potential legal issues, but to hits to our reputations.

Certainly such a stigmatism could, and likely would, affect value. There was a famous case in my hometown in which a husband killed his wife in their home. The home was in a desirable neighborhood, but when it went up for sale, the case had received so much publicity that I’m not sure the place ever did sell. Many years ago, my spouse and I were looking for another home for ourselves, and had hoped to look at a home in which a suicide had occurred–a fact that was disclosed in the MLS listing, and which had led to a below-market low price. I was a bit hesitant, but my spouse was just fine with it. So, we need to bear in mind that different buyers will feel differently about such a situation. And we need to let them make the decision for themselves via full disclosure.

By: Kathleen

Kathleen — Wed, 30 Dec 2009 17:07:08 +0000

Great article, especially the end. You are right that the buyers of a home will certainly get all the juicy details from the neighbors once they move in, if not sooner. I represented buyers a few years ago who heard about the suicide in the house they were buying prior to us making an offer. The selling agent was heistant to confirm the suicide when I first approached her about it, but I convinced her of the importance of doing so. I simply stated that if we had heard it through the grapevine so would others. Since my buyers were not particularly bothered by the suicide we used the knowledge to our advantage and negotiated a lower price.

By: Jim Gainer

Jim Gainer — Wed, 30 Dec 2009 14:24:56 +0000

Thanks for covering this issue so well. I am a big believer in bringing things like this up way early in the process. This is a good discussion to have with the Seller as they complete the disclosure and dig into some issues like this. It’s also a good discussion to have with the Buyer as you discuss the purchasing process. You might find something the Seller would rather hide and you could eliminate a problem down the line. With the Buyer you might learn things about them you might have otherwise missed – like this kind of fear, or things like they don’t want to be close to a railroad track, or even as simple as a pet allergy. These are the kinds of things we can help consumers avoid or overcome in the negotiations, but we’ll never learn them if we don’t talk about these kinds of issues early in the relationship.

By: Karen Jones

Karen Jones — Wed, 30 Dec 2009 14:20:28 +0000

Jim,
Thanks for keeping us always informed in a legal “tone” but putting the punch line in as to our reputation as agents. Your incite and articles are always enjoyed and absorbed in my data bank. Keep them coming on all topics of interest.
Karen

By: Paul Mazzochetti

Paul Mazzochetti — Wed, 30 Dec 2009 12:26:13 +0000

Jim…once again a great article! Your final paragraph was right on point as to what can WILL happen to an agent who doesn’t disclose. About 12 yrs ago I listed and sold an estate. Disclosure exempt right? The executrix was a surviving child who just happened to be a Commonwealth Judge. A nephew of hers had committed a crime at the house years earlier. I knew about it and she was candid with me from the start. She made it clear she wanted it disclosed. She gave me a great piece of advice that I have followed since “If you ever come before me or any competent judge for disclosing something weren’t sure about, we would be much more lienient and forgiving than if you didn’t disclose something you should have!” Her advice to me was to always play it safe. Disclosure was less stringient back then than today. 20 yrs in the business claim free and I remember her when I am reviewing disclosures !!