What is a stigmatized property?
The National Association of Realtors define a stigmatized property as "property that has been psychologically impacted by an event which occurred, or was suspected to have occurred, on the property, such event being one that has no physical impact of any kind." Usually, a property is stigmatized due to an emotional or unsettling event taking place on the property such as a murder, suicide, or sexual assault. Properties can also be stigmatized due to a notorious previous owner or if the property has a reputation in the community for being haunted or being host to paranormal activities.
Duty to disclose.
Stigmatized property laws vary by state. Most states do not require the seller to disclose events which may have stigmatized the property, making it the responsibility of the buyer to discover these facts. Some states, however, do require disclosure if a death occurred on the property due to a condition of the home.