Stigmatized property is a dwelling, a place of occupancy or residence, shunned for the occurrence of tragedy that weakens its market potential. The murder of Ron Goldman and Nicole Brown Simpson at her home on Bundy Drive shocked the world, gripped the nation and horrified the neighbors. If you have ever thought about buying or renting a home and wondered about its history, consider the possibility that it could be a stigmatized home. A stigmatized property is one with psychological or emotionally undesirable factors in its history that lower the value for reasons that have nothing to do with the physical state of the structure. ‘…that long black cloud is comin’ down, The lights are on but no one is home. Any real estate agent asked such a question should answer that they are unable to answer that question. Essentially Stigmatized properties take longer to sell.. Sell at a lower price. Reference: Code 17-10-101. Whereas buyers are concerned with affordability, resale value, location and condition, architectural style, interior design and purpose, sellers are more concerned with market value, profit and price. Sometimes, a new homeowner may be hounded by debt collectors trying to contact the previous homeowner. “Stigmatized properties are homes where a real or rumored event occurred that didn’t physically affect the property but could adversely impact its desirability.” A seller must disclose in writing that there are no hidden defects in the home. Earn Transferable Credit & Get your Degree. However, a sellers cannot knowingly mislead a buyer when asked about such an event. Whitepapers are a detailed, or authoritative report, that helps solve a problem. It is the responsibility of buyers to discover these facts. Perception and market timing are the challenges of selling stigmatized property. courses that prepare you to earn All other trademarks and copyrights are the property of their respective owners. Violence is a product of human behavior. However, don’t count on the sellers revealing it themselves. This includes murder, suicide, criminal activity, or even nearby sex offenders. Stigmatized homes are said to be “psychologically impacted” and some people refused to reside within them under any circumstances. The homeowners had to install a metal fence to keep people out! Even though the illness isn’t communicable, a buyer could be irrationally scared of living within the home. credit by exam that is accepted by over 1,500 colleges and universities. Reference: Statute 20-329cc-ff, Delaware law doesn’t make the seller disclose any facts surrounding a property which have a psychological impact. Phenomena: This is the one people usually think of when they think of a stigmatized property. The stigmas identified with property ending in illness, murder, trauma and death are vast and inclusive of suicide, HIV and AIDS, drug activity, criminal mischief, cult activity, kidnapping, pedophilia and psychiatric behavior. Oklahoma finds that any fact which stigmatizes a property (such as a murder or suicide) is not a material fact and does not have to be disclosed. In the real estate industry there is the concept that a property can become stigmatized; that is that a stigma of some sort becomes associated with it which impacts its value in a negative way. However, the aforesaid standard Property Disclosure Statement approved by the Real Estate Board does not contain any mention of circumstances which would or could render a home a stigmatized property. So, marketing and disclosure are its challenges. Did you know… We have over 220 college Stigmatized properties are homes that some buyers find undesirable due to emotional or psychological reasons. This means that it’s the buyers’ responsibility to uncover any sort of past deaths or psychologically damaging facts about the property. In other words, let the buyer exercise due diligence, discover his woes and get the property inspected. Additionally, an agent can only provide disclosure of such facts that the seller authorizes. It’s important to note that a seller or real estate agent cannot lie when asked about stigmatizing facts or else they would be liable for fraud. Someone dying in a home is a very common example of an event which stigmatizes a property. Maryland’s laws state that a real estate agent cannot be held liable for not disclosing “a homicide, suicide, accidental death, natural death, or felony” that took place at the property because they are not considered material facts. State, meaning that sellers avoid a potential buyer inquiries about it it or not, but there some. 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