What Is a Stigmatized Home? What does the law say you have to disclose?
Toxic mold is one of many issues that can stigmatize a house. Other possible stigmas include homes that have been the setting of a suicide or murder, felony, accidental death, or even the suspected presence of ghosts. Other bizarre circumstances can also influence potential buyers, because stigmatized houses often represent psychological rather than physical prejudices.
Disclosure laws vary by state, so if you wonder why you are getting a steal, ask the owner. The seller may be required to tell you only if asked. In other states, full disclosure requires that sellers inform buyers of problems even if they’re not specifically asked. Whether you are a buyer or seller, it will be worth your time to learn your state’s laws for disclosure.