Someone’s Got to Do It: Are You Holding the Deed to a Haunted House?

Maybe you’re looking at homes you might want to buy. Maybe you already hold a deed. In any case, your late October thoughts may turn to spirits, and ghosts, and all kinds of past matters that haunt homes.

It happens to the best of us — even well-known politicians have to deal with such matters, as we see in the case of Nancy Pelosi’s home.

Yes, There Really Was an Exorcism at the Pelosi Home

Nancy Pelosi, former Speaker of the House of Representatives in Congress, had an exorcism done at the family home in San Francisco late last year. The event was reported in The New York Times.

Msgr. Stephen Rossetti, who is affiliated with the Catholic University of America, told the Catholic News Agency that “to expel demons from a place does not require any special faculties for a priest.”

The demons at issue were distress and fear. There had been a serious attack on Pelosi’s spouse, Paul Pelosi, inside the home. (The attacker was charged and convicted in federal court.)

According to Church representatives, Catholics may contact priests to request exorcism services after evil actions have happened in a home. An exorcism service includes two steps:

• Calling for the divine presence to return to the home; and casting out demonic elements.
• Blessing the home with prayer and holy water.

And this is actually quite common. Many exorcism requests come into the Catholic Church every year. Most aren’t from famous people. When they sell their homes, will they tell buyers what happened? Must they?

Trouble in the Deed’s Past: “Stigmatized” Property

Homes that were once crime scenes could have a “stigma” that homeowners need to disclose when they go to sell. If you’re shopping for a home, you may not care about what happened in a home’s past. Still, you might have reason to ask if the incidents impact the desirability of the property.

Tales of haunted pasts can make a home hard to sell, and when that happens, listing prices may need to come down. Potential buyers might reasonably request a discount. Homes that were the sites of especially hideous crimes or accidents sometimes get torn down, to give those in the area closure.

Granted, sometimes odd events of the past can be selling points. But even homes once owned by famous people, or sites of well-known film scenes or other celebrated events, can be problematic. Buyers could assume gawkers would be attracted to the home.

The best practice? Communication from sellers, to tell prospective buyers what the sellers themselves would want to know if the shoes were on the other feet. In short: the reason for disclosure laws is to make sure a buyer understands the condition and marketability of the home, and other facts with a material bearing on a purchase decision.

Sellers, take note: Your agent has a fiduciary duty to work in your best interest when representing you in a real estate deal. But agents also must follow state laws on reasonable disclosure of information that’s material to a home’s value.

What the Law Says About Hauntings

Deaths of natural causes do happen in homes. Those events don’t turn a home into a stigmatized property. In most states, and in most situations, home sellers have no obligation to tell buyers about incidents that occurred in or around the property.

The seller would have to disclose the matter if the past tragedy is connected to a present hazard. Thus, if a death happened and the death relates to a health risk in the home, the seller likely has to disclose what occurred. Potential buyers must also be informed of any fire-related deaths. 

In some states, the seller needs to disclose any deaths in the home that occurred in recent years.

Lack of disclosure, in situations where disclosure is mandatory, can lead to lawsuits. As for what incidents must be disclosed, laws vary by state. You might be in one of the laid-back states that don’t require sellers to mention past crimes, suicides, or supernatural phenomena. Disclosure laws in the state where the home exist are controlling. Check the law.

New York has strong disclosure requirements. It also has a famous haunted house case in its legal history. They call it the Ghostbusters Case.

In the 1991 case, named Stombovsky v. Ackley, the seller had actually promoted the home as a haunted house to tourists for years. So, the seller created the “stigma” but the buyer had no idea about that.

Nor could the “stigma” have been found during a home inspection.

So, it’s not that the court found the home haunted. The court thought the seller may have compromised the home deed’s marketability. And the seller should have been up front about that with the buyer.

The takeaway from Ghostbusters? Even if your state law says there is no reason to disclose “psychological” or “paranormal” factors, buyers could still sue. And sometimes, courts do agree with buyers who insist that sellers should have provided disclosures about a past tragedy in the home.

So, acting in the client’s best interest, a seller’s agent may reasonably ask the seller for permission to disclose.

If you’re buying a home and have concerns, your agent can ask questions of the seller’s agent. States usually let the seller’s agent keep mum on any non-material facts. But even in states where sellers don’t have to disclose certain facts about the home, they may not answer your direct questions in misleading ways.

Buyers, take note: Don’t let a past owner’s debt collectors haunt your title. A professional title search before closing can bring debts, liens, and court judgments to light.

If you have reason to think you were misled, or are worried about mistakenly misleading others, consult a local attorney for guidance.

When You Hear About a Haunted Home…

There’s likely an ordinary explanation. Some homes are older and the floors and stairs creak. Wind can cause noises in the walls by shifting them slightly over time. Any visible apparitions could have a physical cause, such as gas or water leaks. An experienced home inspector can provide explanations for you.

If you’re a deed holder, stay on top of routine maintenance and safety checks to avoid scary situations. And may your home always have good spirits.