Occasionally, an occupant dies on their property. Considering the median age of a house in Alameda is about 50 years, there’s a good chance someone has passed away in a home. For many people, being able to die at home is their final wish.
California is the only state that requires a recent death in the home be disclosed. South Dakota and Alaska require realtors to disclose any violent death on the property, such as murder or suicide. Connecticut, Delaware, Georgia, New Hampshire, New Jersey, and South Carolina only require it if someone asks.
A death in a home or on the property can affect real estate value, depending on how recently it happened and the manner of death.
If you are a seller, when must you disclose a death?
If you’re a seller, when do you disclose a death? First, it must have occurred in the last three years, including natural deaths, accidents, and homicides. If a buyer asks directly if a death has occurred on the property, the agent must answer honestly.
Second, was the deceased an occupant of the property? If not, you are not legally obliged to disclose it, but you must be honest if someone asks.
Third, the death occurred in the last three years. Though even if the death was long ago, you need to answer honestly if someone asks. Some potential buyers are sensitive to the issue and usually ask the agent the first time they enter a home.
Lastly, the only exception is if the death was related to HIV or AIDS. It’s also important to note that it’s not just when a home is being sold that a death disclosure is required—landlords also must disclose to tenants any deaths that occurred within the last three years on the property.
Are there situations where the seller may want to disclose a death that occurred on the property more than three years ago, or where the deceased was not an occupant of the property? Yes. Even if the death doesn’t meet all the criteria to warrant a “yes” answer on the disclosure form, you may want to disclose the death if it is particularly notorious or has stigmatized the property in a way that may have affected its value or desirability.
How does a seller disclose a death on the property?
Use the Seller Property Questionnaire (SPQ) to make the disclosure. Section 6A asks specifically, “Are you aware of…within the last 3 years, the death of an occupant of the Property upon the Property.” Check “Yes” and then explain it later in that section.
An addendum may also be used if disclosures have been completed, and the home is already listed for sale when the death occurs.
Lastly, it’s a good practice for the listing agent to include the information in the Multiple Listing Service (MLS) private remarks section.
What about ghosts?
While California doesn’t require disclosure of alleged hauntings, you might want to disclose if supernatural activity causes physical damage (like noise or structural issues). However, if someone asks, the seller needs to answer truthfully.
Remember, failing to disclose a death on the property could become a legal problem for the seller and the seller’s agent. And in my experience, if the agent doesn’t tell you, a neighbor will!
Liz Rush Realtor® DRE #01445284 can be reached at [email protected]. Her website is LizRush.com.
