The "New York Stigmatized Property Law"

The "New York Stigmatized Property Law"

In New York State, the rule regarding disclosure of events such as murder, suicide, or hauntings is governed by what is known as the "New York Stigmatized Property Law" (New York Real Property Law Section 443-a).

No Obligation to Disclose:

• Sellers and real estate agents are not legally required to disclose if a property is stigmatized due to events like murder, suicide, or paranormal activity.

Buyer's Right to Inquire:

• Sellers must answer truthfully if directly asked by the buyer or buyer's agent. If a buyer specifically inquires about such events, the seller or their agent must respond honestly if they have knowledge of it.

Material Defects:

• The law differentiates between psychological stigma and material defects. Physical issues that affect the property's value or safety must still be disclosed.

Ralph’s Take

The law is meant to protect sellers and agents from having to disclose information that might not be seen as directly affecting the value of the property, while also ensuring that buyers can receive honest responses when they seek specific information. For sellers, it’s essential to be aware of the obligation to answer honestly if questioned about the history of the property in relation to these specific stigmas.