Ghosts and Meth
Buyer agents should always recommend that buyers obtain every type of inspection available including environmental issues (e.g. contamination, hazmats, lead, meth production residue, mold, radon, pollution, groundwater).
Buyers may then choose the inspections that fit their needs and wallets.
Regarding clandestine methamphetamine laboratories (cooking meth, Breaking Bad), there are numerous issues to consider:
SC Seller Disclosure: Question VI. includes "methamphetamine production"
http://www.llr.state.sc.us/POL/REC/RECPDF/Property%20Condition%20Disclosure%20Statement.pdf
Under SC case law and license law, real estate licensees disclose "material facts."
(19) fails to disclose in accordance with Section 40-57-137 any material facts concerning a real estate transaction;
DHEC has not promulgated clean up standards.
Buyers should review US DEA clandestine methamphetamine registry:
http://www.justice.gov/dea/clan-lab/clan-lab.shtml
SCR residential sales contract:
1. Seller repairs environmental issues.
2. Buyer inspects environmental issues (if desired).
3. Due diligence addendum, buyer can terminate even if seller would remedy environmental issues.
Regarding ghosts and other non-physical issues:
Psychologically affected property (ghosts, crime scene, news, suicide, natural death) is not a physical defect but licensees cannot know about the issue and then falsely answer a question about this issue.
(E) No cause of action may arise against an owner of real estate or licensed real estate agent of any party to a transaction for failure to disclose in a transaction:
(1) that the subject real estate is or was occupied by an individual who was infected with a virus or any other disease which has been determined by medical evidence as being highly unlikely to be transmitted through occupancy of a dwelling place either presently or previously occupied by the infected individual;
(2) that the death of an occupant of a property has occurred or the manner of the death;
(3) any off-site condition or hazard that does not directly impact the property being transferred; or
(4) any psychological impact that has no material impact on the physical condition of the property being transferred.
SECTION 27-50-90. "Psychologically affected" property disclosure exceptions.
(A) An owner is not required to disclose the fact or suspicion that a property may be or is psychologically affected, as described in subsection (B).
(B) A cause of action may not arise against an owner of real estate in a covered transaction for failure to disclose:
(1) that the subject real estate is or was occupied by an individual who was infected with a virus or other disease which has been determined by medical evidence to be highly unlikely to be transmitted through his occupancy of a dwelling place; or
(2) that the death of an occupant of a property has occurred or the manner of the death; or
(3) public information from the sex offender registry as defined in Article 7, Title 23.
(C) Subsection (B) does not preclude an action against an owner of real estate who makes intentional misrepresentations in response to direct inquiry from a purchaser or prospective purchaser with regard to psychological effects or stigmas associated with the real estate.
Sellers may want to consider disclosing anyway. Buyers who will not care will buy anyway. Buyers who will care might waste the sellers valuable marketing time because if undisclosed, the issue may be discovered weeks or months into the transaction. Those buyers will then not buy or seek other contractual escape hatches cost the seller valuable time and lost opportunity with other buyers.
For horrific news events, time tends to lessen the impact. Sellers might delay selling. Sellers might rent the property for a time period.