Psychologically Affected Properties.
For business reasons, brokerages may want to go beyond the state law below.
Listing brokerages get seller to disclose upfront.
Buyer brokerages recommend buyers hire private investigators to check out the property and surrounding area.
All brokerages want happy clients and customers for referrals and repeat business.
Some buyers will care.
Some buyers will not care.
Disclosure helps sellers by weeding out buyers that care because when these buyers find out weeks or months into the deal, these buyers may start searching for a contract escape hatch or terminate anyway and take chances the seller will not sue them.
Sellers want to focus on buyers intent on closing.
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.