4 Things Sellers Are Not Required To Disclose

Every so often a house comes on the market that is said to be stigmatized. Most of the time the stigma is in the mind of one or two buyers, but sometimes it will be a serious issue for multiple buyers and can affect the marketing of the property. In 1995 the Arizona Legislature passed A.R.S. § 32-2156, the stigmatized property law. This law addressed when a real estate broker or seller must disclose information to a buyer relating to facts that may psychologically impact the home, such as a suicide or murder.

STATUTE (A.R.S. §32-2156)

By Arizona Stigmatized Law, sellers are not obligated to disclose that the property is or has been: 
  1. A site of a natural death or suicide; 
  2. A homicide or any other crime classified as a felony;
  3. Owned or occupied by a person exposed to HIV, or diagnosed as having AIDS or any other disease not known to be transmitted through common occupancy of real estate;
  4. Located in the vicinity of a sex offender.
In 2014, a court ruled that Arizona stigmatized property nondisclosures do not protect against affirmative misrepresentations. Lerner v. DMB Realty, LLC, 234 Ariz. 397, 322 P.3d 909 (Ct. App. 2014). Therefore, the law does not protect a seller who makes an intentional misrepresentation. For example, if seller is asked whether there has been a death on the property and seller knows that there was such a death, seller should not answer “no” or “I don’t know.” Instead seller should either answer truthfully or respond that seller is not legally required to answer the question.  
 
Information is for general educational purposes and should not be considered legal advice.