Selling a house with a ghostly reputation could turn into a legal nightmare for estate agents and homeowners if buyers start asking awkward questions.
With Halloween approaching, property lawyer Jordan Kluth, of John Fowlers, has examined whether sellers must reveal a property’s supposedly haunted past.
The good news? There is no specific legal requirement in England to declare that a property is haunted.
Standard conveyancing forms ask about boundaries, building work, disputes and services. However, they contain no box for declaring a resident ghost or troublesome poltergeist.
But sellers should not assume they can simply bury a property’s spooky history.
Kluth said: “There is no specific question on the standard conveyancing forms asking whether a property is haunted, so sellers should not expect to see a box asking them to declare any ghosts or paranormal activity.
“The position in England is different to some of the well-known cases we have seen in the US. What is important is that a seller does not misrepresent the property or give an untrue answer to a buyer.”
When ghost stories become a legal nightmare
The issue centres on caveat emptor, the traditional principle of buyer beware.
Buyers must generally investigate a property’s condition and history before committing to a purchase.
However, sellers must answer enquiries truthfully. They must also avoid providing misleading information.
Kluth warned that questions about paranormal activity could create complications.
“For example, if a buyer specifically asks whether a house is haunted and the seller dishonestly says no, despite there being reports that the property is haunted, that could potentially become an issue,” he said.
“The safest approach is always to answer enquiries truthfully and speak to your conveyancer if you are unsure about what information should be provided.”
Estate agents also have legal obligations when marketing properties.
Consumer protection rules prohibit misleading statements and the omission of material information that could influence a buyer’s decision.
Whether a property’s haunted reputation falls into that category depends on the circumstances.
However, agents should avoid making claims they cannot substantiate or dismissing genuine concerns without checking the facts.
No need for a ‘ghost included’ sign
Kluth advised sellers to seek professional guidance if a property has an unusual history.
“Sellers should consider what they think a buyer would want to know before purchasing the property and make sure they give truthful answers to any enquiries,” he said.
“If there is something unusual about the history or reputation of the property and you are concerned about whether it needs to be disclosed, you should seek advice from your conveyancer before answering questions.”
For agents, the lesson is simple. A property’s spooky reputation might not require a formal declaration, but misleading a buyer could have serious consequences.
So there is no need to put “ghost included” on the For Sale board this Halloween.
But if a buyer asks whether something goes bump in the night, an honest answer is preferable to a legal dispute that comes back to haunt everyone involved.
Comments (1)
Some years ago when the Property Misdescription Act had just come out, I was instructed on a semi-detached, medieval cottage in a village not far from Newton Abbot. The lady who owned it told me in passing that the house was haunted by 3 people, two of them friendly and one a mysterious apparition of a man who appeared at the bottom of her bed some nights. She was a totally rational person and said she had got used to it, but thought I should know as some people were sensitive to such issues. She then told me that the other half of the cottage had been exorcised by the Anglican priest a few months earlier. A little bit concerned I spoke to our local Trading Standards officer and had a fascinating conversation. We decided that there was no need to declare the hauntings because they were “immaterial” rather than “material” matters! However, I decided that it would not be right to say nothing. It did put some would be buyers off, but most people were not particularly worried. But the big change came with the new Material Information Regulations. Would these hauntings adversely affect some people’s transactional decisions? The answer is clearly yes from evidence and NTSELAT said that it would be prudent to declare the hauntings, especially as part of the building had been examined by the Church authorities. What a court would say deliberating a complaint, heaven only knows!