Disclosure-Stigmatized Property

Can a REALTOR be held liable for failing to disclose to a buyer that a murder or suicide took place on a property they have listed? Answer: In general, a real estate agent has an obligation to disclose any latent defects to the buyer. An agent must also disclose any other fact of which they have knowledge that could be material to the buyer's decision to purchase the property. In the case of a murder or suicide, this event would probably not effect the physical condition of the property and would not constitute a latent defect. It could, however, be considered to be a material fact to some buyers. Currently there is no case law in Ohio holding a broker liable for failing to disclose a murder or suicide. However, because this could be material to some buyers, to avoid the potential for a claim against both the seller and agent, it may be prudent for an agent to err on the side of caution and to disclose the fact of a murder or suicide to a buyer. The agent should, of course, discuss this issue with the seller before doing so.