In one of the most often cited cases regarding the disclosure of haunted houses, the Supreme Court of New York ruled in Stambovsky v. Ackley, 169 A.D.2d (NY App.Div.1991) that a seller is exempt from disclosure except in cases of fraud or misrepresentation. The owner had advertised the home as being haunted. It was featured in Reader's Digest and included in a five home walking tour of the city. Several members of the family reported the presence of polergeists (yikes!) and of receiving gifts from them!
Upon entering into the contract, the seller (nor her agent) told the buyer about the home's history. Buyer, from out of town was unaware. Once he became aware, he wanted to rescind the contract . The court ultimately ruled mostly in his favor.
Interesting lesson here....disclose, disclose, disclose!!!!
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