Understanding Massachusetts Real Estate Disclosure Laws for Psychologically Impacted Properties
When buying or selling real estate, it’s essential to know what information must be disclosed to potential buyers or tenants. While most people are familiar with the need to disclose material issues like structural damage or zoning violations, one aspect of real estate law that often raises questions involves “psychologically impacted” properties.
In Massachusetts, Chapter 93, Section 114 of the General Laws outlines specific guidelines regarding the disclosure of properties that may have a “psychological impact” on potential buyers. But what exactly does this mean, and what is required from sellers and real estate agents?
What is a Psychologically Impacted Property?
A “psychologically impacted” property refers to real estate that may carry certain non-physical stigmas, which might influence a buyer’s or tenant’s decision to purchase or rent. These stigmas do not affect the structural or physical integrity of the property but can still have a psychological effect.
Examples of psychological impacts include:
– Disease (HIV/AIDS): A property that was previously occupied by someone suspected or known to have Human Immunodeficiency Virus (HIV), Acquired Immune Deficiency Syndrome (AIDS), or other diseases that are not easily transmitted through normal living in a dwelling.
– Crime (Felonies, Suicides, Homicides): Properties that were the site of a felony, homicide, or suicide.
– Supernatural Phenomena: Properties that have a history of alleged paranormal or supernatural events.
Is Disclosure Required?
According to Section 114, the fact that a property is psychologically impacted is not considered a material fact that must be disclosed during a real estate transaction. This means sellers, lessors, real estate brokers, and salespeople are not legally obligated to inform potential buyers or tenants if the property was the site of:
– A disease such as HIV/AIDS.
– A felony, suicide, or homicide.
– Paranormal or supernatural events.
Legal Protections for Sellers and Agents
The law provides protection to sellers, landlords, real estate brokers, and agents from legal action if they do not disclose such psychologically impacting events. Buyers or tenants cannot sue based on the lack of disclosure about these stigmas.
The Importance of Honesty
Despite the protections provided by Section 114, it is important to note that misrepresentation of facts or false statements are still prohibited. Sellers and real estate professionals cannot lie or provide false information about a property. For instance, if a buyer specifically asks if a crime occurred at the property and the seller or agent knows the answer, they cannot falsely claim otherwise.
This maintains a balance between protecting sellers and agents from having to disclose non-material facts while ensuring that any inquiries are answered honestly.
What Buyers Should Know
If you’re a buyer or tenant in Massachusetts, it’s crucial to understand that psychological impacts may not be disclosed to you unless you ask specific questions. If the history of a property is important to you—such as whether a serious crime took place or if there are rumors of hauntings—it’s advisable to conduct your own research or directly inquire with the seller or agent. They are legally obligated to answer truthfully but are not required to volunteer such information without prompting.
