I recently looked at a house where a lady had been strangled to death. This event happened a little over a month ago. Has anyone out there ever dealt with this kind of property? I am worried that it will be hard to rent this house. Here is some background on the situation: The property is owned by a lady who has 70 properties in the area. She has a manager who is the person that placed the victim in the home. They are motivated to sell this house on terms (CFD, L/O) or sell outright. The house is in fair to good condition, but it needs some repairs to erase the events that took place in the house. I do not know the terms of the deal yet, but I know that the owner wants to meet with me this week to: in her own words “make sure this will cash flow for you”. In other words, she wants to deal.
Here is in short, the story of the murder: Ex-boyfriend stalks woman; Ex-boyfriend breaks into house and damages woman’s personal items; Ex-boyfriend breaks into house again, neighbors hear struggle and woman is strangled to death; Ex-boyfriend arrested and awaiting trial for murder. The window that the Ex broke into is still boarded up and there is a human (the shape of a human) sized hole in the master bedroom. The victim is still getting mail at the property and there is still a few personal items. The seller has a man moving into the house this weekend on a month to month basis, so that should help a little. However, I asked many of my friends if they would live in a “murder” house, and most of them said no! Not if they knew about it. Do I have to disclose the event that happened in this house?
The owner of this house wants to sell about half of her properties on terms, so I really would like to start dealing with her, but is this the house to start our dealings with? Thanks in advance for any advice!
(A) An owner is not required to disclose the fact or suspicion that a property may be or is psychologically affected, as described in subsection (B).
(B) A cause of action may not arise against an owner of real estate in a covered transaction for failure to disclose:
(1) that the subject real estate is or was occupied by an individual who was infected with a virus or other disease which has been determined by medical evidence to be highly unlikely to be transmitted through his occupancy of a dwelling place; or
(2) that the death of an occupant of a property has occurred or the manner of the death; or
(3) public information from the sex offender registry as defined in Article 7, Title 23.
(C) Subsection (B) does not preclude an action against an owner of real estate who makes intentional misrepresentations in response to direct inquiry from a purchaser or prospective purchaser with regard to psychological effects or stigmas associated with the real estate.
People die all the time. Unless your state has a law to the contrary, why disclose it. In some of those 200 year old houses in the Northeast, tons of people died in the houses. Dying is a part of life. Before the days of big hospitals, people were born at home and died at home. What’s the big deal?
I had a friend who listed a house here in Florida where a murder occured. She to my knowledge could not find a buyer who would buy it for anywhere close to market value. I may be wrong but she said something about a “ghost law”, which is to disclose a murder that has taken place on the property.
There is a house that is really nice in my area of possible investment that had a lady who was murdered in it. It has been up for sale for quite awhile. My dad and I were driving around looking for some properties and when I mentioned the house he said “You don’t want to buy that, a lady was murdered in there.” That is how I found out.
So instead of thinking about it, I just forgot about it.
My advice would be that if you aren’t totally confident in the property then maybe you just need to skip it and find something better. No need to try and make something work if you aren’t sure about it.
As far as your questions go, I don’t know if you need to disclose the information to new tenants, but I would get rid of that human shaped hole…now that would be a little freaky!
If you want to deal with this lady though, you should explain to her that you aren’t sure about the property and would like to see the others. As a RE investor, you have the option of choosing the houses rather than being desperate to find something.
Posted by Lee Gartner on September 03, 2005 at 19:15:05:
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Actually Florida law is just the opposite. A law passed last year says that the fact that someone died in the house is immaterial does not have to be disclosed to buyers or tenants.
It seems that lately it is near impossible to get any valuable help on this board.
I’m not very good at my grammar so I won’t even try there, but thanks for the good laugh. (please don’t correct my grammar)
Buy it like she said, so it makes sense for you. Someone obviously already has agreed to live there I’m sure you will find more. At this point its a don’t wanter write an offer with some very nice terms for yourself and go from there.
If the buyers of some of the homes I sold them had any clue what the house used to look like or what happened in them before I bought it, they probably wouldn’t buy it from me either.
I’ve bought crackhouses. I’ve bought houses full of rats and snakes and spiders. I’ve bought houses where we threw out over 5,000+ gay porn magazines -stacked to the ceiling in the living room. I’ve bought houses where people have died (no murders yet) - old lady died of a stroke. I bought a flophouse earlier this year and ended up having to get the police out to deal with some leftover drunken floppers. I even bought a house that is haunted, at least my tenants keep telling me that they hear voices and see door slam - I haven’t seen anything yet.
If people want to be superstitious about a house’s past, that is their problem.
Posted by Chuck Rosenberg on September 05, 2005 at 10:31:30:
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I was looking over your post again. You said that she has some other properties that you are interested in. Why don’t you put together a little “package” of houses with this one included as one of them.
She gets to get rid of one of her problems and you get some of her nice houses to go along with the deal
The people I rent to are low-income hispanics. I hate to talk in stereotypes, but I guess many of those type of people are superstitious.
As for the flophouse, it’s a place where people go to sleep it off after a night of partying, drinking, drugs, etc. The owner was letting his friends just come over and sleep for the night.