Disclose or Don’t Disclose? Stigmatized Properties and Fair Housing Questions That Can Trip You Up.

Stigmatized properties are homes that some buyers find undesirable due to emotional or psychological reasons. Typically, homes are stigmatized when emotionally upsetting events such as murder, suicide, and sexual assaults occur on or near the property. ​

A home that is alleged to be haunted or contain paranormal activity is likewise considered to be stigmatized. Stigmatized homes are said to be “psychologically impacted” and some people refuse to buy them under any circumstances.
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In Georgia, no disclosure of a stigma is required unless the buyer (or buyers' agent) specifically asks for the information.  For example, the seller does not need to tell a buyer if a diseased person ever lived in the home, or if a homicide, felony, suicide, or any other death occurred there (Georgia Official Code Annotated §44-1-16(a)(1)). Additionally, a seller in Georgia is not required to let a buyer know if a registered sex offender lives in the area (Georgia Official Code Annotated §44-1-16 (b)).

However, Sellers must answer any direct question a buyer asks about these things honestly (Georgia Official Code Annotated §44-1-16(a)(1)). Curious buyers should ask the seller directly about these things, as they are compelled to answer honestly.
In Georgia, Sellers are not required to complete a Seller’s Property Disclosure.  If they do provide a Seller’s Property Disclosure, there are things about the property the seller does not need to disclose and, in some cases, is not allowed to disclose to a buyer. 
Sellers do not need to disclose any condition of the property that a buyer would discover upon a reasonable inspection. This would include obvious things like holes in the roof, fire damage or similar, clearly noticed things.   Sellers are not allowed to disclose anything that would violate the Fair Housing Act, such as the racial demographics of the neighborhood.  


Fair Housing Act 
Stay on the right side of the Fair Housing Act, which prohibits housing discrimination based on race, religion, sex, disability, familial status or national origin. Watch out for the following Fair Housing questions that can trip you up:

1. Is this a good place to raise a family?  Seems innocent enough, but the answer you give can be viewed either as anti-kid or pro-kid.  Either way, the answer can violate the Fair Housing Act.
   
2. What’s the neighborhood like?  This is a landmine question.  It comes dangerously close to redlining – discrimination in which home buyers or renters are steered toward or away from neighborhoods based on the color of their skin.  Don’t hesitate to invoke the Federal Fair Housing Act to say you can’t answer under Federal law, but the U.S. Census website has an enormous amount of information. 
   
3. Is this area safe?  It is wise to not answer.  Again, your answer may be construed as racist or as elitist. Instead, it’s better to direct the prospect to local web sites that show crime statistics. 
   
4. How are the schools here?  Again, be careful not to let an answer be construed as a coded message.   Instead, direct the prospect to a website that ranks schools.