Murder, violent crime, natural death, neighborhood sex offenders, meth labs…would these be things the average home buyer might be interested in learning about if they liked a particular home? If so, don’t expect any help from a seller; these and a long list of other things, are not required to be disclosed in Georgia. Things required to be disclosed by home sellers in Georgia are puzzling; right down to the “must be disclosed only if asked” rule. This often surprises home buyers in Georgia; those using an inexperienced or no agent rarely understand the importance of making good use of the due diligence period. The reality is, home buyers shouldn't put too much faith in the seller disclosures.
The GA Real Estate Commission guidelines say:
The Commission frequently receives telephone calls asking how licensees should handle the sale or lease of property on which a heinous crime occurred or perhaps is said to be 
haunted. Textbooks generally describe such properties as "psychologically impacted." That term generally describes emotional factors rather than economic factors which may influence the decision of a prospective purchaser or tenant. Properties that were the scene of a murder, a rape, or a suicide or that were occupied by a person with a communicable disease or by a person who has had AIDS – all are generally described as psychologically impacted. Should licensees disclose such matters? The answer is sometimes "yes" and sometimes "no."
The law requires licensees to disclose material information about a property to prospective purchasers or tenants. Generally, the courts have held that whatever is material to the buyer or tenant is, in fact, material. That means that licensees must disclose anything that affects whether the buyer would want to purchase the property or affects what the buyer is willing to pay for the property'. When a defect is physical (for example, a leaking roof or unsound foundation), the issue is clear. Licensees must disclose. When the defect is emotion (for example, murder or ghosts), the answer varies.
What?? So in other words, if the buyer doesn't ask specific questions, there may not be any obligation for a seller to disclose everything about the house. There have been many "after closing" stories that drive home the critical importance of the due diligence period. Homes with past histories as meth labs, crack houses, scenes of violent crime including death, sex offenders....and in almost every case there was no recourse for the buyer.
There are however, cases where not truthfully disclosing defects on a seller's disclosure can be costly; oddly, many times times agents are punished as much as sellers. This is especially true when an agent attempts dual agency; representing both the buyer and seller. No home buyer, EVER, should buy a home without being represented by their own agent.
The Hank Miller Team dives into this and other issues that home buyers and home sellers are often unaware of in a number of posts ranging from HOAs to title insurance.
THE HANK MILLER TEAM COUNSELS HOME BUYERS AND SELLERS IN THE ATLANTA AREA WITH OVER 25 YEARS OF SALES AND APPRAISAL EXPERIENCE.
