One of the clauses we have included in an offer is;
The Seller warrants to the Buyer to the best of the Seller’s knowledge and belief that the subject property has not been stigmatized.
We use this clause in order to provide peace of mind for our clients as stigma doesn’t fall away after a property exchanges hands. Stigma has a lingering effect, even though it may have nothing to do with the condition or the features of the property. Stigma, like a big dark cloud can hang over the property and negatively impact a property. A stigmatized property can therefore be perceived as being of less value than it should be.
Are you wondering what events or circumstances might cause a property to be considered stigmatized? Here are some examples that we have come across;
- Natural Death
- Murder
- Suicide
- Haunted
- Illness or contagious disease
- Growth or manufacturing of drugs
- Brothel / Bath House
- Environmental (oil spill or mould)
From time to time new home owners find out information from the neighbours long after the have purchased the property that they should have had prior to purchasing the property. We strive to obtain as much information as possible up front and include the above clause in our offers in our offers to protect our folks from potentially purchasing a stigmatized property.
