Do you need to tell potential buyers someone died in your house? What Illinois law says

If walls could talk, some sellers might want them to sign a non-disclosure agreement.

In real estate terms, homes with dark histories are called stigmatized properties.

Occurrences such as murder, suicide, violent crimes, alleged hauntings or being occupied by a notorious owner can psychologically impact, or stigmatize, a property, according to the National Association of Realtors.

But what legal obligations do sellers and brokers have to disclose these facts to potential buyers? These vary by state.

According to the Illinois Real Estate License Act, brokers are not legally required to disclose deaths or information not considered to be material fact.

The definition of material fact in the context of Illinois law does not include stigmas, such as deaths, because stigmas are subjective — what may put off one buyer could be easily overlooked by another.

Betsy Urbance, Illinois REALTORS General Counsel and Vice President of Legal Services, says brokers “have no legal duty to disclose facts that have no direct and detrimental physical impact on the property,” citing Section 15-20 of the Act.

Urbance notes that agents have a duty to be honest, however, so if a potential buyer inquires about the history of a home, they should provide that information if permitted to do so by the seller.

Real estate and mortgage professionals note that an upside to stigmatized properties is the potential to purchase them at a favorable price.

Stigmas that are widely, publicly known can make it difficult for owners to sell a property, and with lower demand, it may be possible to negotiate a deal.

Potential buyers concerned about whether someone died in a home should establish if context matters to them.

More benign home deaths are becoming increasingly common, according to a 2022 study published in the New England Journal of Medicine.

In 2017, 31% of Americans died at home, marking a shift away from hospitals and care facilities and making it the most common site of death for the first time in decades, the study said.

For potential buyers who are concerned about a home’s history, it doesn’t hurt to do your research and ask questions.

Can you bury your beloved pet in your yard in Illinois? Here’s what the law says

Mother, three daughters found shot and killed in Illinois home, cops say. ‘Massacre’

Babysitter stabs 1-year-old and 4-year-old multiple times in Illinois, police say