Can You Sell a House Rumored to Be Haunted in Connecticut?

 Posted on August 08, 2025 in Real Estate Law

As if buying and selling real estate is not complicated enough, when it comes to seller disclosures, just how far are sellers required to go? While it may sound like an unlikely problem to have, what if you find that your dream home is seriously haunted, and the seller knew, but did not disclose that information? Except for four states in the U.S., sellers are under no obligation to disclose that their property comes with a haunted past.

New York, New Jersey, Massachusetts, and Minnesota do have legal provisions regarding the disclosure of a haunted house for sellers. A famous 1991 New York case, Stambovsky v. Ackley, allows buyers to rescind a sale if the seller has ever publicly acknowledged or promoted the home as haunted, yet did not inform the buyer.   

In this particular case, the seller of a home had openly boasted to others about the ghosts in the house, but did not mention it during the sale. As a result, the court allowed the buyer to rescind the sale. Whether you are a believer in ghosts or a total skeptic, the question arises more often than you might think, especially in a state as old and history-rich as Connecticut.

From a home with creaky floorboards to Victorian mansions with chilling legends, these properties are known as "stigmatized properties" in the state. This designation can raise legal and financial concerns for buyers and sellers. An experienced Stamford, CT real estate lawyer can help you navigate this unusual situation.

What Is a Stigmatized Property?

A stigmatized property is one that is supposedly haunted or has had a death, murder, or suicide on the property. It is a property with a non-physical stigma, which includes paranormal activity. The stigma is not tied to any physical defect, but can influence marketability and buyer perception. Although Connecticut sellers are not required to disclose any of these "stigmas," if a potential buyer explicitly asks them, the seller must answer truthfully.

Failure to disclose information regarding a stigmatized property when asked directly can affect the legality of the sale. Disclosures by sellers in the state are only required for material defects that could affect the health, safety, or value of the home. The general principle of "buyer beware" applies in this situation.  

As a Seller, Should You Disclose if Your Home Has a History of "Haunting?"

If the community is generally aware of the "haunting" of the home, or if it has ever been the subject of media attention, it is better to disclose this to a potential buyer voluntarily. If the buyer directly asks questions like "Have there been any deaths in this house?" or "It’s an old house, is it haunted?" (even jokingly), the seller must answer truthfully.

If the seller has ever made a public claim (even on social media, and even as a joke) that the house is "haunted," then that must be disclosed to a potential buyer. Even if the "haunted house" exists only in rumors, always be honest if asked. If the haunted house rumors are well-known throughout the community, consider adding a "stigmatized property" disclaimer to your disclosures, and work with a real estate attorney to ensure you are in compliance with the law.

Can a Haunted Reputation Affect Property Value?

Appraisals typically do not account for ghost stories, but buyer hesitation can impact any potential offers. A haunted reputation could potentially deter interest in the home, although there are buyers who actively seek out haunted homes. In Connecticut, selling a home with a ghost story attached does not have to be daunting; you are not obligated to share every spooky rumor, but you should seek advice to know what must be legally disclosed.

Contact a Fairfield County, CT Real Estate Lawyer

If you are the owner of a so-called "stigmatized" property and want to sell, your first step should be to speak to a knowledgeable Stamford, CT real estate attorney from Law Offices of Daniel P. Weiner who can help you ensure there are no missteps that could cost you later on. Call 203-348-5846 to schedule your free consultation.