The occurrence of a murder-suicide in a home does not create a material defect that must legally be disclosed to a potential buyer, the state Supreme Court ruled Monday in a case of first impression.
“Regardless of the potential impact a psychological stigma may have on the value of property, we are not ready to accept that such constitutes a material defect,” Justice J. Michael Eakin said for the court in a case out of Delaware County. “The implications of holding that nondisclosure of psychological stigma can form the basis of a common-law claim for fraud or negligent misrepresentation, or a violation of the UTPCPL’s catch-all … are palpable, and the varieties of traumatizing events that could occur on a property are endless.”
