Ethical and Effective Legal
Maddox, Segerblom & Canepa

Stigmatized Properties Present a Challenge in Nevada

Property sellers and real estate professionals face a tough decision about disclosures when selling a stigmatized property. 

What Is a Stigmatized Property?

A property is stigmatized when buyers find it undesirable due to emotional or psychological reasons. Conditions that might stigmatize a property are:

  • Murder or suicide: If someone was murdered or committed suicide in a house, it may be stigmatized.
  • Public intrigue: If a property was a famous filming location or is recognizable due to a sensational crime, curious onlookers may become a nuisance to homeowners.
  • Paranormal activity: A house may be stigmatized if it has a history of paranormal activity or haunting.
  • Criminal stigma: A property may be stigmatized if someone has committed a crime in the house, such as the production of methamphetamine.

What Should be Disclosed?

When a property is stigmatized, it can be much more difficult to sell. It can take up to 25% longer to sell and have a lower sales price than similar properties. Therefore, it is usually in the seller’s best interest to keep conditions that might cause the property to be stigmatized under wraps. Fortunately, Nevada law does not require disclosure of anything about a property that is not material to its condition. 

In Nevada, Sellers generally do not have to disclose murders, suicides or deaths that occurred inside the property, paranormal activity, or criminal activity that took place inside the property. The only exception to Nevada’s non-disclosure law is if the property’s condition caused someone’s death. Further, they must disclose if methamphetamines have been produced at the property unless the Board of Health has certified that the house is safe for habitation.  However, the Seller and Real Estate Agent should not like about any of these issues if directly asked. 

When Is Disclosure Best for the Seller?

Although Sellers are not required to make disclosures about stigmatized property except under specific circumstances, occasionally disclosure is in the seller’s best interest. If a buyer is likely to discover the stigmatizing condition, it may be better for the seller to disclose the condition upfront to avoid surprises that might derail the sale. A Nevada real estate lawyer can answer questions about what disclosures they must make or what conditions they should disclose.  

What Our Clients Say

My family and I are thankful to Maddox, Segerblom and Canepa for their assistance during a three year case regarding construction defects to our home. We are truly appreciative of their knowledge, determination and assistance during this process. They were always courteous, and available to answer any and all of our concerns and questions. Thank you for the wonderful resolution. Many thanks to you and your staff.

Frances Castelli

We used Maddox, Segerblom & Canepa to represent us in a legal suit re problems in construction on new properties that we purchased from a developer.

We were very pleased with the representation provided by this law firm. They were fully communicative, responsive to our questions and were very knowledgeable about the issues that required resolution. Even after we reached a resolution, they have been responsive in making sure to point us in the right direction for help with repairs that are required.

We would recommend them to others with similar issues that require legal help.

Atam & Margo Lalchandani

Maddox, Segerblom & Canepa did a FANTASTIC job in our construction defects case. I interacted with several people from their office throughout our 2 year litigation. Their staff is friendly, knowledgeable and always prompt about getting back to you when you have questions/comments/concerns. I especially enjoyed working with Darcy, Ardea, Eva, and Sandra. Being part of a lawsuit is no fun for anyone, but if you have to be a part of one, I can’t say enough positive things about this firm!

Victoria Fox

The law firm of Maddox, Segerblom, and Canepa were amazing to work with. They were thorough and always available for any questions we had. We worked a lot with Sandy who was always professional, friendly, always on time for appointments and just a great person to represent this firm. We have never been involved in a law suit before and they made it comfortable for us. We appreciate the hard work the lawyers and people who work for the firm did and would recommend them.

Becky Loudenburg
Receive our free eNewsletter with the latest legal news.