Do Home Sellers in Indiana and Kentucky Have to Disclose Hauntings or Tragedies?

As the wife of a contractor, I’ve spent the first 15 years of our marriage buying, flipping, and living in houses while searching for our next project. I’ve encountered all sorts of strange things along the way. One memorable experience was when we toured a beautiful home in Boonville. When we stepped into the backyard, we were greeted by multiple platforms and it was completely covered in netting. My imagination ran wild with all sorts of possibilities, but the truth was even more surprising: the previous owners had housed multiple big cats!

We sometimes learned the backstories of the homes we toured, but more often than not, the houses kept their secrets. Have you ever wondered about the history of your own home before you moved in?

If You Know Your House is Haunted, Do You Have to Disclose That When Selling It?

Recently, a friend of mine posed an intriguing question on Facebook: "If you know a house is haunted, do you have to disclose that when selling it?" It’s a loaded question, right? Some people believe in ghosts, while others don’t. Plus, everyone has different sensitivities to the supernatural—what one person might find unsettling, another might completely overlook.

And sometimes homes are tied to tragic events, like a loss of life. My brother unknowingly bought a home that was the site of a tragic suicide. He only found out when a neighbor mentioned it to him. For him, it wasn’t a big deal, but I couldn’t imagine living there. It’s interesting how we all have different thresholds for what we can accept in a home. What about you? How would you feel in a situation like that?

Do Sellers Have to Disclose a House's History in Indiana and Kentucky?

There’s definitely a legal angle to consider. When selling a house, sellers are typically required to disclose any known issues with the property to potential buyers. But what about hauntings or tragedies? I reached out to my mother-in-law, Elaine Sollars, a realtor with F.C. Tucker Emge Realtors, and she explained that disclosure laws vary by state. The laws vary by state. In some places, sellers might not be obligated to disclose paranormal activities or past tragedies unless directly asked. It raises interesting questions about what’s considered significant information and how much the buyer should know.

Indiana

In Indiana, sellers aren’t required to disclose if they think a house is haunted or if someone died there. However, they can’t misrepresent the property if a potential buyer asks. According to Indiana’s Residential Real Estate Disclosure Law, Ind. Code §32-21-5-2, sellers must complete a standard form that covers the structure of the home—but it doesn’t mention anything about paranormal activity. Interestingly, sellers do have to disclose if the house was used as a meth lab. Well, that’s something!

Kentucky

Kentucky’s rules are quite similar. The Kentucky Real Estate Commission states that since June 24, 2003, agents aren’t required to disclose "stigmas" like murders or suicides associated with a property. Still, they must answer direct questions honestly.

What Should You Do as a Home Buyer?