Do Ghosts Count as Residents I Need to Disclose?

You’ve finally decided to sell your house, but there’s one small, spooky detail you can’t shake. Strange noises at night, flickering lights, the feeling that someone (or something) is still hanging around. Whether you believe in ghosts or not, many homeowners wonder: Do I have to tell buyers my house might be haunted?

It’s a funny question on the surface, but it’s one that actually comes up more often than you’d think. Real estate law doesn’t exactly make room for the supernatural, yet there are real legal and ethical guidelines for what sellers must disclose. So, let’s separate the facts from the phantoms.

1. Legally Speaking, Ghosts Don’t Count as Residents

From a legal standpoint, ghosts don’t have residency status. They don’t pay rent, they don’t show up on the deed, and they don’t qualify for property tax exemptions. So no, you don’t have to list Casper or “the lady in white” as cohabitants on your disclosure forms.

However, the idea that a home is haunted can still matter. That’s because what you disclose isn’t limited to physical issues like leaky roofs or faulty wiring. Some states recognize what’s called “stigmatized property”, a property that’s psychologically or emotionally tainted in a way that might affect its value or desirability.

A haunting, a murder, or even a rumor of paranormal activity can fall into that category.

2. What Is a “Stigmatized Property”?

A stigmatized property is one that’s perfectly sound structurally but carries a non-physical stigma, something that might make potential buyers uneasy. This could include:

1. A previous death in the home
2. A murder or violent crime
3. A suicide or unexplained tragedy
4. Alleged paranormal activity

Cathy Counti, Lee’s Summit REALTOR offers this: “Different states handle this differently. Some require sellers to disclose stigmas upon direct inquiry, while others don’t require any disclosure at all unless it affects safety or market value.”

3. Disclosure Laws Vary by State

Here’s where things get interesting. The law doesn’t treat hauntings the same way everywhere.

1. California: Sellers must disclose any death that occurred in the property within the past three years. After that, you don’t have to bring it up, but if the buyer asks, you must answer honestly.
2. New York: Famously, in the 1991 case Stambovsky v. Ackley, a buyer sued after discovering the home he bought had been advertised by the seller as “haunted.” The court ruled that because the seller had publicly promoted the house’s ghostly reputation, they were legally obligated to disclose that information to the buyer.
3. Massachusetts, Minnesota, and New Jersey: These states have laws stating that sellers are not required to disclose a home’s reputation for being haunted or the site of a death.
4. Texas and Florida: Typically only require disclosure of material defects that affect the property’s physical condition, not its supernatural reputation.

So, whether you need to tell potential buyers about your “resident spirits” really depends on where you live.

4. The Ethical Side of Disclosure

Even if your state doesn’t require you to disclose paranormal activity, you might still consider doing so, especially if your home’s haunted reputation is public knowledge or well-known in the neighborhood.

Imagine a buyer moves in and hears all the local gossip at the corner store: “Oh, that’s the house where the ghost of Old Mr. Henderson still walks the halls.” If they feel blindsided, it could damage trust and lead to complaints or even lawsuits claiming misrepresentation.

In most cases, transparency is the safest policy. Saying, “There have been reports of unexplained activity, though we’ve never confirmed anything,” keeps you honest without making any supernatural guarantees.

5. Can a Haunted Reputation Hurt (or Help) Your Sale?

Believe it or not, a haunted house doesn’t always scare away buyers. Some people love the idea. Paranormal enthusiasts might even pay a premium for a home with ghostly stories attached. There’s an entire niche market of “haunted home” hunters who find the idea charming or exciting.

On the flip side, superstitious or easily frightened buyers may walk away the moment they hear a whisper of “haunted.” It all depends on the audience.

Marley Presswood, Mount Pleasant REALTOR says, “If your home has a spooky backstory, you might even lean into it creatively. Some sellers turn the “haunted” reputation into a marketing hook, complete with Halloween tours, themed open houses, or media features. Just remember, once you go public with it, that reputation becomes part of the property’s history and may need to be disclosed in future sales.”

6. Practical Tip: How to Handle It During a Sale

If you think your house’s reputation might come up, here’s what to do:

1. Check local laws or consult your real estate agent about your state’s disclosure requirements.
2. Be upfront if asked. Never lie or deliberately hide information.
3. Keep it factual. You don’t need to share ghost stories, just objective facts (“Some people have reported strange noises, but we’ve never experienced anything ourselves”).
4. Focus on the positives. Highlight the home’s charm, location, and condition. Don’t let the paranormal overshadow the practical.

The Bottom Line

No, ghosts don’t count as residents, and in most places, you don’t have to list them on your disclosure forms. But if your property is known locally for supernatural activity, or if a buyer asks about it directly, honesty is your best policy.

After all, a haunted house might not scare away the right buyer. For some, the idea of sharing a home with “friendly spirits” is just another kind of historic charm.

So, do ghosts count as residents you need to disclose? Not legally. But in real estate, as in life, sometimes it pays to be transparent, especially when things go bump in the night.