Most states: death on property is NOT a required disclosure (rules vary — know yours)
Before you read
Test yourself first: 5 questions
Question 1 of 5
A property where a notorious crime or death occurred may be classified as:
Answer: A. Stigmatized property carries an emotional/psychological stigma rather than a physical defect; disclosure rules for it vary widely by state.
Question 2 of 5
Whether a 'psychologically impacted' (stigmatized) property must be disclosed:
Answer: A. Stigma disclosure (deaths, crimes, alleged hauntings) is governed by state statutes, which differ widely; many limit or bar required disclosure.
Question 3 of 5
A stigmatized property is one that:
Answer: B. A stigmatized property is undesirable for psychological or emotional reasons, such as a death or alleged haunting, not because of a physical defect.
Question 4 of 5
A residential property condition disclosure statement is typically completed by:
Answer: A. The seller completes the property condition disclosure from their own knowledge; the agent should not fill it in for them.
Question 5 of 5
If a property sits in a FEMA-designated flood zone, a buyer with a federally backed loan generally must:
Answer: A. Federally backed loans on property in a Special Flood Hazard Area require flood insurance.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Stigma = non-physical taint: death, crime, alleged hauntings
- Most states: death on property is NOT a required disclosure (rules vary — know yours)
- NEVER disclose HIV/AIDS status — fair-housing violation
- Megan's Law: agents may direct buyers to the sex-offender registry rather than answer
- Physical defects: always material. Stigma: follow state law exactly.
Stigmatized Property & Megan's Law: FAQs
Is Stigmatized Property & Megan's Law on the real estate exam?
Yes. Disclosures & Environmental is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
