In a
previous column I mentioned the story of the Amityville, New York house, the
scene of a gruesome family murder that was sold, led to claimed paranormal
activity, movies, books and more sequels, all detailing the house’s sordid past
and its alleged possession. That house
has been occupied and sold repeatedly despite its infamy, and without further
incident.
Other famous
or infamous houses face similar problems.
The house used in the Brady Bunch
is a real home in Studio City, California.
The real house, built in 1959, was a one story, typical middle class
home. A false second story façade was
added for exterior shots and the home was frequently shown during the show’s
run and many subsequent movies. Tourists
continue to flock to the home, despite many years of change and the
installation of a privacy fence. Simply
google “the brady bunch house” and you will get 23,100 hits, including a
www.zillow.com listing at http://tinyurl.com/4yfmj33. Given the notoriety, any
listing would have to disclose this to prospective buyers.
Another
infamous house was the home leased to the Heaven’s Gate cult that committed
mass suicide in the 9,200 square foot mansion in March, 1997. The notoriety and required disclosure drove
the value of the home down from over $1.2 million to less than
$700,000.00. Eventually, due to so many
onlookers and no buyers, the neighbors bought the house, changed the street
name and tore down the house, to protect their community. Apparently, a street name change with a
slightly different address has solved the issue, as it appears that a
multi-million dollar mansion is now located on the same property.
One house affected by its notoriety is the Highland Park home of Cameron, Ferris’
best pal in the movie, Ferris Bueller’s
Day Off, and the scene of the infamous Ferrari car kill. Originally listed for $2.3 million in 2009
with hopes that the film’s tie-in added value, it languished on the market for
years despite a unique and historic architectural design. The home finally sold after five years on the
market for less than $1.1 million. One
factor that drove down the price was the constant presence of curious tourists,
including some who trespassed to get a closer look. Zillow does not even mention the film in its
listing at http://tinyurl.com/lmc9dg.
The owners
of the home in the movies Home Alone and Home Alone 2 put a large “Private
Property – Stop” no trespassing sign right on their front lawn to stop the constant
flow of trespassing tourists. Despite
the sign, tourist intrusion is a fact of life for this famous house. Selling for $1.6 million in 2012, the home
may not have suffered as much from the notoriety as some other famous houses,
as Zillow still describes the home (http://tinyurl.com/ygwbdfq) as, “the
quintessential family home, as depicted in ‘Home Alone,’ filmed here 20 yrs
ago.”
An allegedly
haunted house was the subject of a legal challenge of rescission when a buyer,
after signing a contract, discovered the history of the home as “haunted.”
Prior to the sale, the former owner had a deep knowledge of the home’s alleged
haunted past. The owner had even written an article that was published in the
1977 Reader’s Digest, “Our Haunted House
on the Hudson.” Prior to signing the
contract, neither the seller who wrote the article, nor the listing agent,
disclosed the haunted history to the buyer.
The buyer,
unaware of the history at the time of the sales contract, became concerned
about the ghostly facts prior to closing and refused to close. The $32,500.00 deposit was retained by the
seller for the buyer’s failure to close, and the buyer’s lawsuit was initially
dismissed. The buyer appealed the dismissal and won on his claim for
rescission. The appellate decision that followed is full of interesting and
ghostly puns and can be found here: http://tinyurl.com/yzdcr6n.
The appellate
court held that the Reader’s Digest article, in which the seller claimed the
house was, in fact, haunted, rendered it haunted as a matter of law, whether or
not it actually housed poltergeists. The court further held, as a result, that
rescission was appropriate under those circumstances, despite New York’s then
adherence to the legal rule of Caveat
Emptor, or “buyer beware.”
Further, the court rejected the buyer’s
additional claim of fraud, which sought damages against both the seller and
broker, based on allegations that both parties had a duty to disclose the
haunting. The court reiterated the general rule that neither party had a duty
to disclose those facts. As a result, the court held that the buyer was
entitled to rescission, return of the deposit and nothing more. Under Florida law, the opposite would have
been true as to the fraud claim. Since
1985, the law in Florida is no longer Caveat
Emptor, requiring sellers and brokers to reveal all material facts that
affect the value of a home for sale.
In
hindsight, the buyer of the haunted house may have made a financial mistake. The lovely home in Nyack, New York was sold
for over $1.7 million in 2012, nearly triple what he would have paid in 1990. Because of possible issue underlying any
home, the best advice to buyers on any home purchase is to ask questions and
research any home thoroughly before buying lest something unwanted be
discovered.
Michael
J Posner, Esq., is a partner in Ward Damon a mid-sized real estate and business
oriented law firm serving all of South Florida, with offices in Palm Beach
County. They specialize in real estate
and business law, and can assist buyers and sellers in loans and
purchases/sales. They can be reached at
561.594.1452 or by e-mail at mjposner@warddamon.com
