law

stigmatized property

A stigmatized property is one that buyers may find less desirable for psychological reasons rather than physical defects, such as a past murder, suicide, rumored haunting, or a nearby sex offender. Whether a seller or licensee must disclose these facts varies by state; many states do not require it, though agents must not lie if asked directly. HIV/AIDS status of an occupant may not be disclosed under federal fair housing law.

Exam tip
Stigma is not a physical or latent defect. Expect questions on whether disclosure is required, which depends on state law, and that an occupant's HIV status must never be disclosed.
Example
A home where a prior owner died by suicide is listed for sale; the agent checks state law to see whether that fact must be disclosed to buyers.

Related terms & state variants

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23