Deceased property, buy or not?

[kathryn d]

Since the Seth Gonzales case, the market in NSW has moved to full disclosure. The new RTA also has provisions for full disclosure from a LL to a prospective tenant.

The vast majority of tenants would not care. However, for the small number that might or do, care, then full disclosure is the way to go all the time now in NSW.

This even comes down to disclosing that you as a LL might want to sell the property during the period of the tenancy.

Although, 'material fact' disclosure relates to 'violent crime', and as such, a deceased estate in the normal course of events, would not be caught by the regulations, it also covers:
As material facts the following matters:
· if the premises has been subject to serious flooding or bushfire in the last 5 years;
· any significant health or safety risks associated with the premises and which are not reasonably apparent on inspection by tenant;
· if the premises has been the scene of a serious violent crime during the last 5 years;
· if the tenant is required to arrange and pay for rubbish collection;
· if the tenant will not be able to obtain a free residential parking permit

So, no longer is it "don't ask - don't tell" - it is tell all, up front.

As the OP stated, it was a natural death..not a violent one.
Disclosure is not required.
It will not help the situation to disclose this death.

 

[wylie]

I think there is a vast difference between a violent death in a house and the passing away of an owner in the house.

The argument that every house in the land would have had somebody pass away over a period of 200 years is just stretching it to make the argument look silly.

I would not like to buy, rent or live in a house where a violent death took place, but I have no issues at all about living in a house where an elderly owner may have passed away, and have done so with out any problems.

I would think that many people would feel the same, and if they don't feel the same, then this question would not need to be asked.

 

[jaycee]

We're humn beings.

We have emotions etc which affect us and the way we view things.

Even us logical ones who don't

 

[Propertunity]

As the OP stated, it was a natural death..not a violent one.
Disclosure is not required.

Agreed, which is why I said :

..... as such, a deceased estate in the normal course of events, would not be caught by the regulations,

 

[ericproperty]

Propertunity

To me, I would like to disclose to prospective tentants the fact. Otherwise after tentants move in they could find out from neighbours, then they would be very upset and stressed. Inevitable they will blame the owner. then problems start. If they know the fact before they move in, they might be more relaxed.

 

[wobbycarly]

Propertunity

To me, I would like to disclose to prospective tentants the fact. Otherwise after tentants move in they could find out from neighbours, then they would be very upset and stressed. Inevitable they will blame the owner. then problems start. If they know the fact before they move in, they might be more relaxed.

Or they might not move in.

Would you also tell them about the pet rabbit, and all the flies that died in that property, too?

 

[ericproperty]

wobbycarly ,

haha, you are teasing me. The point I am trying to make is, how much would I need to reduce the rent if I want to find a tentant knowing the fact.

 

[kathryn d]

wobbycarly ,

haha, you are teasing me. The point I am trying to make is, how much would I need to reduce the rent if I want to find a tentant knowing the fact.

I do not think anyone is teasing you.
We are trying to help you.
A tenant will use the death against you either way.
It is up to you how you deal with it.
I will assume you are new at being a LL.

 

[Perp]

how much would I need to reduce the rent if I want to find a tentant knowing the fact.

If the tenant is freaked out by the death of the previous occupant, there's probably no discount which would be big enough, so you really need to just put normal rent on it and find somebody who isn't bothered by the previous occupant having died there, if you feel compelled to reveal it.

I have no idea why you'd reveal it, though; for myself, if I didn't know, I wouldn't care less, but if you felt compelled to make a point of it, it'd put the idea in my mind that I should be bothered.

If you didn't tell me, and I found out later from neighbours or something, I really don't think I'd care. I certainly wouldn't feel that you'd been deceptive in not revealing it.

 

[RickF]

Would you even have to disclose where in the house he died. I doubt it so just say he had a heart attack in the backyard gardening and was pushing his limits as far as you know.
He was a really nice bloke and his spirit went straight to heaven. Lovely story.
You could add that his organs were donated and saved a few lives. He should be regarded as a saint but you won't be charging more rent because of it.

 

[ericproperty]

Perp & RickF , great advice, thanks mate

 

[soyabean]

Two of my PPORs , one, the previous owner got electrified on the roof while fixing the aircond or something . Beautiful hill/valley view.
The other, the previous owner died of cancer (at a young age). If I had kept it (I should have !!) it would be worth 1 M or more now. Bought in 1999 for 299K
Both houses were bought about 1 year after the death.
I had no prob reselling them, and not at any reduced price.
Did rent out the 1st one for about a year, no issue.

 

[ericproperty]

thanks Soyabean.

It is just the thought that people deceased in the property turns lots of people off. still deciding whether should I buy or walk away. But from the replies to the thread, lots of people think it is not a problem which is very positive.

 

[nww]

Propertunity

To me, I would like to disclose to prospective tentants the fact. Otherwise after tentants move in they could find out from neighbours, then they would be very upset and stressed. Inevitable they will blame the owner. then problems start. If they know the fact before they move in, they might be more relaxed.

If this property is in an Asian area you could limit who will view the property.
I came across a property recently near Marsfield and the sign out the front
had been altered by someone with a texture, they added another dot form
indicating owner had died in property, The agent said they have had this
problem for some time and this puts off Asian buyers straight away and
no convincing by the agent will get them back.

 

[INVSTOR]

Does it have a smell?? My neighbour was dead for a week in his unit and there was a stench. The new owner gutted the house except for bathroom before renting it. She didn't disclose to tenants. One of the neighbours had joy telling the tenants about the death. The neighbour wanted to buy the property himself but missed out. The tenants weren't worried at all and were paying a premium price for rent. One of the tenants was half asian. I would factor into the price if you need to replace anything if the smell has stayed though.

 

[ericproperty]

thanks for your replies guys.