Wisconsin Real Estate Sales Practice Exam

Which of the following is NOT a requirement for disclosing information about a stigmatized property?

1. Disclosure of prior deaths on the property

2. Disclosure of hauntings or other paranormal activities

3. Disclosure of any known structural defects

4. Disclosure of legal issues regarding the property

The correct answer is: Disclosure of hauntings or other paranormal activities

The correct choice indicates that disclosure of hauntings or other paranormal activities is not a requirement for disclosing information about a stigmatized property. Stigmatized properties involve elements that may not affect the physical condition of the property but can influence its perception in the market. In contrast, disclosing prior deaths on the property, known structural defects, and legal issues regarding the property are all significant from a legal and ethical standpoint. These disclosures can directly impact a buyer's decision and are typically governed by state laws and regulations, requiring real estate professionals to be transparent about such issues. However, the perception of potential hauntings or paranormal activity falls outside these regulatory requirements, as such phenomena are subjective and not universally recognized as affecting the property’s value or safety in the same concrete manner. Thus, it is not mandated to disclose these types of stigmas when selling property.