Legal Question in Real Estate Law in California
my mom passed couple of weeks ago and left a condo. She passed away inside the condo. We can not afford to pay for the mortgage but we want to keep the property. Can we rent out without disclosing that my mom passed away inside the condo? Property Northern California.
2 Answers from Attorneys
This is a hotly debated and unresolved issue in real property law. The legislature attempted to clear it up a few years back but only managed to give new fodder for debate. The Civil Code now provides that a death on the property more than three years ago does not need to be disclosed. Unlike all the other disclosure requirements, it does NOT say that deaths within three years do need to be disclosed. Case law says that deaths need to be disclosed if they are "material" to the value or desireability of the property. Gruesome or heneous deaths are material. Other deaths may or may not be. The law doesn't say. If a buyer or lessee asks about deaths they must be disclosed. So, if your mother passed quietly, you probably do not have to disclose unless asked, but the law is not really clear on that.
I agree with Mr. McCormick in that there has never been a fine line drawn about when to disclose or not to disclose a death in the premises. Case law tends to hold that if a buyer would think it was material, then it needs to be disclosed. The case law has involved situations with murders, or property that is rumored in the community to be haunted. Your situation does not appear to be one of those situations.
To be on the safe side, I advise my clients to disclose it. If people are going to be touchy over it, they are not the people to sell to if you don't disclose it, because then they are at least going to sue for the nondisclosure.