Stricter Federal Law For Stigmatized Properties

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There Ought To Be A Standardize Federal Law for Stigmatized Properties
Amrita Meher (
You have just moved into your newly bought house and are really excited to live in a place which has been bought with your hard earned money. Things that you are concerned about is; hopefully there would be no leakage in the sink, no pipeline bursting through the wall or worse the foundation doesn’t start to slide. After staying there for a week or two, you realize that the house is amazing and everything about it is just perfect. What if there is something you are not aware of? What will you do if your neighbor brings a shocking news to your house instead of a housewarming gift? What if your neighbor tells you that your house was
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Staying in Illinois, you should have known about the real estate licensing statute (225 ILCS 454/15-20), which clearly states, “No cause of action shall arise against a licensee for the failure to disclose: (i) that an occupant of the property was afflicted with Human Immunodeficiency Virus (HIV) or any other medical condition; (ii) that the property was the site of an act or occurrence that had no effect on the physical condition of the property or its environment or the structures located thereon; (iii) fact situations on property that is not the subject of the transaction; or (iv) physical conditions located on property that is not the subject of the transaction that do not have a substantial adverse effect on the value of the real estate that is the subject of the transaction.”1
Unless and until you can prove that the homicide or any other untoward incident in your house affected the physical condition of the property, you are stuck with the house which seemed like a dream before someone broke the news to you. Such properties which buyers or tenants may shun for reasons that are unrelated to its physical condition or features are called stigmatized properties.2
Since 1980s, a majority of states have enacted statutes protecting nondisclosure of stigmas affecting real estate transactions. While many of them have elements in common, there are significant differences in what kind of stigmas
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