Expert: Dick Dennis - 10/9/2009

Question
hello. i am a student at university that is studying economics. i had a query about housing information and insider trading. in a hypothetical situation, if in a house there was to have been a murder, is it legal duty for the real estate agent to make the murder information public to the buyers interested in purchasing the house? if the real estate agent was not to mention the murder when the buyers asked if there was anything else the real estate agent wanted to mention about the house before they bought it, is that insider trading because it would possibly sway their opinion on whether or not they wanted to buy the house?
would the murder that happened in the house be certain information that needs be revealed because the real estate agent owes a duty to legally provide information of interest about the the house to the buyers?


a good reference to what im talking about would be the simpsons episode "reality bites" episode number 5F06 where Marge encounters Lionel Hutz, and seeing he has become a realtor, decides to try it herself. She begins working for Hutz, at "Red Blazer Realty". She tells everyone her honest opinion about the houses, and this leads her to not sell any. Hutz tells her to use more positive descriptions when selling the houses, such as "cozy" instead of "small". Hutz tells Marge if she does not sell a house in the first week, she is fired. Marge does not disclose the entire truth about the "murder house" she sells to the Flanders family. The house was the site of the infamous "Jealous Jockey Murders". Socialite Mrs. Astor survived by concealing herself in the pantry. The Flanders purchase the house and bid farewell to the Simpsons. its season nine. about ten or so minutes into the show.

- g

Answer
Here in California any kind of death within 3 years should be reported to the buyer. I suppose other states here may or may not have such a law. I cannot help you with your country, nor am I familiar with "Reality Bite" to which you refer. I do wish you well.

Dick Dennis