The Stambovshys found a nice Victorian home in the New York village of Nyack and in 1991 they made an offer on the home. The offer was accepted and they purchased the home for $650,000.
A couple of months after the contract was signed, Mr Stambovsky was horrified when he learned that the home was well known in the community to be a Haunted House!!
Apparently, the phantasmal reputation of the house was commonly known in the village. The sellers had even publicized the "hauntings" in the local media as well as Readers Digest. In 1989, the house was included in a five home tour of Nyack and described in a November newspaper article as a "riverfront Victorian (with ghost)". The Stambovskys were not from the area and did not know about the poltergeists.
Soon, they brought legal action against the sellers and the seller's agent based on the non-disclosure of the presence of ghosts in the home. They wanted out of the contract because of this non-disclosure.
The trial court said no way! However, the case went on appeal and the appellate court ruled in favor of the Stambovskys because " as a matter of law, the house is haunted".
The court reasoned that because the seller had promoted the hauntings to several publications, that they could not now deny the existence of ghosts. Therefore, the appellate court ruled that under the equitable principals of the law, the Stambovskys were entitled to a refund of their down payment of over $32,000.
This by the way, was the Amityville house... Stambovsky v. Ackley. ..decided in the New York state appellate court in 1991.
So, sellers of Memphis Homes beware and Realtors take notice; if selling a haunted house, it is best for the seller to disclose this in the Tennessee property disclosure form. Whether you believe in ghost and spirits of the afterlife or not, it is best to be covered just in case.
The most haunted spots in Memphis, according to Memphis Paranormal Investigations LLC :
Old Tennessee Brewery Earnestine and Hazels
Cotton Exchange Theatre Memphis
Meeman-Shelby Forest State Park