In Stambovsky v. Ackley, the court held that if a condition has been created by a seller that 'materially impairs the value of the contract and is peculiarly within the knowledge of the seller or unlikely to be discovered by a prudent purchaser exercising due care,' such condition must be disclosed.
If a seller has created and perpetuated a notion that the house is haunted, such information must be disclosed. But a mere suspicion of a ghost does not trigger the disclosure requirement.
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