Bought home, found out someone died in it.

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I have a very strange question. Back in October my wife and I bought a new home. It was that house that wouldn't sell. Aside from the landscaping being terrible, the paint colors atrocious and some other minor cosmetic issues it was a great find. We have since completed the projects and made the house a home. This week we redid the front yard landscaping and have started to meet the neighbors. One of them lead on that the woman's husband died in the home. We verified this through our local police department but will not know the cause of death until monday when we can call the records division. My wife has a real problem with living in a home where someone died. After all this work that we did and the recent downturn in the market we will probably have a very difficult time selling. My neighbor said that the seller is required by law to notify us that someone died in the house. Is this true? I live in Ohio. If it is true what recourse do we have?? Looking for any advice I can get on this one as I have never come across it before.