On their arrival, Mrs Battleby gives them a rather colourful account of the goings-on. Joe is furious, as he had warned Hannah against raising “sperrits” and “woices”. When Hannah appears, Joe denounces her, declaring that the engagement is over. Her mother joins in, accusing her of being a witch who has sold herself to the devil, and that she is henceforth disowned by the family. Although Ricardo tries to intervene on Hannah’s behalf, the others are resolute in their poor opinion, accusing him of being up to no good. He feels a sense of responsibility for Hannah and announces that he will take care of her in future.
Ricardo feels guilty that his quest has resulted in Hannah’s ruin. Much to Steinberg’s horror, he resolves to marry her. He believes that such a move will allow him to do his duty and also bring him closer to Leonora. Hannah accepts his decidedly unromantic proposal and the three of them move to a cottage in Hampstead, where she keeps house for the two men. Her new role is virtually indistinguishable from the old one. However, her married state brings with a degree of confidence and she refuses to take part in another séance. Eventually, Ricardo explains her role in relation to Leonora and she kindly agrees to act as medium once more.
The spirit form of Leonora appears on many occasions, but always quickly disappears when Ricardo gets close to it. She refuses to answer when he asks whether she forgives him. Although Ricardo is becoming increasingly wretched, Hannah is taking pride in her increased status. Steinberg remarks that she is becoming a different woman, quite cultivated and less coarse in her pronunciation. She realises her power over her husband and starts refusing to do his bidding Steinberg admonishes her for such unwifely behaviour and is even more appalled when she starts flirting with him. He is immensely relieved by the timely intervention of an unexpected inheritance, which makes him very wealthy and also requires him to go to Berlin for a short while. Hannah now wishes she had married him instead of Ricardo.
When discussing Steinberg’s new-found wealth with Ricardo, Hannah inexplicably knows that her husband is a Marquis, and insists that he ranks more highly. Ricardo is appalled that she seems aware of his background, but Hannah claims she must have dreamt it. Suddenly, she looks very scared and declares that he is the “Markis dee Sorrento” and that the proof is in the Professor’s writing table. Ricardo denies the claim emphatically until Hannah, eyes blazing with passion, retrieves the proof for herself. Her triumph is compounded by her discovery that she is, in theory, the “Markiness of Sorrento”. Despite her husband’s pleas, she insists on adopting what she sees as her rightful title.
Ricardo wonders what has happened to the wife who used to be so kind and subservient. The spirit of Leonora appears to him in the séance room and confirms his suspicions that Hannah’s behaviour is his punishment for having murdered her. The spirit form also advises him that he must grant Hannah far more latitude.