The plaque was unveiled at 50 St Catherine's Drive in Douglas by Robin Gibb's son, Robin-John.
Robin Gibb died of kidney failure in May, following a long battle with cancer.
The U.S. men's beach volleyball team of Jacob Gibb and Sean Rosenthal were even less affectionate.
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Barry Gibb, the last surviving member of the band said it was an "emotional experience".
But the Schools Minister Nick Gibb accepted that more needs to be done.
The Gibb brothers, who grew up in Manchester, have been performing together since the late 1950s.
This should enable them to deal with misbehaviour on the day it occurred, Mr Gibb said.
But Schools Minister Nick Gibb told MPs that the government was committed to competitive sports.
By the end of the last century the guarded optimism of Gibb and Smith had faded.
Gibb, who was appointed CBE in 2004, was president of the Heritage Foundation from 2008 to 2011.
Among them is Conservative MP Nick Gibb, who was, until the recent reshuffle, schools minister in England.
The ceremony was the culmination of a five-year campaign, spearheaded by the late Bee Gees singer Robin Gibb.
Robin Gibb cancelled a series of shows in Brazil in April 2011, after again suffering from abdominal pains.
The house was home to all three Gibb brothers before the family moved to Manchester in the 1950s.
In a statement, Gibb said he and his wife Linda would build a new house near the original.
BBC: Investigators have not yet disclosed the cause of the fire
Gibb bought the house in Hendersonville, Tennessee, in 2006 and was renovating it when the blaze broke out.
BBC: Investigators have not yet disclosed the cause of the fire
Bee Gee Barry Gibb, who owns the property, said the land was "sacred" and "must be protected forever".
BBC: Investigators have not yet disclosed the cause of the fire
And the same applies to the other members: Jane Ellison, Paul Uppal, Nick Gibb, Peter Lilley and Jake Berry.
Despite the band's success Robin Gibb continued to pursue a solo career and also wrote songs for other artists.
BBC: Bee Gees singer Robin Gibb's career celebrated with stamps
The Heritage Foundation and Thame Town Council have installed the plaque at Gibb's home The Prebendal, in Priestend, Thame.
Under new leadership and with significant change, we have made notable improvements in infection control since Ms Gibb's departure.
Ms Gibb said she was "demonised" by the press and used as a scapegoat in the Healthcare Commission's report.
My heart goes out to the Gibb family in this time of sorrow.
Gibb also claimed he was "shocked" when told what was inside the packages.
Passing sentence, Sheriff Arthurson said court reports concluded Gibb had expressed a complete "lack of remorse" for attacking Chalmers.
Gibb's wife Dwina and children Robin-John, Spencer, and Melissa have been at his bedside every day, the doctor said.
Shadow Schools Minister Nick Gibb said the draft code was "far too prescriptive".
Prosecutor Kath Harper said Gibb told police he had "chummed his pal called John" to England "so he wasn't bored".
Barry is the last surviving Gibb brother following the death of Maurice in 2003 and younger brother Andy in 1988.
BBC: Bee Gees singer Robin Gibb's career celebrated with stamps
Smith was a student of Sir Hamilton Gibb, the doyen of Anglo-Islamic scholars of the first half of last century.
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