Key Takeaways
- Texas sellers must complete the Seller's Disclosure Notice for residential property sales (with exceptions)
- The disclosure covers property condition, defects, and material facts about the property
- Agents must disclose material facts they know about, even if not on the disclosure form
- Texas has specific exemptions from seller disclosure including foreclosures, estate sales, and new construction
- Lead-based paint disclosure is required for homes built before 1978 (federal requirement)
Texas Disclosure Requirements
Texas law requires sellers and agents to disclose material information about property condition and defects.
Seller's Disclosure Notice
The Seller's Disclosure Notice is the primary disclosure document in Texas residential transactions.
When Required
The Seller's Disclosure Notice is required for sales of:
| Property Type | Required? |
|---|---|
| Single-family homes | Yes |
| Condominiums | Yes |
| Townhomes | Yes |
| 1-4 unit residential | Yes |
| Commercial property | No |
| 5+ unit residential | No |
What Must Be Disclosed
The Seller's Disclosure covers:
| Category | Items |
|---|---|
| Structural | Foundation, roof, walls, floors |
| Systems | Plumbing, electrical, HVAC |
| Appliances | Built-in appliances, water heater |
| Property condition | Known defects, previous repairs |
| Environmental | Flooding, drainage, hazardous materials |
| Legal | Lawsuits, liens, violations |
| HOA | Homeowner association information |
Timing
| Event | Requirement |
|---|---|
| Before contract | Preferred |
| After contract | Buyer may terminate within 7 days |
| Never received | Buyer may terminate anytime before closing |
Key Point: If the buyer receives the disclosure after signing the contract, they have 7 days to terminate without penalty.
Exemptions from Seller's Disclosure
Certain transactions are exempt from the Seller's Disclosure requirement:
| Exemption | Reason |
|---|---|
| Foreclosure sales | Bank/lender sale |
| Estate/probate sales | Administrator sale |
| Bankruptcy sales | Trustee sale |
| Court-ordered sales | Divorce, judgment |
| New construction | Builder provides warranties |
| Transfers to family | Gift, inheritance |
| Transfers to co-owner | Buyout, dissolution |
Warning: Even in exempt transactions, agents must still disclose known material defects.
Agent Disclosure Duties
What Agents Must Disclose
Texas agents must disclose material facts they know about, including:
| Must Disclose | Examples |
|---|---|
| Property defects | Structural issues, water damage |
| Environmental hazards | Flooding history, mold |
| Legal issues | Pending litigation, zoning violations |
| Property history | Previous fires, deaths (if asked) |
| Agency relationships | Representing both parties |
Agent vs. Seller Disclosure
| Agent | Seller |
|---|---|
| Must disclose known facts | Must complete Seller's Disclosure |
| Cannot guarantee disclosure | Responsible for accuracy |
| No duty to investigate | No duty to discover unknown |
| Liable for misrepresentation | Liable for fraud or concealment |
Lead-Based Paint Disclosure
For homes built before 1978, federal law requires:
| Requirement | Description |
|---|---|
| Disclosure form | Seller must complete lead disclosure |
| EPA pamphlet | "Protect Your Family From Lead in Your Home" |
| 10-day period | Buyer has 10 days to conduct inspection |
| Records | Seller must provide any lead test records |
Other Required Disclosures
| Disclosure | When Required |
|---|---|
| MUD disclosure | Properties in Municipal Utility Districts |
| Coastal area | Properties in coastal areas |
| Public improvement districts | PID assessment disclosure |
| Property tax | Tax rates and exemptions |
If a Texas buyer receives the Seller's Disclosure Notice after signing the contract, how long do they have to terminate?
Which of the following transactions is exempt from the Texas Seller's Disclosure requirement?