SELLING IN TEXAS

Seller’s Disclosure Notice

Texas law (Tex. Prop. Code §5.008) requires sellers of single residential dwellings (and condos/townhomes) to provide a written **Seller’s Disclosure Notice** to buyers **prior to executing a sales contract**. The notice must include information on: the condition of the property’s structural components, electrical, plumbing, HVAC, any known defects or malfunctions, termites or other pest infestations, presence of hazardous materials (like radon, asbestos), any prior water damage or fire, etc. The Texas Real Estate Commission (TREC) promulgates a standard form for this. Some transfers are exempt (estate sales by executors, foreclosure by bank, new builder homes, between co-owners, etc.). If a seller fails to give the notice on time, the buyer may have the right to terminate the contract at any point before closing (the statute used to allow termination within 7 days of receiving it late). Importantly, Texas law says that providing the disclosure notice does not substitute for or waive any common law duty to disclose known material defects. Texas also has separate required disclosures: sellers must inform buyers if the property is in a MUD (utility district) or floodplain, and for certain coastal properties, a coastal access and erosion notice (which typically are separate forms or addenda provided alongside the disclosure notice). Additionally, if the property has had insurance claims for certain mold or foundation issues, those should be disclosed. Another new requirement: in 2021, Texas mandated that sellers disclose if the property has had any known flooding or is located in a 100-year or 500-year floodplain and the amount of any flood insurance claims – the TREC form has been updated to capture this information. Lastly, Texas sellers of properties with septic systems must provide info about the septic (and if it’s an aerobic system, a maintenance contract must be transferred).

• Tex. Prop. Code §5.008:contentReference[oaicite:229]{index=229}