If you’re selling a previously occupied home in Texas, you’ll almost certainly complete a Seller’s Disclosure Notice. If you’re buying, it’s one of the most useful documents you’ll read. Here’s what the law requires and how to handle it well.
What the law requires
Texas Property Code §5.008 requires a seller of a single-family residential property to give the buyer a written notice of the property’s condition. The seller completes it to the best of their knowledge as of the date it is signed. The Texas Real Estate Commission publishes a Seller’s Disclosure Notice form that follows the statute.
What it covers
- Items and systems in the home, and whether they work
- Known defects or malfunctions, such as foundation, roof, plumbing, or electrical issues
- Past repairs and conditions, such as previous foundation repairs or water penetration
- Flood-related items, including flood insurance, floodplain location, and past flooding
- Other conditions the seller is aware of, such as easements or pending assessments
When it’s due, and what if it’s late
The seller should deliver the notice before the buyer is bound by the contract. If the buyer receives it after signing, the statute lets the buyer terminate the contract for any reason within seven days after receiving it.
Sellers: deliver the notice before you accept an offer. A late notice gives the buyer a new, easy way out of the contract.
Sales that are exempt
The statute exempts certain transfers, including:
- Sales under a court order or foreclosure, and by a trustee in bankruptcy
- Transfers by a fiduciary administering an estate, guardianship, conservatorship, or trust
- Transfers between co-owners, to a spouse or lineal relatives, or between spouses in a divorce
- Transfers to or from a governmental entity
- Sales of a new home that has never been occupied
Even when a sale is exempt, sellers may still have obligations under other laws. Ask your agent or an attorney.
Tips for sellers
- Answer honestly and completely. If you don’t know, say so rather than guessing.
- Gather repair records, warranties, and reports before you list.
- Update your agent if something changes after you sign the notice.
See our guide to the listing agreement and contract to closing.
Tips for buyers
- Read every answer, and ask questions about anything marked “yes” or “unknown.”
- Use the disclosure to guide your inspection, not replace it.
- Request supporting documents for past repairs.
Learn more about inspections and the option period, or talk with a Clever Realtors agent.
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