What Is a Seller's Disclosure in Texas? Who Must Provide One and Who's Exempt

What Is a Seller's Disclosure in Texas? Who Must Provide One and Who's Exempt

If you're selling a home in Texas, one of the most important documents you'll fill out is the seller's disclosure notice. If you're buying, it's one of the most valuable documents you'll read. It tells you what the seller knows about the home's condition before you commit to buying it. Here's what a seller's disclosure is, who has to provide one, when it's due, and the specific situations where Texas law doesn't require one.

What Is a Seller's Disclosure?

A seller's disclosure is a written notice describing what the seller knows about the condition of the property. It reflects what the seller knows as of the date they sign it. It isn't an inspection or a warranty. It's the seller's honest account of what they're aware of, and buyers should still get their own inspection.

The requirement comes from Texas Property Code § 5.008, which spells out what the notice must include. Most Texas sellers use the Texas Real Estate Commission's Seller's Disclosure of Property Condition form (TREC OP-H). Sellers can also use the Texas REALTORS® version, since it includes everything the statute requires and more.

What Does a Texas Seller's Disclosure Cover?

The disclosure asks about a wide range of items, including:

• Systems and appliances. The seller notes which items the home has, like HVAC, plumbing, appliances, and smoke detectors, and whether they work.
• Known defects. This covers problems with the foundation, roof, walls, windows, electrical, plumbing, and other parts of the home.
• Environmental and structural conditions. Examples include past water damage, termites, previous repairs, lead-based paint, and asbestos.
• Flood history. Since September 1, 2019, sellers have had to answer flood questions in writing. They must disclose whether the home is in a 100-year or 500-year floodplain, whether it has flooded, any past flood insurance claims, and any FEMA or SBA assistance received.
• Neighborhood and legal items. This includes HOAs, special districts, easements, and pending lawsuits.

For more on flood risk, read our guide: Do You Need Flood Insurance in Sugar Land?

Who Must Provide a Seller's Disclosure in Texas?

Under § 5.008, a seller of residential property with no more than one dwelling unit must give the buyer a seller's disclosure. In practice, that covers most single-family home sales in Texas, including condos and townhomes.

A few points sellers often miss:

• The duty belongs to the seller, not the agent. In Van Duren, a Texas court held that the disclosure requirement applies to the seller, not the seller's agent or broker. Your agent can help you through the form, but you're the one who has to complete it accurately.
• Not living in the home doesn't exempt you. Landlords, investors, and owners who never lived in the property still generally have to provide a disclosure. In that case, the disclosure covers what the seller knows.
• Heirs usually have to provide one. When a home is sold by an estate's executor, no disclosure is required. Heirs and beneficiaries aren't exempt, though, so they generally must complete one when they sell an inherited home.

When Is the Seller's Disclosure Due?

The seller must deliver the disclosure on or before the date the purchase contract is signed. If it arrives after the contract is signed, the buyer can terminate the contract for any reason within seven days of receiving it.

That's why most Texas sellers complete the disclosure when they list their home. Having it ready keeps offers moving and avoids giving the buyer an extra way out of the deal.

When Is a Seller's Disclosure Not Required in Texas?

Texas Property Code § 5.008(e) lists 11 situations where the disclosure isn't required. Separately, the requirement only applies to property with one dwelling unit, so sellers of duplexes, triplexes, and other multi-unit properties aren't required to provide one.

A seller's disclosure is not required for transfers:

1. By court order or foreclosure sale.
2. By a trustee in bankruptcy.
3. From a borrower to a lender, such as a deed in lieu of foreclosure.
4. By a lender that acquired the property through foreclosure or a deed in lieu. This means bank-owned properties are generally exempt when the bank resells them.
5. By a fiduciary administering an estate, guardianship, conservatorship, or trust. For example, an executor selling a home from a deceased owner's estate.
6. From one co-owner to another.
7. To a spouse, or to a parent, child, grandchild, or other lineal relative of one of the sellers.
8. Between spouses as part of a divorce decree, legal separation, or related property settlement.
9. To or from a government entity.
10. Of a new home that has never been lived in. This is why builders selling brand-new homes don't provide the standard seller's disclosure.
11. Of real property where the value of any home on it is no more than 5% of the property's total value. This usually applies to land and ranch sales with a small or minimal house.

Exempt Doesn't Mean "Disclose Nothing"

Being exempt from the § 5.008 form doesn't mean a seller can hide problems. Every seller in Texas, even one exempt from the seller's disclosure requirement, still has a duty to disclose known defects.

Selling "as is" doesn't change that either. An as-is clause means the buyer accepts the property without requiring repairs. It doesn't eliminate the seller's disclosure obligations or the seller's liability for fraud or concealing defects.

There are also separate federal rules. For example, foreclosure sales are exempt from both the Texas disclosure and federal lead-based paint disclosure requirements. But when a lender later resells a home built before 1978 that it bought at foreclosure, it must still provide the lead-based paint disclosure.

Tips for Texas Sellers

• Fill it out early. Complete the disclosure before you list so it's ready when offers come in.
• Be thorough and honest. If you know about it, disclose it. Disclosing an issue up front almost always costs less than a dispute after closing.
• Gather your records. Pull together repair receipts, warranties, insurance claims, and inspection reports so your answers are accurate.
• Update it if things change. If you learn about a new issue before closing, talk to your agent about updating the disclosure.
• Ask an attorney if you're unsure. Your agent can't give legal advice, so a real estate attorney is the right call for questions about exemptions or tricky situations.

Tips for Texas Buyers

• Read every page. Pay close attention to items marked "yes," past repairs, and the flood section.
• Use it to guide your inspection. Ask your inspector to take a closer look at anything the seller disclosed.
• Know your rights. If you get the disclosure after signing the contract, you have seven days to terminate.
• Don't treat it as a guarantee. The disclosure is the seller's knowledge, not a warranty, so always get your own inspection.

Frequently Asked Questions

Is a seller's disclosure required in Texas?
Yes, for most sales of residential property with one dwelling unit. Texas Property Code § 5.008 lists specific exemptions.

Do I need a seller's disclosure if I've never lived in the house?
Generally, yes. Not living in the home isn't an exemption. You disclose what you know about the property.

Do builders have to provide a seller's disclosure?
Not for a brand-new home that's never been lived in. That sale is exempt under § 5.008(e).

Do executors have to provide a seller's disclosure?
No. Executors and other fiduciaries are exempt when selling property from an estate. Heirs selling an inherited home generally aren't exempt.

What happens if the seller doesn't provide a disclosure?
If the seller delivers the disclosure after the contract is signed, the buyer can terminate within seven days. A seller who hides known defects may also face legal liability.

Does selling "as is" mean I don't need a seller's disclosure?
No. An as-is sale doesn't remove the seller's disclosure obligations or liability for concealing defects.

Selling or Buying in Fort Bend County? We'll Help You Get It Right

A complete, accurate seller's disclosure protects sellers and gives buyers confidence, and it helps deals close smoothly. The Cathy Stubbs Team at Keller Williams guides sellers in Sugar Land, Richmond, Rosenberg, and Greater Houston through every form, so nothing slows down your sale.

Whether you're buying, selling, building new, investing, or leasing, we're here to help.

Ready to talk? Call us at 281-967-6149 or visit our office at 307 Ulrich St., Sugar Land, TX 77478.

This article is for general informational purposes and isn't legal advice. For questions about your specific situation, consult a licensed Texas real estate attorney.