Texas seller's disclosure notice
A seller of "residential real property comprising not more than one dwelling unit" must give the buyer a written Seller's Disclosure Notice. The notice must follow the statutory form or be "substantially similar" to it, and it must contain at least every item on that form. Tex. Prop. Code § 5.008(a)1
- What the form covers. The form covers:
- which listed items the property has (appliances, systems, roof type and age) and whether any are defective;
- smoke detectors under Health & Safety Code ch. 766;
- known structural defects;
- conditions such as termites, previous structural or roof repair, asbestos, radon, lead-based paint, previous fires, and earlier methamphetamine manufacture;
- repairs needed, unpermitted additions, HOA assessments, lawsuits, groundwater or subsidence districts, and coastal and military-installation notices.
- Flood disclosures. The seller must disclose current flood insurance, earlier flooding from a reservoir release, earlier water entry from a natural flood, and whether the property lies wholly or partly in a 100-year or 500-year floodplain, floodway, flood pool, or reservoir. It must also disclose flood insurance claims and FEMA or SBA flood assistance. Tex. Prop. Code § 5.008(b)1
- Knowledge standard. The notice is completed "to the best of seller's belief and knowledge." A seller who marks information as unknown "is in compliance with this section." The form also says it is not a substitute for inspections or warranties. Tex. Prop. Code § 5.008(b), (d)1
- Timing and remedy. The seller must deliver the notice "on or before the effective date of an executory contract." If the seller does not, the purchaser "may terminate the contract for any reason within seven days after receiving the notice." Tex. Prop. Code § 5.008(f)1
- No duty to disclose. The seller does not have to disclose deaths by natural causes, suicide, or accident unrelated to the property's condition, or an occupant's HIV/AIDS status. Tex. Prop. Code § 5.008(c)1
- Exempt transfers. Exempt transfers include court-ordered and foreclosure sales, sales by a bankruptcy trustee, fiduciary transfers in estate administration, transfers between co-owners, to a spouse or lineal relatives, under a divorce, or to or from a government entity, never-occupied new homes, and property where the dwelling is worth no more than 5% of the property's value. Tex. Prop. Code § 5.008(e)1
Practice notes
- Separate notices may also apply. Depending on the property, Chapter 5 requires additional notices: potential annexation, property owners' association membership, and public improvement districts. Tex. Prop. Code § 5.0111; Tex. Prop. Code § 5.0121; Tex. Prop. Code § 5.0141
- Pre-1978 homes. Federal law adds a lead-based paint pamphlet, disclosure of known lead-based paint and hazards, and a 10-day inspection opportunity before the buyer is obligated. 42 U.S.C. § 4852d(a)2