Sellers Disclosure Texas: A Guide To Ace Your Disclosure Process

✍️ Editor’s Note: Understanding and dealing with sellers disclosure in Texas can be intimidating for home sellers. Here’s Houzeo’s guide to help you ace your disclosure requirements.

» BREATHE EASY: Americans listed $3.5 billion worth of properties on Houzeo.com in 2021. Houzeo simplifies figuring out your seller disclosure requirements. Start your FREE listing NOW!

Texas real estate laws require home sellers to disclose a lot of things when selling their houses. Seller disclosure notice for Texas is a multi-page document and can leave home sellers confused.

🎯 Houzeo Makes It Easy For You To Meet Your Disclosure Requirements




Houzeo offers the best possible alternatives for you to deal with disclosures.

💲 List your property with Houzeo’s Freemium Plan

💲 Purchase the “Contract to Close Upgrade Package”. A Licensed broker will review your paperwork to make sure it is appropriate.

In addition, you should also have the settlement agent review the paperwork so you cover all bases.



» More: Start your FREE listing NOW!

*Seller disclosures are exclusively the responsibility of the home seller. Regardless of the service, you engage in, you are required to ensure seller disclosures provided by you are complete and accurate to your best knowledge. Houzeo is not a brokerage or a licensed agent. It is a tech platform and as such the tips presented here should not be construed as any advice for which a real estate or attorney license is required.

» Jump To

• Seller’s disclosure definition
• Importance of disclosures
• Texas disclosure laws
• When to provide sellers disclosure in Texas?
• What needs to be disclosed?
• Texas disclosure forms
• Consequences of lying on Texas sellers’ disclosure
• Most Common Mistakes By FSBO Home Sellers In Disclosures
• Tips to minimize problems in disclosures
• Final Word
• FAQs

What Is A Seller’s Disclosure?

Texas sellers disclosure form is a kind of a standard checklist form containing material defects and features of the property. It provides information about the property that may negatively affect the value of the house.

If there are material defects in a property that may impact the value of the property and the seller is aware of them, the seller should disclose them. However, sellers should report these defects to the best of their knowledge and in good faith. From pest infestation to pending legal issues, you should disclose any known information about your Texas house. This will help you avoid future disputes.

Sellers’ disclosure in Texas can be a little complicated to understand. So, it’s advisable to review the form with your real estate agent or lawyer as per the statutes in your state. Usually, the disclosure form is completed along with the listing paperwork – especially in the Multiple Listing Service (MLS) provided by the listing agent.

» More: Paperwork for Selling a House Without a Realtor

Importance Of Seller’s Disclosure

Sellers’ disclosures serve the following purpose in real estate transactions:

Texas Real Estate Seller Disclosure Laws

Sellers’ disclosure laws in Texas are governed by Section 5.008 of the Property Code. It says that home sellers of single-unit residential properties must provide buyers with a Seller’s Disclosure Notice.

Texas Sellers Disclosure Exemptions

Texas Property Code lists 11 circumstances under which sellers are exempt from providing disclosures. These are as follows:

When Do You Have To Furnish Disclosures In Texas?

As per Section 5.008 of the Property Code, sellers are obliged to furnish the seller disclosure statement on or before the executory date of the contract. This makes sure that buyers know about the damages and defects present in the house.

If a contract is entered before providing the disclosure notice, then the buyer can terminate the contract within seven days after receiving the notice.

What Do Texans Have To Disclose When Selling Their House?

Sellers are expected to fill out the Seller’s Disclosure Notice which is provided by the Texas Association of Realtors (TAR). It is a 6-pages form that you need to fill out when selling your house in Texas. It contains 14 sections in which the following things have to be disclosed:

What Do Sellers Not Have To Disclose?

The following information that a seller isn’t required to disclose as part of Texas’ Seller Disclosure Requirements are:

• Suicide, death due to natural or accidental causes unrelated to the property’s condition
• A sex offender living nearby
• Haunted property
• Anyone who lived on the property that has AIDS or HIV

Moreover, the information stated above isn’t completely useless. The seller can either warn the interested buyer or keep the information to themself. Either way, no legal actions can be taken in the event the information remains withheld.

Which Other Disclosure Forms Do I Have To Fill In Texas?

Apart from the Seller’s Disclosure Notice, sellers are expected to fill out the following forms when selling their property in Texas:

Forms	Purpose
Federal Disclosure of Information on Lead-based Paint and/or Lead-based Paint Hazards	This is applicable if your house is built before 1978. It is a federal disclosure that all American home sellers are required to furnish. You need to fill out a form for disclosing hazards related to lead paint.
Fire Alarm Installation Certificate	Sec. 766.002 of Texas’ Health and Safety Code Title 9 Subtitle A Chapter 766 Subchapter A states that smoke detectors should be installed by local building codes.  📝 Note: The information and format of the Fire Alarm Installation Certificate must be determined by the state fire marshal

Texas Real Estate Disclosure Forms

Home sellers need to fill out the following forms as a part of Texas disclosures:

 

Consequences of Lying On Texas Seller’s Disclosure

There are 3 actions a buyer can take if a seller lied on a property disclosure statement in Texas. 

Deceptive Trade Consumer Protection Act	The Act makes any false or misleading statement or deceptive act that was made to induce the buyer into buying unlawful. Further, any misrepresentations regarding the quality or standard of the property which induce the consumer into buying the house are unlawful. The buyer can claim monetary damages against the losses faced due to the material defect.
Statutory Fraud Act	A case of fraud is brought against a seller when they misrepresent or fail to disclose any fact which could influence the buyer about entering into the contract. In such a situation, the seller pays exemplary damages, attorney’s fees, and other court costs if found guilty. An action can be taken under this Act where the defect is concerned with environmental hazards.  Under The Statutory Fraud Act, it is not so important to prove the seller’s prior knowledge about the defect. Hence, a suit under this Act is more dangerous for the sellers.
Common-Law Fraud	Apart from these Acts, a buyer can sue under common law for fraud or misrepresentation. Because the buyer needs to prove the fraudulent intent of the seller under this suit, several buyers opt for the first two options. Lying on seller disclosure may lead to facing court proceedings and monetary or punitive damages followed by the rescission of the contract for sale.

Most Common Mistakes By FSBO Home Sellers In Disclosures

The main object of disclosures in any area is to give clarity and perspective to a buyer. Buyers who are looking for a home usually have certain criteria in mind before searching a home. A seller disclosure acts as a bridge to close these doubts, giving buyers a reason to have faith in you and your deal.

• One of the biggest mistakes a seller can make is not giving disclosures at all. The lack of trust between a buyer and seller can demotivate a buyer from considering your property altogether. Hence, it is suggested that sellers complete all disclosure formalities as soon as possible, even though it may not be legally required in your state.

• Likewise, sellers also get an option to mark a point as ‘unknown’ in disclosures. This gives you ample opportunity to be honest in your disclosures. Also, marking a certain disclosure clause as ‘unknown’ shifts the burden on a buyer to inspect that particular problem. Hence, don’t make the mistake of lying on your disclosures, as that would count as fraudulent misrepresentation and attract a lawsuit.

• Most state laws prescribe that the disclosures should be provided before closing. As an FSBO seller, it is your duty to provide disclosures as soon as possible, since you do not have a real estate agent to do these things for you.

✍️ Pro Tip: Sellers who are selling their house the FSBO way are advised to keep their Disclosure Statement ready before listing on the MLS. It increases your credibility and reliability from a buyer’s perspective, as they get an idea of the property’s condition early on.

» More: How To List On MLS For Sale By Owner Without A Realtor

Tips To Minimize Issues in Disclosure Documents

Review And Verify	There’s a time allowance (some permit 10 days) to review and verify everything about your Purchase and Sales Agreement—also the square footage, home usage, and marketing.
Ask Questions	Ask questions when in doubt. This would help you in avoiding future troubles.
Hire A Professional Inspector	A professional inspector can help you gather backup information about the property’s condition. You can also opt for a pre-inspection before listing.
Disclose Everything	To avoid problems in your home disclosure statement disclose everything you know honestly. Even though it’s a minor issue, you must disclose it.
Get A Licensed Agent Involved	The best way to avoid disclosure issues is to get a licensed real estate agent. Agents can help you manage and assist you in the process along the way.

✍️ Pro Tip: List Your Property With Houzeo

One of the best ways to minimize problems in your seller’s disclosure is to Purchase the “Contract to Close Upgrade Package”. A Licensed broker will review your paperwork to make sure it is appropriate. In addition, you should also have the settlement agent review the paperwork so you cover all bases.

» More: Start your FREE listing NOW!

Final Word: Seller Disclosure Requirements In Texas Are Complex

Level of Complexity	Average
Is Texas a Caveat Emptor State? *	No
Is Texas a Non-Disclosure State? **	Yes

*Caveat Emptor Rule means states that it is the buyer’s responsibility to find out if there are major or minor defects with the property. And if he/she does not perform the necessary due diligence to inspect, it’s entirely not the seller’s liability if the property does not meet the expectation.

**In a nondisclosure state, the selling price of a house is not available to the masses on an open-source.

So, how difficult is it for you to deal with sellers’ disclosure in Texas?

Seller disclosures requirements in Texas are a little complicated. Selling your house FSBO is usually good but then you would have to deal with all the disclosures on your own. This demands for you to be aware of all the disclosure requirements and any mistake can cost you dearly.

✍️ Editor’s Note: Though selling your home yourself on a For Sale By Owner website can save you thousands in commission, we highly recommend you add a Flat Fee MLS listing to your marketing strategy. Check out the best Flat Fee MLS companies in Texas

Dealing with seller disclosures in Texas comes with its own set of challenges and can give sellers sleepless nights if not dealt with properly. Houzeo can help you with this.

By listing your property with Houzeo, you get access to all forms in electronic format. And that too, for FREE! Houzeo has segregated all the disclosures state-wise so that you don’t have to hunt for Texas seller disclosures separately.

Check out some of the Houzeo reviews and how it has helped customers around the US.

Frequently Asked Questions (FAQs)

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Seller's Disclosure Sellers Guide Texas