Seller’s Disclosure in Texas: Who Has to Disclose, and Why You Should Disclose More
In Texas, most people selling a home have to give the buyer a written Seller’s Disclosure Notice. It describes what the seller knows about the home’s condition. The law sets a minimum, but the minimum isn’t always the smart choice.
Who has to disclose
If you’re selling a home with one dwelling unit, you’re required to fill out and deliver the Seller’s Disclosure Notice before the contract becomes effective. That includes owners who rented the house out or never lived in it. You answer based on what you actually know.
You can read the requirement yourself in Section 5.008 of the Texas Property Code, posted on the Texas Legislature’s website (Texas Property Code Chapter 5).
The exemptions people get wrong
The law lists certain sales that don’t need the form, and many sellers assume they’re on the list when they aren’t.
- Executors versus heirs. An executor or court-appointed administrator selling for an estate is exempt. Heirs who inherited the house and are selling it themselves are not.
- “As is” doesn’t mean “no disclosure.” Selling a home as is means you won’t make repairs. It doesn’t let you leave known problems off the form.
- Being exempt from the form isn’t permission to hide things. Even exempt sellers can face serious trouble for knowingly concealing a problem.
- Other exempt sales include foreclosures and court-ordered sales, transfers between co-owners or to a spouse or child, and new homes no one has lived in yet.
Some notices are required even when the Seller’s Disclosure isn’t, such as the lead-based paint notice for homes built before 1978, and notices for homes in a MUD or PID.
What you don’t have to disclose
Texas law says you don’t have to disclose a death on the property from natural causes, suicide, or an accident unrelated to the home’s condition. You also should never disclose a past occupant’s health condition, such as HIV, or anything about who lived there. Disclosure is about the property, not the people.
Why disclosing more is usually smarter
Here’s what I tell every seller: if something happened at the house, you can bet the neighbors know about it. Sooner or later, one of them will mention it to the new owner.
If the buyer hears it from a neighbor before closing, the deal can fall apart. A buyer who feels blindsided starts wondering what else they weren’t told, and every repair request gets harder from there.
If the buyer hears it after closing, it doesn’t matter whether you were legally required to tell them. What they remember is that you didn’t. That can lead to a dispute, or at the very least, a buyer who feels deceived.
A known issue a buyer reads about up front rarely kills a deal. They can factor it into their offer and move forward with confidence.
When in doubt, disclose
If there’s any doubt in your mind about whether something should be disclosed, disclose it. Past repairs, insurance claims, prior inspection reports, and anything the neighbors are likely to talk about all belong on the table. Being upfront protects you, and it helps the buyer trust everything else you’ve told them.
Foundation work is the clearest example of all. If your home has had any, see my article on foundation repairs and selling your home in Texas.
If you’re thinking about selling and have questions about disclosures, I’m happy to help.
I’m not an attorney, and this isn’t legal advice. If you have a specific question about your situation, a real estate attorney can review it with you.
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About the Author
Christina Kang is a broker associate with CENTURY 21 Judge Fite Company, serving buyers and sellers across the Dallas-Fort Worth Metroplex, from Denton County to Johnson County. A former state certified residential appraiser, she holds the GRI, MCNE, and CLHMS designations and brings a hands-on understanding of how homes are built, updated, and valued. She lives in Grand Prairie, where she has renovated much of her own home.