Texas Home Sellers' Obligation to Disclose Important Information: What Houston Sellers are Required to Disclose
In Texas, the Seller's Disclosure Notice is a crucial document that requires sellers to disclose any known material defects or issues that could affect the property’s value or safety. This comprehensive form, mandated by state law, aims to provide transparency and protect buyers, while also minimising post-sale legal risks for sellers.
When selling a residential property, sellers in Texas are obligated to disclose a wide range of information. This includes structural problems such as foundation cracks and roof damage, defects or malfunctions in plumbing, electrical systems, and HVAC, past or current water intrusion, flooding, or leaks, pest or termite damage and any treatments performed, environmental hazards like asbestos, lead-based paint, and radon, insurance claims related to flood or storm damage, legal issues such as zoning violations, boundary disputes, easements, unpaid HOA dues, deed restrictions, and pending litigation.
Sellers are also required to provide utility and infrastructure information, including sources and status of water, sewer, electricity, road access, and whether the property is in a floodplain. If a property is located in a high-risk flood zone, this must be disclosed to buyers.
Sellers must complete the disclosure based on their actual knowledge or belief; if unsure of certain conditions, they can mark those items as “unknown.” The notice must be delivered before or at the same time as signing the sales contract, or the buyer has a right to cancel within seven days afterward.
In Houston, sellers have additional disclosure requirements. They must disclose if their property has ever experienced water damage, including from hurricanes, heavy thunderstorms, or busted pipes. Sellers in Houston must also disclose any insurance claims related to storm damage, flooding, fire, break-ins, or major repairs.
Sellers are legally bound to disclose any serious hazardous materials, such as a house ever used as a meth lab or contamination that could make you sick. Failure to properly complete the disclosure notice can result in legal and financial consequences for the seller.
The disclosure requirement applies to most single-family homes, condominiums, and residential properties with one to four units. Homeowners association information, including fees, restrictions, and any pending assessments or violations, must also be disclosed.
Buyers who discover undisclosed material defects after closing may pursue legal action for damages, including repair costs, property value diminution, and legal fees. Texas courts have consistently held sellers liable for material omissions or misrepresentations in disclosure notices.
In summary, the Texas Seller's Disclosure Notice is an essential tool for protecting both buyers and sellers in real estate transactions. It covers everything from structural issues and environmental hazards to neighbourhood nuisances and property history, ensuring a more informed and transparent transaction for all parties involved.
[1] https://www.texasattorneygeneral.gov/consumer-protection/real-estate-and-property/seller-disclosure [2] https://www.epa.gov/lead/lead-based-paint-disclosure-law [3] https://www.texasattorneygeneral.gov/consumer-protection/real-estate-and-property/seller-disclosure-right-to-cancellation [4] https://www.texasattorneygeneral.gov/consumer-protection/real-estate-and-property/homeowners-association-disclosure [5] https://www.texasattorneygeneral.gov/consumer-protection/real-estate-and-property/seller-disclosure-notice-and-right-to-cancellation-faqs
When it comes to real estate transactions in Texas, sellers are not only required to disclose information about the property's structural issues and environmental hazards, but also utility and infrastructure information, such as the sources and status of water, sewer, electricity, and road access. This is to ensure transparency and minimize post-sale legal risks for both parties (finance).
Sellers are also legally bound to disclose any material defects or issues that could affect the property’s value or safety, beyond the mere physical structure. This includes previous water damage, insurance claims, and the presence of hazardous materials like lead-based paint or asbestos (lifestyle, real-estate).
If a property is located in a high-risk flood zone, this must be disclosed to buyers, as it could affect future investing opportunities and home-and-garden decisions. Failure to properly complete the disclosure notice can result in legal and financial consequences, underscoring the importance of this document for both buyers and sellers (business).
