Texas · Property Code §5.008Texas Seller's Disclosure Notice: what it covers, when it's due and who is exempt

Texas Property Code §5.008 requires a seller of residential real property with no more than one dwelling unit to give the buyer a written notice that reads substantially like the statutory Seller's Disclosure Notice – or one that contains at least all of its items. The form says it discloses the seller's knowledge as of the date signed and is not a warranty or a substitute for inspections. It covers: whether the seller occupies the home; a checklist of items and systems (appliances, HVAC, plumbing, septic or public sewer, pool, gas piping, water supply, roof type and age) and any known not working; working smoke detectors under Health and Safety Code chapter 766; known defects in walls, ceilings, floors, roof, foundation, plumbing, electrical and other structural parts; conditions such as termites and wood rot, previous structural or roof repair, hazardous waste, asbestos, radon, lead-based paint, aluminum wiring, previous fires, unplatted easements, soil movement, a single blockable main drain in a pool or spa and previous use for making methamphetamine; items needing repair; flood information – present flood insurance, reservoir flooding, previous water penetration from a natural flood and whether the property is wholly or partly in a 100-year or 500-year floodplain, floodway, flood pool or reservoir; any flood insurance claim and any FEMA or SBA flood assistance; unpermitted additions, HOA fees, shared common areas, deed-restriction or ordinance violations, lawsuits, health or safety conditions, large rainwater systems and groundwater or subsidence districts; plus coastal and military-installation notices. The seller has no duty to disclose a natural death, suicide or accident unrelated to the property's condition, or that an occupant had HIV or AIDS (§5.008(c)). The notice is completed to the best of the seller's belief and knowledge, and marking information as unknown complies (§5.008(d)). It must be delivered on or before the effective date of the contract; if the contract is signed without it, the buyer may terminate for any reason within seven days after receiving the notice (§5.008(f)). Exempt transfers include court-ordered and foreclosure sales, transfers by a bankruptcy trustee, lender-owned (REO) sales after foreclosure, sales by a fiduciary administering an estate, guardianship or trust, transfers between co-owners, to a spouse or lineal relative, in a divorce, to or from a government, sales of a never-occupied new home, and property where any dwelling is worth no more than 5% of the property's value (§5.008(e)).