What Are The Legal Requirements For Seller’s Disclosures In Texas

Selling a house is tough enough, emotionally and practically, without worrying about the buyer’s perspective. Nevertheless, Texas law requires you to do so by providing a seller’s disclosure before the sale. This article explains what the seller’s disclosure is, and how it works, including:

• What must be disclosed when selling property in Texas, and what happens when you do not. 
• The exceptions to seller disclosure obligations. 
• An example of the kind of disputes that can arise over a failure to disclose something. 

What Is A Seller’s Disclosure?

Texas law requires that when you sell a home or a residential property, you provide a seller’s disclosure. While it does not have to follow a standard format, we can provide a notice form that has everything that is legally required, which can make it easier to do so correctly. 

The disclosure gives potential buyers a snapshot of the current condition of the property and its history. It is supposed to contain, among other things, any

• Repairs, 
• Improvements, 
• Defects, 
• Problems with any part of the home, 
• Anything that needs to be repaired, 
• Past repairs you have done. 

For example, if there has been water damage, you must state that, as well as whether it was adequately remediated to ensure there will be no mold. 

These are all things that sellers want to know but cannot necessarily find out about by walking through the property, such as the state of the wiring or any lead-based paint. There are a number of things that people have concerns about but have no way to know unless they get the information from the seller who has actually lived there.

What Must Be Disclosed When Selling Residential Property In Travis County, Texas?

The complete list is quite exhaustive, and examples can be found on the base notice, but the basic principle is simple. Anything that is wrong with the property or that needs repair that you, as a buyer, would want to know about. In fact, if you know, or should have known, about the issue, you can be held liable for failing to disclose it. 

What Happens If A Seller Fails To Disclose Known Defects?

If, at any point in the past, you discovered something or you had an inspection done that revealed something, you have to share it. Anything that you know about the property must be disclosed. It is always much better to over-disclose than to try and hold something back. 

If you try, it will come back to bite you in the end. This is because you can be held liable under the law for a failure to disclose. For example, it could lead to a breach of contract claim or a claim of fraud in a real estate transaction. You could end up liable for a lot more than just a lost sale.

Attorney Farren Sheehan is a highly experienced Texas real estate lawyer who has helped countless clients just like you navigate seller obligations and accusations of failure to disclose. Texas real estate laws and regulations have no secrets to attorney Farren Sheehan, and she is happy to share her wisdom so you know what to do and what not to do when trying to buy or sell property in Texas. 

Is someone accusing you of a failure to disclose as a seller? Contact Farren Sheehan today to schedule an initial consultation to discuss your options.

Are There Exceptions To Disclosure Requirements For Certain Property Sales In Texas?

There are times when you, as a seller, might not know or be expected to know what is wrong with a property. For example 

• If you have not lived there in the past six months, 
• If the property was a foreclosure, 
• If the property was recently inherited and you never lived in it

You would have no way of knowing such information. 

Similarly, when you are transferring between co-owners in a home or selling to a family member, it is usually not required. This is because it is presumed that you would have already told people about these issues if they did not already know about them.

What Role Do Travis County Real Estate Agents Play In Ensuring Proper Disclosures?

Real estate agents are aware of these rules and regulations. They provide the standardized form and give instructions (or they are supposed to) on how to fill out the form. 

That said, if you have a question about whether something should be disclosed, a real estate agent does not have the same legal qualifications (and unbiased perspective) as a real estate attorney. If you cannot reach one when in doubt, over disclosure is always going to be the best option.

What Are Two Examples Of Seller’s Disclosure Disputes In Texas?

Here are two very different examples of seller disclosure laws and lawsuits in action. 

Case 1. Water Damage Debacle

I had a client who sold her mother-in-law’s home. The mother-in-law had had a water leak repaired a few years earlier and never mentioned it to the daughter-in-law since they were not that close, but it had been repaired. The new owners later discovered it had been repaired incorrectly and sued the real estate agent and the seller. They argued that the daughter-in-law should have known about the repair because they were family. The judge ruled in favor of the new owners. 

Case 2. Carpet Catastrophe

In another case, a woman had kept 13 dogs in her home. The buyer fully knew this and visited several times; she knew the state of the carpeting. In fact, there was an allowance given to put in new flooring because there were 13 rescue dogs, one of which was incontinent. So they knew the flooring was urine-soaked and would have to be replaced. The buyer still sued afterward because she underestimated how bad the carpet was and failed to put in any new carpeting (despite the allowance to do so). Unfortunately, since litigation is so expensive, it did not come down to who was right or wrong but just to the cheapest option. And sometimes, paying out a lawsuit is cheaper than litigating it.

Moral of the story? Don’t worry about what is reasonable, what you have said out loud, or what the buyer has seen. Disclose absolutely everything you possibly can in writing. 

Trying to sell a home in Texas? We can help you with your seller’s disclosure or any resulting lawsuits.

For more information on What Are The Legal Requirements For Seller’s Disclosures In Texas, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (512) 355-0155 today.