Seller’s Disclosure In A Texas Real Estate Transaction

Have you ever pondered why we need a Seller’s Disclosure Notice in a Texas real estate transaction?

One of the most important reasons for the seller is that, in Texas, it is required by the law. Section 5.008 of the Texas Property Code requires “a seller of residential property comprising not more than one dwelling unit located in this state to give to the purchaser of the property” a written notice of the property’s condition.

Most of the reasons for a seller to provide a Seller’s Disclosure Notice to the buyer are legal but It’s always appropriate for a seller to honestly describe to the buyer whatever they are selling before any funds change hands. When the seller provides a Seller’s Disclosure Notice, they are not only complying with the law but they are also improving their chances to avoid any future litigation after the sale. If the condition of the property is accurately disclosed by the seller, then it limits the buyer’s ability to initiate any future legal actions against the seller for items that were not disclosed on the Seller’s Disclosure Notice. The notice can be a significant risk-reduction tool.

From the buyer’s perspective, it’s an important document to review and consider. It should provide a description of any defects or malfunctions, unrepaired insurance claims, flood damage, etc. Texas REALTORS® provides a form entitled Seller’s Disclosure Notice (TXR 1406). The form is essentially a copy of the statutory minimum information required in Section 5.008 of the Texas Property Code but also has added provisions that provide more information for buyers and is designed to serve as a risk-reduction tool for sellers. The Texas REALTORS® form complies with Texas statutory requirements related to seller’s disclosure and includes the following sections.

  • Section 1. The Property has the items marked below.
  • Section 2. Are you (Seller) aware of any defects or malfunctions in any of the following?
  • Section 3. Are you (Seller) aware of any of the following conditions?
  • Section 4. Are you (Seller) aware of any item, equipment, or system in or on the Property that is in need of repair, which has not been previously disclosed in this notice?
  • Section 5. Are you (Seller) aware of any of the following conditions?
  • Section 6. Have you (Seller) ever filed a claim for flood damage to the Property with any insurance provider, including the National Flood Insurance Program (NFIP)?
  • Section 7. Have you (Seller) ever received assistance from FEMA or the U.S. Small Business Administration (SBA) for flood damage to the Property?
  • Section 8. Are you (Seller) aware of any of the following?
  • Section 9. Seller has not attached a survey of the Property?
  • Section 10. Within the last 4 years, have you (Seller) received any written inspection reports from persons who regularly provide inspections and who are either licensed as inspectors or otherwise permitted by law to perform inspections?
  • Section 11. Check any tax exemption(s) which you (Seller) currently claim for the Property.
  • Section 12. Have you (Seller) ever filed a claim for damage, other than flood damage, to the Property with any insurance provider?
  • Section 13. Have you (Seller) ever received proceeds for a claim for damage to the Property (for example, an insurance claim or a settlement or award in a legal proceeding) and not used the proceeds to make the repairs for which the claim was made?
  • Section 14. Does the Property have working smoke detectors installed in accordance with the smoke detector requirements of Chapter 766 of the Health and Safety Code?

Whether you choose a resale home or a new construction home, buying a house is an exciting investment! Make sure you consider the options to make the best choice for you so that your new house becomes a great home. To help you consider all of the things that you should examine before buying a home, contact ROCK Properties Realty and we’ll help you make sure that your home buying experience becomes a wonderful experience.

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