In many residential sales, sellers are required to provide information about the condition of the property, which benefits the buyer and seller.
It’s Required by Texas Law
Sellers of a single-unit residential property are required to provide a seller’s disclosure notice to a buyer. The notice details what the sellers know about the property at the time they complete and sign the notice. You’ll see more than one version of the notice. The Texas Real Estate Commission has one, which meets the law’s minimum requirements, and Texas REALTORS® has one, which provides more information for buyers and serves as a risk-reduction tool for sellers.
What’s in the Notice?
The five-page Texas REALTORS® Seller’s Disclosure Notice covers a wide range of topics. It asks sellers to list the appliances and systems in the property, current defects, past insurance claims, past inspection reports, and other conditions of the property.
How it Helps Sellers
The notice provides sellers a place to document and share their knowledge of a property and can reduce sellers’ risk of being sued. If a buyer claims after closing that he didn’t know about previous termite damage, the sellers can point to Section 3 of the notice where they indicated
the termite damage—assuming the sellers filled out the notice correctly.
How it Helps Buyers
It’s impossible to foresee a house’s every potential problem. A disclosure notice that details known conditions and defects can help provide a more complete picture of a property. Buyers may, for example, learn that a house has well water, plumbing problems, and aluminum wiring.
That information can be used for inspections to further understand the extent of any issues.
Need help understanding the seller’s disclosure or other aspects of a real estate transaction? Talk to your REALTOR®.
There are 11 exceptions to win the sellers disclosure is not required to be given. Or 11 exceptions to win the sellers disclosure is not required This section does not apply to a transfer: (1) pursuant to a court order or foreclosure sale; (2) by a trustee in bankruptcy; (3) to a mortgagee by a mortgagor or successor in interest, or to a beneficiary of a deed of trust by a trustor or successor in interest; (4) by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to… Read more »
wished you had included some of the remarks in the legal faq’s such as the exemptions and that not living in the house is not an excuse for not providing a completed sellers disclosure in some circumtances.
Our consumer-facing communications are intended to provide helpful information without taking the place of your expertise. Having you, the REALTOR®, discuss exemptions or other guidance specific to a client’s property keeps you at the forefront of the transaction.
In the Texas REALTORS® Seller’s Disclosure Notice, section 7 asks about previous written inspection reports. If seller checks “YES”, but does not attach the report, is the notice still considered delivered (complete)?
I liked that you said that a seller’s disclosure is important to consider when selling your property. I would imagine that hiring a professional real estate agent would help you to better understand the paperwork and process. I would be sure to hire a professional to help me understand all of my options when selling my property.