Buying and selling
Texas seller's disclosure notice rules
Texas requires most sellers of a single-family home to give the buyer a written Seller's Disclosure Notice describing what the seller knows about the property's condition. Investors meet the rule on both sides: when buying a rental, and when selling one they have never lived in. This guide explains who must give the notice, who is exempt, what happens if it is late, and the other notices that often travel with it.
Not legal advice. This summarizes Section 5.008 of the Texas Property Code and related provisions as they read on the review date below. Disclosure disputes turn on facts. A Texas real estate attorney can tell you what a particular condition requires.
Who must give the notice
Section 5.008 applies to a seller of residential real property comprising not more than one dwelling unit in Texas. The seller must give the buyer a written notice in the statutory form, or a substantially similar form that contains at least every item in the statute. The Texas Real Estate Commission publishes a version for use by license holders, and the Texas REALTORS association publishes its own.
Two points often surprise investors:
- Being a landlord is not an exemption. A seller who has never lived in the home still gives the notice, and the form asks whether the seller is occupying the property and, if not, for how long.
- Duplexes to fourplexes are outside the statute's text, because it covers property of not more than one dwelling unit. Buyers of small multifamily properties often ask for a disclosure anyway, and other disclosure duties and fraud law still apply.
Who is exempt
Section 5.008(e) lists transfers that don't need the notice, including:
| Exempt transfer | Example |
|---|---|
| Under a court order or a foreclosure sale | A trustee's sale on the first Tuesday |
| By a trustee in bankruptcy | A sale out of a bankruptcy estate |
| To a lender by a borrower | A deed in lieu of foreclosure |
| By a lender that acquired the property through foreclosure or a deed in lieu | A bank-owned (REO) sale |
| By a fiduciary administering an estate, guardianship, conservatorship or trust | An executor selling a deceased owner's home |
| Between co-owners | One partner buying out the other |
| To a spouse or a lineal relative | A parent selling to a child |
| Between spouses under a divorce decree or settlement | — |
| To or from a governmental entity | — |
| A new, never-occupied single-unit residence | A builder's first sale |
| Property where any dwelling is worth no more than 5% of the total value | Ranch land with an old house |
An exemption from the statutory form does not permit concealment. Common-law fraud and the Texas Deceptive Trade Practices Act can still apply to what a seller says or hides. An "as is" clause does not always protect a seller who misrepresented a known defect.
What the notice covers
The statutory form asks the seller to mark items as present, and conditions as known or unknown, including:
- Equipment and systems: appliances, HVAC, water heater, roof type and age, plumbing, sewer or septic.
- Known defects in the roof, foundation, walls, floors, electrical, plumbing and other components.
- Conditions such as termites or wood rot, previous structural or roof repairs, water damage, asbestos, radon, lead-based paint, aluminum wiring, previous fires and unplatted easements.
- Flood questions: flood insurance, previous flooding, water penetration from a natural flood event, and whether the property is wholly or partly in a 100-year or 500-year floodplain, floodway, flood pool or reservoir.
- Other matters: room additions or repairs without required permits, homeowners' association fees, lawsuits affecting the property, and conditions affecting health or safety.
The seller completes the notice to the best of the seller's belief and knowledge as of the date signed. If information is unknown, the seller says so, and by doing that complies with the section. The seller has no duty to disclose a death on the property by natural causes, suicide, or an accident unrelated to the property's condition, or whether a previous occupant had HIV or AIDS (§5.008(c)).
Timing, and what happens if it is late
- The deadline. The notice must be delivered on or before the effective date of the contract (§5.008(f)).
- If it arrives after the contract is signed, the statute lets the buyer terminate for any reason within seven days after receiving it.
- Under the TREC resale contract (paragraph 7B of form 20-19), the parties state whether the buyer has received it. If the seller must deliver it later and doesn't, the buyer may terminate at any time before closing and get the earnest money back. If the seller delivers it late, the buyer may terminate within seven days after receipt or before closing, whichever comes first.
That termination right is separate from the option period described in the title insurance and closing guide.
Other notices that travel with the sale
| Notice | When it applies | Source |
|---|---|---|
| Lead-based paint disclosure and EPA pamphlet | Most housing built before 1978, for sales and leases | Federal law |
| Property owners' association membership | A single-unit home subject to a mandatory association | Prop. Code §5.012 |
| Public improvement district | Property in a PID; late notice gives a 7-day termination right | §§5.014–5.0141 |
| Possible annexation | Property outside city limits | §5.011 |
| Additional tax liability | Vacant land with special appraisal, such as agricultural valuation | §5.010 |
| Pipelines under unimproved land | Unimproved land to be used for residences | §5.013 |
| Utility or water district | Property in a municipal utility district or similar district | Texas Water Code |
Buying a rental: what to do with the notice
- Read it before the option period ends, and compare it against your inspection report.
- Treat "unknown" answers from a non-occupant seller as unknown, not as "no". A landlord seller may know little about a unit the tenant occupies.
- Ask for the maintenance log, tenant repair requests and insurance claims history.
- Check floodplain status yourself on FEMA's flood map, and ask about prior flood claims. As a landlord you will owe tenants a flood disclosure under §92.0135. See landlord basics.
Selling a rental: preparing an accurate notice
- Gather repair invoices, permits and inspection reports from your ownership period.
- Ask your property manager what tenants reported.
- Disclose what you know, and say "unknown" where you don't know.
- Update the notice if you learn of a new condition before closing, and tell your agent.
Common questions
Does a Texas landlord selling a rental house have to give a seller's disclosure?
Generally yes, if the property is a single dwelling unit and no exemption applies. Owning it as a rental is not one of the listed exemptions.
Is a seller's disclosure required for a duplex in Texas?
Section 5.008 applies to property of not more than one dwelling unit, so the statutory notice does not by its terms cover a duplex. Other duties, including the federal lead-based paint rule and fraud law, can still apply.
Are wholesalers and foreclosure buyers covered?
A sale at a foreclosure auction is exempt. Wholesale assignments raise separate questions, including the equitable interest disclosure in §5.0205. Ask an attorney.
Does the notice replace an inspection?
No. The form itself says it is not a substitute for inspections or warranties the buyer may want.
Related guides
- Title insurance in Texas and the closing timeline
- Texas foreclosure auctions explained
- Texas HOA rules for landlords
The statute: Texas Property Code, Chapter 5.
Last reviewed 2026-09-17