A Texas residential real estate purchase agreement (“Contract for Sale and Purchase of Real Estate”) is a contract which commits a buyer to an offer to purchase real estate, according to specific terms agreed by the buyer and seller. Negotiated specifics include the purchase price, financing method, closing date, and more.
Do Sellers in Texas Have To Disclose Property Defects?
Texas does require real estate sellers to disclose any material defects with a property. In most cases, this is through a standardized disclosure form provided through the Real Estate Commission by statute, but any disclosure which provides the required information is valid, such as this form commonly in use by Texas REALTORS®.
This disclosure applies only to single-unit real estate, and is only for the use of the buyer in making a purchasing decision. It does not constitute a legal warranty for the property, which must separately be negotiated.
Exceptions to the Disclosure Rules in Texas
Any fact which might materially affect the value of a property potentially counts as a material defect, except for the following:
- Whether anyone at the property was ever diagnosed with HIV, HIV-related illness, or AIDS
- Whether the property was ever the site of a death from natural causes, suicide, or accident unrelated to the condition of the property
Texas also exempts the following common transfers, among others, from the standard disclosure form requirement:
- Court-ordered sales and transfers
- Sales by foreclosure or other debt default
- Transfer as part of the execution of a will or estate
- Transfer to a spouse, parent, or child
- Transfers to or from a government entity
Required Seller Disclosures in Texas
Texas sellers of residential real estate must make the following disclosures, as appropriate, in order for a real estate purchase agreement to be considered legally binding:
- Texas Real Estate Commission Seller’s Disclosure Notice: Discloses material defects with a property that are known to the seller at the time of sale, and details any potential issues and conditions that may affect the value of the property. The Texas REALTORS® also use a similar but more comprehensive version.
- Lead-Based Paint Disclosure: Any home constructed earlier than 1978 must come with a disclosure upon the transfer of the property which includes any information about the presence of lead on the premises, as well as educational materials that communicate the health risks associated with lead exposure.
Sources
- 1 Tex. Prop. Code § 5.008(a) & (b)
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A seller of residential real property comprising not more than one dwelling unit located in this state shall give to the purchaser of the property a written notice as prescribed by this section or a written notice substantially similar to the notice prescribed by this section which contains, at a minimum, all of the items in the notice prescribed by this section.
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[T]his notice… is not a warranty of any kind[.]
Source Link - 2 Tex. Prop. Code § 5.008(c)
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A seller or seller’s agent shall have no duty to make a disclosure or release information related to whether a death by natural causes, suicide, or accident unrelated to the condition of the property occurred on the property or whether a previous occupant had, may have had, has, or may have AIDS, HIV related illnesses, or HIV infection.
Source Link - 3 Tex. Prop. Code § 5.008(e)
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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 a power of sale under a deed of trust or a sale pursuant to a court ordered foreclosure or has acquired the real property by a deed in lieu of foreclosure;
(5) by a fiduciary in the course of the administration of a decedent’s estate, guardianship, conservatorship, or trust;
(6) from one co-owner to one or more other co-owners;
(7) made to a spouse or to a person or persons in the lineal line of consanguinity of one or more of the transferors;
(8) between spouses resulting from a decree of dissolution of marriage or a decree of legal separation or from a property settlement agreement incidental to such a decree;
(9) to or from any governmental entity;
(10) of a new residence of not more than one dwelling unit which has not previously been occupied for residential purposes; or
(11) of real property where the value of any dwelling does not exceed five percent of the value of the property.
Source Link
