Texas Home Seller Disclosure Requirements

Texas has a structured disclosure regime built around a single statute (Property Code Section 5.008) and a small set of district and location-specific notices that attach when relevant. This page walks through everything a Texas seller of a 1-unit residential property is required to disclose, what's exempt, and what happens if you don't.

General information only, not legal advice. Texas disclosure obligations are enforced by statute, case law, and TREC rules. Work with a Texas real estate attorney or licensed broker on any specific situation.

The core requirement: Property Code Section 5.008

Texas Property Code Section 5.008 requires the seller of residential real property with not more than one dwelling unit to deliver a written Seller's Disclosure Notice to the buyer. The Texas Real Estate Commission (TREC) publishes a standard form that satisfies the statutory requirement; while the TREC form is not technically mandatory, it is the standard used in essentially every residential transaction.

The notice covers six categories of disclosure:

• Equipment, fixtures, and improvements: presence and working condition of appliances, HVAC, water heater, plumbing, electrical, garage door, sprinkler, pools, spas, and other fixtures conveying with the sale.
• Smoke detectors: presence and working condition.
• Structural and system defects: walls, ceilings, floors, foundation, roof, plumbing, electrical, HVAC, and other major components.
• Environmental hazards: termite damage, flooding history, aluminum wiring, asbestos, lead-based paint, radon gas, mold.
• Repair status: any item, system, or equipment in need of repair.
• Other property matters: alterations or repairs without permits, deed restriction violations, common-area disputes, lawsuits involving the property, encroachments, easements, and ongoing or settled litigation affecting title.

Location-specific notices (when applicable)

MUD (Municipal Utility District) notice

If the property is in a Municipal Utility District, the seller must provide written notice of the district's existence, the current tax rate, and any outstanding bonds. Common in newer suburban developments around Houston, Austin, Dallas-Fort Worth, and San Antonio. The MUD notice is technically the responsibility of the district itself, but in practice it is delivered with the seller's disclosure packet.

PID (Public Improvement District) notice

Similar to MUD but used for property tax-funded improvement districts. If the property is in a PID with active special assessments, the seller must disclose the assessment amount and remaining balance.

Coastal Area Property Notice

For properties in a designated coastal area subject to the Open Beaches Act or coastal construction restrictions, sellers must provide a Coastal Area Property Notice. Applies primarily to Galveston, Brazoria, and other Gulf Coast counties.

Annexation notice for ETJ properties

Properties in a city's Extraterritorial Jurisdiction (ETJ) but outside the city limits face potential future annexation. Sellers must disclose ETJ status if the property is in an unincorporated area within a city's ETJ. This affects suburbs of Austin, Houston, Dallas, San Antonio, and other growing Texas metros.

Statutory tax district notice

Any special tax district affecting the property must be disclosed with the rate and any outstanding bonds.

Lead-based paint disclosure (federal)

Federal law (42 USC 4852d) requires lead-based paint disclosure for homes built before 1978. The form must be signed by the seller and acknowledged by the buyer, with a 10-day inspection period for the buyer.

Exemptions from the disclosure requirement

Section 5.008 specifically exempts several categories of transfers from the disclosure requirement:

• Transfers between co-owners.
• Transfers to a spouse or direct lineal descendant (parent, child, grandparent, grandchild).
• Transfers between spouses in a divorce.
• Transfers under a court order.
• Transfers by foreclosure, deed in lieu of foreclosure, or trustee's sale.
• Transfers from an executor or administrator to the estate's heirs.
• Transfers of property never occupied as a residence.
• New construction sold by the builder (the builder warranty covers a different scope).

If your sale falls into one of these categories, the formal Section 5.008 disclosure is not required, though the federal lead-based paint disclosure still applies for pre-1978 homes.

Delivery timing

The disclosure must be delivered to the buyer on or before the execution of the purchase contract. If unforeseen circumstances prevent earlier delivery, the disclosure must be delivered within a reasonable time after contract execution. The standard TREC contract includes specific provisions about disclosure timing and buyer remedies if delivery is late or incomplete.

Consequences of non-disclosure

Texas takes seller disclosure seriously, particularly for material defects the seller knew about. Potential consequences:

• Statutory damages: Section 5.008(c) allows the buyer to terminate the contract for cause if the disclosure is not delivered on time or is materially false.
• Common-law fraud claims: a buyer who later discovers a material undisclosed defect that the seller knew about can sue for fraud, fraudulent concealment, or negligent misrepresentation. Damages can include actual repair cost, consequential damages, and in some cases attorney's fees.
• Punitive damages: available for fraudulent concealment cases.
• DTPA claims: the Texas Deceptive Trade Practices Act allows buyers to recover treble damages in some circumstances.
• Rescission of the sale: in egregious cases, courts can unwind the transaction entirely.

The statute of limitations on most disclosure-related fraud claims in Texas runs from when the buyer discovers or should have discovered the defect, not from the closing date.

The disclosure folder you should build before listing

Texas sellers who walk into closing with documentation already organized substantially reduce both the disclosure form completion time and the post-sale litigation risk. Items to gather:

• Permit records for every renovation, addition, deck, or finished improvement.
• Receipts for major repairs (roof, HVAC, water heater, electrical, plumbing, foundation).
• Engineer reports for any foundation or structural work (Texas clay soils make foundation work especially common and well-documented).
• Termite treatment history (Texas has aggressive termite populations).
• Flood history and any flood damage records.
• Insurance claims filed on the property.
• HOA documents if applicable, including resale certificate.
• Well water testing records if applicable.
• Survey showing property lines, easements, and encroachments.

For a deeper look at what records buyers and their inspectors specifically ask for at closing, see What Maintenance Records Do Home Buyers Ask For at Closing? For the comparable California disclosure framework, see California Home Seller Disclosure Requirements.

How agents typically handle Texas disclosures

Most Texas listing agents use the TREC standard disclosure packet, which bundles Section 5.008 disclosure with the federal lead-based paint disclosure and any applicable district notices. Common additions include broker-specific addenda, third-party inspection results if available, and HOA documents.

Texas is technically a "buyer beware" state in legal tradition, but Section 5.008 and Johnson-Davis-style fraudulent concealment claims have substantially eroded the practical effect of that doctrine. The cost of over-disclosing is near-zero. The cost of under-disclosing can be a five- or six-figure judgment.

The bottom line for Texas sellers

Section 5.008 sets the structured floor. Honest answers and complete documentation are the actual standard. Build the record while you own the home, keep every receipt, permit, and engineer report, and walk into the listing process with most of what you need already organized.