Sellers Disclosure Texas
Seller Lied On Property Disclosure Statement
Seller Responsibility After Closing
The first thing you have to know when buying property is the condition of the property. You want to know whether there are any defects, needed repairs and adverse conditions that may influence your decision to buy or not to buy. But sellers often want to sell property “as is” without offering any warranties or making any repairs.
So, many sellers do not make a full disclosure of property conditions in the contract or the disclosure notice. Sellers should provide a full, accurate and complete disclosure about the real property or risk lawsuits.
What The Law Says
Can Buyer Sue Seller After Closing
Sellers are required to present a signed disclosure notice in most residential sales. The Section 5.008 of the Property Code says:
“(a) 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.”
The seller’s disclosure must describe the state and condition of appliances, equipment and other features that exist on the property. They must disclose any defects or malfunctions that they know. Other things sellers need to disclose include:
- A termite issue that needed treatment
- Flooding that occurred recently
- Critical repairs that have not been made
- Any amount owed to the local HOA
- Lawsuits against the property
- Previous fires and the damage they caused
- Any violations of deed restrictions
- Conditions that may affect the health of an individual
The most common defect reported by most listings in Texas is water penetration from flooding, bust pipes and storms. The seller’s disclosure notice is often abbreviated as TREC disclosure.
Exceptions To The Disclosure Requirement
Real Estate Disclosure Laws Texas
According to Property Code Section 5.008(e) a Seller’s Disclosure Notice is not required when transferring real property:
- Pursuant to a court order or foreclosure sale;
- By a trustee in bankruptcy;
- To a mortgage by a mortgagor or successor in interest, or to a beneficiary of a deed of trust by a trustor or successor in interest;
- By a mortgage 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;
- By a fiduciary in the course of the administration of a decedent’s estate, guardianship, conservatorship, or trust;
- From one co-owner to one or more other co-owners;
- Made to a spouse or to a person or persons in the lineal line of consanguinity of one or more of the transferors;
- 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;
- To or from any governmental entity;
- Of a new residence of not more than one dwelling unit which has not previously been occupied for residential purposes; or
- Of real property where the value of any dwelling does not exceed five percent of the value of the property.