What Do I Have to Disclose When Selling a Home in Texas? A Clear Guide for Sellers

What Do I Have to Disclose When Selling a Home in Texas?

If you’re thinking about selling your home in Texas, one of the most common questions is:

“What exactly am I legally required to disclose?”

Texas law (Section 5.008 of the Texas Property Code) requires most sellers of residential property (1–4 units) to deliver a Seller’s Disclosure Notice before or at contract. Most agents use the Texas REALTORS® Seller’s Disclosure Notice (TXR-1406).

But let’s simplify what that really means.

You Must Disclose Known Material Defects

The key word is known.

You are not required to hire an inspector before listing.
You are required to disclose what you know.

The disclosure form asks about:

• Roof condition and prior repairs

• Foundation issues or structural movement

• Electrical and plumbing systems

• HVAC systems

• Water damage (even if not from flooding)

• Termite damage or prior treatment

• Previous fires

• Prior foundation repairs

If something is not working properly or has been repaired due to a defect, it likely needs to be disclosed.

When in doubt — disclose.

Flooding & Water History (Very Important in Texas)

Especially in the Houston, Spring, and Pearland areas, this section matters.

Sellers must disclose if:

• The property has flooded (natural or reservoir-related)

• Water has penetrated the structure

• The home is in a 100-year or 500-year floodplain

• Flood insurance claims were filed

• FEMA or SBA flood assistance was received

Water history is one of the most litigated post-closing issues in Texas. Transparency protects you.

Environmental & Hazard Conditions

The disclosure also asks about known conditions such as:

• Asbestos

• Radon

• Lead-based paint (if built before 1978)

• Underground storage tanks

• Soil movement

• Methamphetamine manufacturing

• Mold remediation

If repairs were made for environmental hazards, documentation may be required.

Insurance Claims & Unrepaired Damage

You must disclose:

• Prior insurance claims

• Whether you received insurance proceeds and did not complete repairs

This is an area sellers often overlook — and buyers’ inspectors often uncover.

What About Deaths, Murders, or “Stigmatized” Properties?

This is where many sellers get nervous.

In Texas, the law distinguishes between material defects and psychological stigma.

Under Texas law, you generally do NOT have to disclose:

• Death due to natural causes

• Suicide

• Accidental death unrelated to the property’s condition

Texas does not automatically require disclosure of a murder or death simply because it occurred in the home.

However, here’s where nuance matters:

You MUST disclose if:

• The death was caused by a property defect (example: carbon monoxide poisoning due to faulty venting)

• There is a material condition tied to the event

• A buyer asks you a direct question (you cannot misrepresent facts)

Also — even if something is not legally required, it can still affect market perception.

Today’s buyers Google addresses. News stories live forever online.

Sometimes strategy matters as much as statute.

Other Issues That Can Create a “Cloud”

While not all are automatic legal disclosure requirements, these can impact marketability:

• Unpaid liens

• HOA violations or pending litigation

• Boundary disputes or encroachments

• Unpermitted additions

• Divorce or probate issues

• Prior drug activity

True “clouds on title” (like liens or probate issues) must be resolved before closing because title companies will not insure over them.

The Most Important Rule

You are not required to:

• Speculate

• Diagnose issues

• Guarantee condition

You are required to:

Disclose known material facts
Answer honestly
Avoid misrepresentation

Most post-closing lawsuits happen not because something happened…

But because it wasn’t disclosed.

Final Thoughts for Texas Sellers

Selling in Texas is not about hiding problems.

It’s about:

• Proper disclosure

• Risk reduction

• Strategic positioning

• Professional guidance

If you’re thinking about selling in the Houston metro area, I walk my sellers through the disclosure form line-by-line to ensure:

• You’re protected

• You’re compliant

• You’re positioned to negotiate confidently

Because protecting you legally is just as important as maximizing your price.

—

Chris Blackwell, ABR, SRS, PSA, SFR
One Innovative Group
“We treat your home as if it were our own.”