832-831-0833
Buying a home may be the most significant purchase you will ever make. Usually, sellers by law must disclose what they know about a home. However, there are instances where sellers are exempt from telling you what they know about their house. Let’s see what exceptions exist to the seller’s disclosure in Texas.
Especially in the seller’s market, buyers jump through hoops to get a contract on a home. When you put down extra money just to get the contract, it’s easy to overlook details about disclosures. However, these details matter and can seriously affect your financial bottom line in the long run.
The Seller’s Disclosure Statement
With so many laws surrounding everything related to real estate, it can be difficult to keep up with what sellers must tell you about their house. You may wonder if it is ever okay for the seller to keep what they know about a house to themselves.
When you buy a home in Texas, the seller completes the disclosure statement to the best of their belief and knowledge on the date they complete and sign it. If there are areas of the disclosure that the seller does not have information about, they can write that they do not know the answer.
You receive this disclosure as important information to understand the conditions of a future home. Inspections cannot tell you everything about a house. Disclosures are crucial to your knowledge before you buy.
When the Seller’s Answer is “Unknown”
The seller may not have answers to some questions and truly be at a loss about.” what to say. In those cases, the seller may write “unknown”. Whether they know every answer or only most of them, if the seller indicates that an answer is “unknown,” the disclosure is still considered complete by law. The seller writes the disclosure to the best of their ability to know or believe things about the property.
A complete disclosure does not mean that you know everything about the house. If the answer to a question on a seller disclosure is “unknown,” you may want to dig a bit deeper. If you have no proof that the seller knew anything about a problem, they could potentially lie about what they know. Their thinking may be that you could never prove in a court of law that they had knowledge beforehand.
Even just asking the real estate agent to talk with clients about the issue could be helpful. Perhaps the sellers do not realize that if they have seen a problem, even an insignificant one, they legally must disclose fully.
No Disclosure For These Items
There are some events and situations that a seller needs not disclose. A seller or seller’s agent does not by law need to disclose 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.
- Whether a previous occupant had, may have had, has, or may have AIDS, HIV-related illnesses, or HIV infection.
When the Seller Is NOT Required to Disclose
If someone transfers the property to someone else or if it is a particular type of sale, the seller by law does not have to complete property disclosure questions. This means that you do not receive a seller disclosure statement at all.
These types of transfers and purchases are when it is imperative to contact your attorney. Ensure that your financial situation in owning a property is not at risk. There is no obligation for the seller to disclose if the house is transferred or sold:
- By court order or foreclosure sale
- To or from any governmental entity
- As a new residence of not more than one dwelling unit which has not previously been occupied for residential purposes
- As a real property where the value of any dwelling does not exceed five percent of the property’s value.
- By a trustee in bankruptcy
- To a mortgagee by a mortgagor or successor in interest
- To a beneficiary of a deed of trust by a trustor or successor in interest
- 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 in accordance with 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 order of legal separation or from a property settlement agreement incidental to such a decree
Late Disclosures
If the seller does not give you the seller’s disclosures on or before you sign the contract, you can cancel the contract for any reason within seven days of receiving the notice. This law protects you as a buyer. The law makes it clear to sellers that they must give you disclosures about the home. If they put off the disclosure process with excuses or simply say they have no knowledge, you have rights as a buyer. Situations in which a seller does not disclose are dangerous for buyers.
Let’s say you receive the disclosures the day that you move into your new home. However, the air conditioning does not work, and it’s the middle of summer. You have the right to cancel the contract and receive back your earnest money.
Another example of negligence on an owner’s part would be a landlord claiming they haven’t lived in the house in 5 years and therefore don’t have any disclosures. The fact is, they paid for any repairs or issues during that time. Any landlords who claim to have no knowledge of the property are frauds.
Consult with your attorney for further steps in these kinds of situations. Buying a new home is exciting and it is easy to just assume all is well if it looks nice. However, this is not the case and an attorney can help you think more clearly throughout the process of buying a new home. Beware of getting caught up in the excitement and making snap decisions based only on emotion. With an attorney pointing out any red flags, you won’t end up full of regrets that you bought your home.
False Disclosures
If you end up having trouble with a structural problem, an appliance that does not work, or a broken part in the lighting system, the details may be in the seller’s disclosure. If the disclosure does not contain the details of the problem, you may have the right to sue for damages. Consult with your attorney on how to proceed.
What If the Seller Finds More Problems Before You Buy?
According to TexasRealEstate.com, sellers must disclose any known material information about the property’s condition—even if they don’t know about those conditions until after the completion of the seller’s disclosure notice. “If the information in the disclosure is no longer true, the seller may have a common-law duty to correct any misstatements or false impressions.”
We Can Help
If you are buying a new home, you need a clear head to assess the seller’s disclosure and any contracts you sign. With an experienced real estate attorney at Jarrett Law, you can know that you won’t miss the important details of this significant purchase. With our help, you can buy a home confident that you’re making a good decision founded on facts and knowledge. Contact us today and find out how we can help you.