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What Is a Seller Disclosure Form?

by | Jun 30, 2021 | Real Estate

Seller Disclosure

Whether you buy a property as-is or not, the seller must fill out the Seller Disclosure Form in Texas. The seller disclosure includes information about the property, but also any known defects or problems. Texas law requires sellers to disclose any known issues to you, the buyer. Even if the seller never lived in the home, they must let you know anything they know about the home. Let’s look at what the seller must specifically reveal to a potential homebuyer. 

Structural Defects

First off, the seller must disclose any structural defects of the home. If the seller is aware of any known defects/malfunctions in any of the items listed below, they must disclose. The seller may describe the defect or malfunction in detail in the disclosure statement. Defects could include things like a crack in the foundation or a leaking roof.

  • Interior and Exterior Walls
  • Ceilings and Floors
  • Doors and Windows
  • Roof
  • Foundation/ Basement/ Slab(s)
  • Walls/ Fences
  • Driveways and Sidewalks
  • Plumbing /Sewers/ Septic
  • Electrical Systems
  • Lighting Fixtures
  • Other Structural Components 

Property Features Disclosure

The seller must also let you know which features come with the property and whether they work. According to Texas Law, the seller must indicate the presence of these property features:

  • Range, Oven, Microwave
  • Dishwasher
  • Trash Compactor or Disposal
  • Washer/Dryer Hookups
  • Window Screens
  • Security System and Fire Detection Equipment
  • Intercom System
  • Rain Gutters
  • Smoke Detector, Hearing Impaired Smoke Detector, Carbon Monoxide Alarm
  • Emergency Escape Ladder(s)
  • TV Antenna/ Cable TV/ Satellite Dish
  • Ceiling/ Attic/ Exhaust Fan
  • Central A/C and Heating
  • Wall/Window Air Conditioning
  • Septic or Public Sewer System, Water Supply Type and Plumbing system
  • Patio/Decking, Fences, Outdoor Grill
  • Pool, Sauna, Spa, Hot Tub, Pool Equipment, Pool Heater
  • Automatic Lawn Sprinkler System
  • Wood burning or Mock Fireplace(s) & Chimney
  • Natural Gas Lines and Gas Fixtures
  • Liquid Propane Gas: LP Community or LP on Property
  • Garage (Attached, Not Attached, Carport and Garage Door Opener Types)
  • Gas or Electric Water Heater
  • Roof Type and Age

The seller must describe in detail if they are aware of any of the above property features that are:

  • not in working condition, 
  • that have known defects, or 
  • that require repair

In other words, if you move into a home and the seller did not disclose that your dishwasher does not work, you may have legal remedies available to you under Texas law.

Smoke Detector Requirements

In addition to the listed features above, smoke detectors are essential for a property. The seller must make sure the home has working smoke detectors installed per the smoke detector requirements of the Texas Health and Safety Code. One or two-family dwellings must have working smoke detectors installed under the building code requirements of that location. 

Dangerous Conditions

Sometimes, there are dangerous conditions that could hurt someone who isn’t aware of the problem. Texas law addresses this type of problem by requiring the seller to explain if they are aware of any dangerous conditions such as:

  • Active Termites (includes wood-destroying insects)
  • Termite or Wood Rot Damage Needing Repair
  • Previous Termite Damage or Treatment
  • Previous Structural or Roof Repair
  • Hazardous or Toxic Waste
  • Asbestos Components
  • Urea-formaldehyde Insulation
  • Radon Gas
  • Improper Drainage
  • Lead-Based Paint
  • Water Damage Not Due to a Flood Event
  • Aluminum Wiring
  • Previous Fires
  • Unplatted Easements
  • Landfill, Settling, Soil Movement, Fault Lines, Subsurface Structure or Pits
  • Single Blockable Main Drain in Pool/Hot Tub/Spa (danger of suction entrapment)
  • Previous Use of Premises for Manufacture of Methamphetamine

Seller Additional Disclosures

If the seller is aware of any item, equipment, or system in or on the property that needs repair, they must explain what they know. There may be additional sheets of paper or attachments detailing the problems. The seller must disclose and explain what they know if they have an awareness of any of the following conditions:

  • Present flood insurance coverage
  • Previous flooding due to a failure/ breach of a reservoir or any release of water from a reservoir
  • Previous water penetration into a structure on the property due to a natural flood event
  • Located wholly or partly in a 100-year floodplain, 500-year floodplain, or a floodway
  • Located wholly or partly in a flood pool or in a reservoir
  • Whether they have ever filed a claim for flood damage to the property with any insurance provider, including the National Flood Insurance Program (NFIP)
  • Whether they have ever received assistance from FEMA or the U.S. Small Business Administration (SBA) for flood damage to the property

Homes in high-risk flood zones with federal mortgages must by law have flood insurance. The Federal Emergency Management Agency (FEMA) encourages homeowners in any kinds of flood zones to purchase flood insurance for the structure and personal property within.

Legal Issues with the Property

There can be legal issues with any residential property you look at. Legal trouble can mean lawsuits in the future. It is crucial to pay attention to any disclosures made here. If the seller is aware of any of the following items, they must explain them in the seller’s disclosure:

  • Room additions, structural modifications, or other alterations or repairs made without necessary permits or not in compliance with building codes in effect at that time.
  • Homeowners’ Association or maintenance fees or assessments.
  • Any “common area” (such as pools, tennis courts, walkways, or other areas) co-owned in undivided interest with others.
  • Notices of violations of deed restrictions or governmental ordinances affecting the condition or use of the Property.
  • Lawsuits directly or indirectly affecting the Property.
  • A condition on the Property which materially affects the physical health or safety of an individual.
  • Rainwater harvesting system located on the property that is larger than 500 gallons and that uses a public water supply as an auxiliary water source.
  • A portion of the property is located in a groundwater conservation district or a subsidence district.

Certificates and Permits Required

If the property is located in a coastal area of the Gulf Intracoastal Waterway or within 1,000 feet of the mean high tide bordering the Gulf of Mexico, the property may be subject to the Open Beaches Act or the Dune Protection Act. 

These acts may require that you obtain a beachfront construction certificate or dune protection permit before you make repairs or improvements.  Contact the local government with ordinance authority over construction on public beaches for more information.

Watch Out for High Noise

If your property is located near a military installation, it may be affected by high noise or air installation compatible use zones or other operations.  Information relating to high noise and compatible use zones is available in the most recent Air Installation Compatible Use Zone Study 

We Can Help

If you are looking at homes and thinking about signing a purchase contract, it is vital to let your attorney check over the disclosures and contract before signing. As Texas real estate attorneys, we can protect your interests and future investment by ensuring that your contracts exceed legal standards for your financial protection. Buying a home is a significant investment, and we help you make the best decisions in your situation. Contact us today and find out how we can help.