The Texas Seller's Disclosure Notice (sometimes called the Seller's Disclosure of Property Condition) is required by the Texas Property Code for most residential sales of 1-4 family dwellings. The seller — not the agent — completes this form, disclosing known defects and conditions affecting the property, including structural issues, plumbing, electrical, HVAC, environmental hazards, flooding history, and other material conditions.
An agent cannot complete this form on behalf of the seller, though the agent may explain what the form requires. If the seller is unable or unwilling to complete it, the agent must not fill it in themselves.
Exemptions from the Seller's Disclosure Notice requirement:
Important: Being exempt from the disclosure form does not exempt the seller from liability for fraud or willful concealment. An exempt seller who knowingly conceals a material defect can still be sued.
Agents have their own disclosure obligation independent of the seller's form. If an agent has actual knowledge of a material defect or condition that the seller has not disclosed, the agent must disclose it to the buyer — even when representing the seller. This is one of the few obligations agents owe to non-clients (along with honesty). An agent who conceals a known material defect faces both TREC disciplinary action and civil liability for fraud or misrepresentation.
Death on the property: Texas does not require disclosure of a death on the property unless the death resulted from a condition of the property itself (e.g., structural collapse). However, agents must answer buyer questions honestly. If a buyer asks directly whether anyone died on the property, lying is misrepresentation.
Sex offender registry: Agents must provide buyers with a notice directing them to the Department of Public Safety's sex offender registry. Agents do not have an independent duty to search the registry on behalf of a buyer.
Real-world example: A listing agent represents a seller who discloses on the seller's notice that the HVAC was replaced two years ago but says nothing about water intrusion. The agent has personally observed water staining on the basement walls during showings. The agent must disclose the observed water intrusion to buyers — this is a known material fact that the agent cannot conceal behind the seller's silence.
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Quiz Questions:
Q1. Which of the following transactions is EXEMPT from the Texas Seller's Disclosure Notice requirement?
A) A standard resale by an individual homeowner of a 3-bedroom single-family home B) A sale by a bank that acquired the property through foreclosure C) A for-sale-by-owner transaction with no real estate agents involved D) A sale of a duplex to a first-time buyer
Answer: B — Sales by lenders who acquired property through foreclosure are expressly exempt. The seller's disclosure exemptions are based on the nature of the transfer, not whether an agent is involved. FSBOs (C) still require the notice; standard resales (A) require it; duplexes sold by individual owners (D) require it because they are 1-4 family residential property.
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Q2. A seller's agent notices during a showing that the garage ceiling has fresh water stains. The seller's disclosure notice says "no known water intrusion." What should the agent do?
A) Rely on the seller's representation and say nothing to buyers about the water stains B) Ask the seller to update the disclosure notice before proceeding; if the seller refuses, consider withdrawing from the listing C) Disclose the observed water staining to buyers independently, because the agent has actual knowledge of a potential material defect D) Note the staining in private files but wait to see if any buyer specifically asks about the ceiling
Answer: C — The agent has actual knowledge of a potential material defect (water staining suggesting intrusion). The agent's independent disclosure duty requires them to disclose this to buyers regardless of what the seller's form says. The agent should also discuss this with the seller — but the agent cannot remain silent about what they personally observed.
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Q3. A buyer asks her buyer's agent: "Did anyone die in this house?" The agent knows a previous owner died of natural causes in the home three years ago. Texas law does not require disclosure of this death. How should the agent respond?
A) "No" — because Texas law does not require disclosure of non-property-related deaths B) "I cannot answer that question" — because Texas prohibits discussion of deaths on properties C) Honestly confirm that someone did die in the home, because lying in response to a direct question is misrepresentation D) Refer the buyer to public death records and decline to answer directly
Answer: C — While Texas law does not impose an affirmative duty to disclose deaths unrelated to property conditions, answering a direct buyer question with a lie is misrepresentation. The agent must be honest when directly asked. The correct response is an honest answer.
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Q4. Who is responsible for completing the Texas Seller's Disclosure Notice?
A) The listing agent, based on their knowledge of the property B) The seller, based on their personal knowledge of the property's condition C) Both the seller and the listing agent jointly D) The escrow officer at closing, after reviewing all inspection reports
Answer: B — The Seller's Disclosure Notice is a seller document. The seller completes it based on their own knowledge. An agent may explain what is required but cannot complete the form on the seller's behalf. Only the seller certifies what they know about the property's condition.
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Q5. A Texas homeowner sells her home directly to her adult son without using a real estate agent. Which statement about the Seller's Disclosure Notice is correct?
A) The disclosure notice is not required because no real estate agent is involved B) The disclosure notice is not required because this is a sale to a close relative C) The disclosure notice is required for all residential sales regardless of the family relationship D) The disclosure notice is only waived if both parties sign a written waiver prepared by an attorney
Answer: B — Texas Property Code exempts sales to a close relative of the seller from the Seller's Disclosure Notice requirement. The exemption is based on the relationship between the parties, not the absence of an agent. However, the seller is still not protected from liability for fraud or willful concealment.