Texas Seller Disclosure Guide
What Do I Have to Disclose When Selling a House in Texas?
Texas sellers must disclose known property conditions in writing before the buyer signs. The current TREC Form 55-1 covers the property’s systems, defects, flood history, and legal status, while separate notices may apply for MUDs, lead-based paint, and other conditions.
The protective answer: Texas sellers must disclose known property conditions in writing before the buyer signs. This guide explains Form 55-1, separate notices, timing, exemptions, and the mistakes that create avoidable disputes.
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What Is the Texas Seller’s Disclosure Notice?
When you sell a residential home in Texas, the law requires you to hand the buyer a written document explaining what you know about the property’s condition. That document is the Seller’s Disclosure Notice, known by its official form number: TREC Form 55-1. It is published and promulgated by the Texas Real Estate Commission under Texas Property Code Section 5.008.
The purpose of Form 55-1 is direct: buyers deserve to know what sellers know. If the roof has leaked, if the HVAC unit is aging, if the foundation has moved, if the neighborhood floods in heavy rain years, if there is a pending HOA special assessment, the seller is expected to say so in writing before the buyer signs anything. The form is not a warranty. It does not certify that the home is in good condition. It captures your knowledge of it as of the date you sign it.
The Standard Is What You Know
Texas law requires you to disclose what you actually know, not what a home inspector might find. You are not required to investigate the property on the buyer’s behalf. If you genuinely did not know about a defect, you cannot be held liable for not disclosing it. The operative word in every question on Form 55-1 is “aware.”
Every residential seller working with a Texas REALTOR completes Form 55-1 as a standard part of the listing process. Kaitlin reviews the form with every seller before the home goes on the market. That timing is not required by law, but it reflects how she approaches her job: catching an incomplete or incorrect answer before you are under contract is a far better position than explaining it after an offer is accepted. Call 214.429.4907 to schedule your pre-listing consultation.
The disclosure requirement under Section 5.008 applies to residential real property of one to four units. Commercial property, raw land, and farm and ranch transactions fall outside Section 5.008’s scope, though they carry their own disclosure considerations under separate TREC-approved contract addenda and statutory provisions.
What Exactly Must You Disclose on Form 55-1?
TREC Form 55-1 is organized into sections covering the property’s structural components, mechanical systems, environmental conditions, and legal status. Each question asks whether you are aware of any defects, malfunctions, damages, or specific conditions. Most questions offer three answer choices: Yes, No, or Unknown. For any Yes answer, the form provides space to explain.
“Unknown” Is Not a Blanket Defense
Selecting Unknown is appropriate when you genuinely have no knowledge of a condition. Selecting Unknown to avoid an uncomfortable Yes when you do have knowledge is misrepresentation. If a buyer or their attorney later demonstrates that you had actual knowledge, the Unknown answer becomes evidence against you rather than protection for you.
One of the most common errors Kaitlin sees is sellers leaving the flood section blank because they have never personally experienced flooding, without realizing their home sits in a FEMA Special Flood Hazard Area. Before completing Section A, pull your property’s flood zone status from the FEMA Flood Map Service Center. If your home is in Zone AE, Zone X-shaded, or any other designated floodplain, mark it on the form. Call 214.429.4907 and Kaitlin’s team will help you identify this before the listing goes live.
Repairs made without permits are another consistent source of disputes. If you enclosed a garage, added a bedroom, or extended a deck without pulling a permit from your city, Section J and the general defect line at the end of Form 55-1 are the correct places to note it. Unpermitted work is not an automatic deal-killer, but how it is disclosed and handled separates a smooth transaction from a renegotiation two weeks before closing. (Texas Real Estate Commission, TREC Form 55-1)
Which Properties Are Exempt from Disclosure in Texas?
Texas Property Code Section 5.008(e) lists specific categories of transactions that are exempt from the Seller’s Disclosure Notice requirement. These exemptions are narrowly written. If you are unsure whether your situation qualifies, assume you must disclose. A complete, honest disclosure given when it was not technically required has never resulted in a lawsuit. Failing to disclose when it was required has resulted in many.
1. New Construction by the Builder
A builder selling a home they constructed is exempt. This applies only to the original builder-to-buyer sale. If you buy a new home and later resell it, you are a resale seller subject to full disclosure requirements. This distinction matters in Prosper and Celina, where production builders are actively selling. Once a buyer takes title, the exemption disappears at resale.
2. Foreclosure or Trustee Sale
A lender or trustee selling a property acquired through foreclosure is exempt. These are inherently as-is transactions; the bank or servicer has no personal knowledge of the property’s lived condition the way an owner-occupant would.
3. Estate or Fiduciary Sale
A sale by an executor, administrator, trustee, or guardian who has no personal knowledge of the property may qualify for the exemption. However, if the executor or trustee lived in the home, the exemption is not automatic. Your probate attorney and REALTOR should both weigh in before you skip Form 55-1. Call Kaitlin at 214.429.4907; she handles these regularly through North Dallas probate referral channels.
4. Court-Ordered Sale
A sale ordered by a court, including divorce decrees, partition suits, and bankruptcy proceedings, may be exempt. In practice, the mediating attorney or bankruptcy trustee typically handles the compliance determination. Confirm with your legal counsel before skipping the form.
5. Relocation Company
A relocation company selling a home it acquired as part of a corporate relocation program is exempt because the company itself has no personal knowledge of the home’s condition. The original homeowner typically completes a disclosure at the earlier transfer to the relocation company.
6. Sale Between Co-Owners
A transfer between co-owners, such as one sibling buying out another’s share of an inherited home, is exempt. Both parties are presumed to share knowledge of the property.
7. Family Transfers and Gifts
Transfers to a spouse or to a family member within the second degree of consanguinity (parents, children, siblings, grandparents, grandchildren) are exempt, as are transfers that are outright gifts with no monetary consideration paid.
When in Doubt, Disclose
The exemptions are narrow and fact-specific. If you are unsure whether yours applies, provide Form 55-1 anyway. No buyer has ever sued a seller for disclosing too much. The lawsuits come from the other direction. Call Kaitlin at 214.429.4907 before assuming an exemption applies. (Texas Property Code Section 5.008(e))
What Special Disclosures Go Beyond Form 55-1?
TREC Form 55-1 is the core document, but it is not the only disclosure that may apply to your sale. Depending on when your home was built, where it sits geographically, and how it is governed, one or more of the following may be required in addition to Form 55-1.
Lead-Based Paint Disclosure (Pre-1978 Homes)
If your home was built before 1978, federal law requires you to give the buyer a signed lead-based paint disclosure form and an EPA pamphlet titled “Protect Your Family from Lead in Your Home” before the contract is executed. (42 U.S.C. Section 4852d; 24 CFR Part 35) The buyer then has a 10-day window to conduct a lead-based paint inspection or risk assessment, which they can waive in writing. This is a federal requirement, entirely separate from Texas law, and the civil penalty for non-compliance reaches $22,000 per violation under EPA enforcement. TREC has a standard Lead-Based Paint Addendum that your agent attaches to any pre-1978 sale contract. Call 214.429.4907 if you are unsure of your home’s build year.
MUD (Municipal Utility District) Notice
A large share of newer North Dallas development, covering portions of Allen, McKinney, Frisco, Prosper, and Celina, sits inside the boundaries of one or more Municipal Utility Districts. MUDs are special-purpose governmental entities that issue bonds to finance infrastructure (water, wastewater, drainage) and then recover those bond costs through a supplemental tax on property owners. Buyers inside a MUD pay a MUD tax on top of city, county, school, and other rates, and that combined burden can materially affect their mortgage qualification. Texas Water Code Section 49.452 requires the seller to deliver a written MUD Notice including the district’s name, current tax rate, outstanding bond debt, and projected taxes per $100 of assessed value. Texas Water Code §49.452(f) entitles a buyer to terminate when the required notice was not provided before the binding contract. The statute does not state a fixed three-day or seven-day window; a buyer who receives the notice by closing and elects to close waives that termination right. Kaitlin’s team identifies MUD status before the listing goes live. Call 214.429.4907 to understand how MUD status affects your buyer’s full carrying cost.
HOA Resale Certificate (Texas Property Code Chapter 207)
If your home is subject to a homeowner’s association, Texas Property Code Chapter 207 requires you to make specific HOA information available to the buyer. That document is called the resale certificate, and it must be ordered directly from the HOA rather than drafted by you or your agent. The certificate includes current and pending assessments, any delinquent amounts on the property, pending or active litigation involving the association, and copies of the governing documents. The resale certificate typically costs $150 to $400, is generally a seller expense, and in planned communities like Stonebriar, Starwood, or The Trails of Frisco can run dozens of pages. Buyers typically have 3 days after receiving it to withdraw from the contract. Kaitlin’s transaction coordinator Kim orders the resale certificate within the first 48 hours of a signed contract so the buyer’s review clock does not delay closing. Call 214.429.4907 to get the process started before your listing.
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Does Selling As-Is Get You Out of Disclosures?
No. This is one of the most persistent misconceptions Kaitlin encounters. Sellers believe that listing as-is, or including an as-is clause in the contract, means they do not need to disclose known problems. That is not how Texas law works, and it has never been how Texas law worked.
An as-is clause in the TREC One to Four Family Residential Contract (Paragraph 7D(2)) tells the buyer that you are not agreeing in advance to repair anything the inspector finds. It is a statement about repair obligations, not about disclosure obligations. Texas Property Code Section 5.008 applies regardless of as-is contract language. The Seller’s Disclosure Notice must still be completed and delivered, and all of the supplemental disclosures, lead paint, MUD, HOA, flood, still apply.
Selling as-is is a legitimate strategy that Kaitlin advises on regularly, particularly when the property has deferred maintenance, a complicated repair history, or needs to be priced for the condition it is actually in. As-is pricing and presentation is its own skill set. What it is not is a legal shield against what you are required to disclose. If anything, as-is sales call for a more thorough disclosure, not a thinner one. A buyer who paid an as-is price and then discovers a condition you knowingly concealed is more motivated to pursue legal remedies, not less, because they arguably overpaid for the risk they accepted. Call Kaitlin at 214.429.4907 to build an as-is strategy that protects you from the first conversation through closing. (Texas Property Code Section 5.008; TREC One to Four Family Residential Contract, Paragraph 7D)
When Must You Deliver the Seller’s Disclosure in Texas?
Texas Property Code Section 5.008 gives sellers flexibility in when they deliver the Seller’s Disclosure Notice, but that flexibility has a built-in buyer protection mechanism you need to understand before relying on it.
Before the Buyer Signs (The Standard)
The cleanest approach is to have the disclosure completed before the listing goes live, at the latest before the buyer signs the purchase contract. The buyer receives it as part of the offer process and signs a written acknowledgment. No rescission right is triggered. This is Kaitlin’s standard practice on every listing.
After Signing: Buyer Has 7 Days to Withdraw
If the disclosure is delivered after the buyer signs the contract, Section 5.008(d) gives the buyer 7 days after receipt to withdraw from the contract and receive their earnest money back, for any reason. This is the law’s protection against sellers who delay delivery to lock in a buyer before they have full information. The 7-day window is absolute; it does not require the buyer to show they would not have signed if they had seen the disclosure earlier.
Amended Disclosure After New Information
If you discover a material defect after delivering the initial disclosure, you are obligated to amend and re-deliver the form. The buyer’s 7-day rescission window resets from the amended delivery date. This happens: if a pipe bursts during the option period, the plumbing section of Form 55-1 must be updated. Call Kaitlin at 214.429.4907 immediately if this occurs, because timing governs whether you are still within your right to manage the situation.
Get the Signed Acknowledgment
Once the buyer signs the disclosure acknowledgment, your obligation under Section 5.008 is satisfied for that document and that delivery. Kaitlin’s team tracks this in dotloop. The signed acknowledgment is your primary legal protection in the event of any future dispute about whether the buyer had notice.
North Dallas Practice: Disclose Before the Offer
In a North Dallas market where buyers in Frisco, McKinney, and Prosper often submit offers within 24 to 48 hours of a listing going live, having your disclosure ready before the first showing is a preparation signal buyers and their agents notice. It also removes a post-offer discovery that could reopen negotiation. Kaitlin completes this step as part of her pre-listing checklist. The disclosure is attached to the listing file before the sign goes in the yard. Call 214.429.4907 to get started. (Texas Property Code Section 5.008(d))
What Happens If You Fail to Disclose in Texas?
The consequences of a non-disclosure in Texas depend on whether the omission was innocent, accidental, or deliberate, and on how quickly after closing the buyer discovers it. The range runs from a buyer demand letter to a full DTPA lawsuit with treble damages and attorney’s fees.
The statute of limitations for a DTPA claim in Texas is 2 years from discovery of the misrepresentation, with an outside cap of 4 years from the date of the act that caused the harm. (Texas Business and Commerce Code Section 17.565) Buyers have a substantial post-closing window to bring claims. The seller’s protection is a complete, signed disclosure that accurately reflects what they knew when they signed it.
Disclose to Protect, Not to Expose
One of the things Kaitlin is direct about with every seller: the disclosure form is your shield, not your liability. A signed, complete, honest disclosure is the best legal protection a seller can hold. When a buyer discovers a problem post-closing, the first thing their attorney checks is what the disclosure said. If the answer is “the seller marked Yes and explained it in writing,” the case is typically over before it starts.
If the answer is “the seller marked No for a problem they demonstrably knew about,” that is the case. This is why Kaitlin sits with every seller and reviews the form section by section before the listing goes live. Not because sellers are dishonest, but because memory is imperfect and the form needs to reflect your actual knowledge at signing. Call 214.429.4907 to schedule that review before your listing date. (Texas Business and Commerce Code Section 17.565)
Related in This Series
Frequently Asked Questions
Do I have to disclose if someone died in my house in Texas?
No. Texas Property Code Section 5.008(e) explicitly exempts sellers from disclosing that a death occurred on the property, whether by natural causes, suicide, or accident. If a buyer asks you directly, answer truthfully. Non-disclosure is protected; active misrepresentation is not. Call Kaitlin at 214.429.4907 if you want to talk through a sensitive situation before listing.
Does selling as-is in Texas get me out of disclosures?
No. An as-is clause does not exempt you from delivering TREC Form 55-1. Texas Property Code Section 5.008 and TREC contract Paragraph 7D require the disclosure regardless of as-is sale terms. What as-is changes is the seller’s repair obligation after inspection, not what you must tell the buyer upfront. Call 214.429.4907 to discuss your as-is sale strategy with Kaitlin.
What happens if I forget to disclose something in Texas?
Consequences depend on whether the omission was innocent or knowing. An honest mistake typically creates no liability because you must disclose what you know, not what you don’t. A deliberate omission or misrepresentation can expose you to a rescinded contract, buyer damages, and claims under the Texas Deceptive Trade Practices Act (Texas Business and Commerce Code Chapter 17), which allows up to three times actual damages for knowing violations. Call Kaitlin at 214.429.4907 early. Catching a gap before the contract is signed is far better than dealing with it after closing.
Is mold required to be disclosed when selling a house in Texas?
Yes. TREC Form 55-1 Section A includes a direct question about known mold and moisture intrusion. If you are aware of a current or past mold condition, you must disclose it. Remediating the problem before listing does not eliminate the disclosure obligation. You must still note that it existed and was repaired. Call 214.429.4907 for guidance on framing a remediated issue in a way that does not needlessly concern buyers.
Do I need to disclose if my house is in a flood zone in Texas?
Yes, in two ways. TREC Form 55-1 Section A asks whether the property is in a FEMA 100-year floodplain. If your home has ever flooded, you must disclose that under the known-defects standard of Texas Property Code Section 5.008. Separately, if your home is in a Municipal Utility District, additional flood-related notices may apply under Texas Water Code Section 49.452. Call 214.429.4907 to understand how flood history affects your North Dallas sale.
When does the seller’s disclosure have to be given to the buyer in Texas?
The seller must deliver TREC Form 55-1 before the buyer signs the purchase contract. If it is delivered after contract execution, the buyer has 7 days after receipt to withdraw and recover their earnest money, per Texas Property Code Section 5.008(d). Kaitlin prepares the disclosure before the listing goes live so it is ready the moment an offer comes in. Call 214.429.4907 to schedule your pre-listing consultation.
Does a new home builder have to provide a seller’s disclosure in Texas?
No. A builder selling a newly constructed home is exempt from the Texas Seller’s Disclosure Notice under Texas Property Code Section 5.008(e). This applies only to the original builder-to-buyer sale. If you buy that home and later resell it, you are a resale seller and must provide the full disclosure. This distinction matters in Prosper and Celina, where production builders are actively selling at reduced prices. Once you take title, the exemption disappears. Call 214.429.4907 if you are unsure whether your situation qualifies for an exemption.
Does my HOA have a separate disclosure requirement when selling in Texas?
Yes. Texas Property Code Chapter 207 requires sellers of HOA properties to provide the buyer with a resale certificate that includes current assessments, pending litigation, and governing documents. The certificate is ordered directly from the HOA, typically costs $150 to $400, and must be ordered before or shortly after contract execution. Kaitlin’s transaction coordinator Kim orders this within 48 hours of a signed contract so the buyer’s review period does not delay closing. Call 214.429.4907 to start the process before your listing goes live.
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About the author
Kaitlin Lovern
Founder & Lead Realtor · Real Brokerage LLC · license #0634293
Ranked in the top 1% of REALTORS® nationwide and RealTrends Verified, Kaitlin Lovern helps North Dallas sellers prepare property facts, pricing, and required notices before the home reaches the market. Meet Kaitlin and her team.
