Texas Seller Water Disclosure Guide
Do I Need a Texas Water-Rights Disclosure?
Under most current TREC residential contracts other than the resale condominium contract, you provide TREC Form 61-0 unless every statement in that contract’s water-disclosure exception is true. The new form is contract based, not a universal statute for every Texas sale. It is separate from the Seller’s Disclosure Notice required in many residential resales. A well, pond, lake, water tank, surface-water permit, outside well arrangement, or known severance, sale, or lease of groundwater rights can change the answer.
Quick Answer, current August 27, 2026: Start with the contract form and the property facts, not a generic yes-or-no rule. Under the current TREC One to Four Family Residential Contract, the seller’s water disclosure is the default unless all five statements in Paragraph 7I(3) are true. TREC’s resale condominium contract is excluded from this new paragraph. If the exception does not fit, complete TREC Form 61-0 accurately. Pull the deed, title commitment, exception documents, water-well and district records, and any water agreements. Ask a Texas attorney to interpret or draft any reservation, severance, exception, or separate conveyance of water rights.
Not sure whether the five-part exception fits?
Kaitlin can organize the property and transaction facts, coordinate the required forms, and identify questions that belong with title or a Texas attorney.
What changed for Texas water-rights disclosures in 2026?
TREC created the Seller’s Disclosure About Groundwater and Surface Water Rights, Form 61-0, and added Paragraph 7I to most of its current residential contract forms. Both the new disclosure and the current One to Four Family Residential Contract, Form 20-19, became effective July 1, 2026. TREC says the change came from the Sunset Advisory Commission’s direction to give prospective buyers relevant information about groundwater and surface-water rights associated with a property (TREC water-disclosure FAQ) (TREC, 2026).
This is an important distinction: TREC states that Form 61-0 is not required by a separate law in every transaction. It may be required by the TREC contract the parties use. The statutory Seller’s Disclosure Notice, by contrast, is required in many residential sales under Texas Property Code Section 5.008. A seller can be exempt from one document and still need the other (TREC’s August 2026 applicability FAQ) (TREC, 2026).
| Document | Current version | Why it exists | Main trigger |
|---|---|---|---|
| Seller’s Disclosure About Groundwater and Surface Water Rights | TREC 61-0, effective July 1, 2026 | Reports the seller’s knowledge about groundwater, wells, districts, surface-water rights, and water features | The current TREC contract requires it unless its stated exception applies |
| One to Four Family Residential Contract | TREC 20-19, effective July 1, 2026 | Creates the parties’ resale contract and contains the Paragraph 7I delivery choices | Parties select the applicable box and complete required blanks |
| Seller’s Disclosure Notice | TREC 55-1, effective May 28, 2026 | Reports material facts and physical condition required by Property Code Section 5.008 | Many previously occupied single-family residential sales, subject to statutory exceptions |
| Other water or district notices | Property specific | Addresses matters such as statutory districts, certificated service areas, or qualifying water-level fluctuation notices | The property’s location and the separate statute or contract notice |
Do not substitute one document for another. A complete Form 55-1 does not automatically answer Paragraph 7I. Form 61-0 does not replace a title review, well inspection, district record, deed, lease, or separate statutory notice. Call Kaitlin at 214.429.4907 or request a seller planning consultation before the listing file is assembled.
When is TREC Form 61-0 not required by the resale contract?
Paragraph 7I(3) of TREC Form 20-19 provides an exception only when all five listed statements are true. If one is not true, is not supportable from the seller’s knowledge, or cannot be completed accurately, do not force the property into the exception. The contract offers separate boxes for a buyer who has already received the disclosure, a buyer who will receive it after the effective date, or a transaction in which the five-part exception applies (TREC Form 20-19 page) (TREC, 2026).
| Paragraph 7I(3) statement | Seller’s practical check | Evidence to gather |
|---|---|---|
| Seller is not aware of a water well on the property, whether in use or not | Look beyond the current irrigation or household source | Survey, seller records, well logs, inspection history, visible equipment, prior listings |
| Seller is not aware of a pond, lake, or water tank on the property | Use the ordinary meaning because TREC says the terms are not specially defined | Survey, aerial images, site walk, improvement records, tank documentation |
| Seller is not aware of a TCEQ-administered certificate of adjudication, certified filing, or permit for surface-water rights associated with the property | Do not confuse access to a creek or lake with owning a regulated surface-water right | Deed and title records, TCEQ permit records, prior owner files, attorney review |
| Seller is not aware that groundwater rights have been severed, sold, or leased in whole or in part | Review old reservations and natural-resource documents, not just current use | Vesting deed, earlier deeds, title commitment, exception documents, leases |
| The property receives water only from the identified city, MUD or other special district, WSC, or private water company | Name the provider in the contract blank and confirm there is no separate well source | Recent bill, service letter, district map, provider confirmation, seller records |
Location inside a groundwater conservation district or subsidence district does not automatically defeat the exception. TREC’s current FAQ says a seller does not have to provide the form under the TREC contract when all five statements are true, even if the property lies inside such a district. The disclosure itself asks about a groundwater district only after the form is required (TREC’s August 2026 FAQ) (TREC, 2026).
A river or creek through the property is also not one of the listed exception facts in Paragraph 7I(3), while a pond, lake, or water tank on the property is. TREC has announced that its Broker-Lawyer Committee is reviewing questions about streams, the definition of a water tank, and the meaning of “receives.” Use the current signed form rather than predicting a future revision (TREC Broker-Lawyer Committee update) (TREC, 2026).
If a rain barrel, decorative pond, stock tank, shared feature, or water source creates uncertainty, record the facts and get direction before selecting the exception. Book a seller file review or call Kaitlin.
What does the Texas water-rights disclosure ask?
Form 61-0 is a two-page disclosure of the seller’s knowledge as of the date signed. Its exact disclaimer says the notice is not a substitute for any inspections or warranties the buyer may wish to obtain and is not a warranty of any kind by the seller or the seller’s agents. Its questions are organized around groundwater districts, water wells, groundwater rights, surface-water rights, and water features (TREC Form 61-0) (TREC, 2026).
Talk through the details at 214.429.4907
| Form section | What the seller reports | Good supporting records |
|---|---|---|
| Groundwater district | Whether any part of the property is inside a district, plus its name and website if known | District maps, appraisal records, district confirmation |
| Wells on the property | Known count, how many are in use, how many are capped, covered, plugged, or abandoned, and district registrations or permits | Well logs, permits, invoices, inspection and plugging records |
| Well ownership and use | Whether wells solely benefit the property or involve another owner, operator, beneficiary, agreement, or understanding | Recorded agreement, shared-well agreement, bills, maintenance records |
| Water from another property | Whether the property receives water from a well located elsewhere, excluding listed utility providers | Easement, license, agreement, provider or owner contact |
| Outside groundwater rights | Whether a well on the property relies on rights owned or leased from land outside the boundaries | Lease, conveyance, district authorization, attorney review |
| Severed, sold, or leased rights | Whether the seller is aware any groundwater rights have been severed, sold, or leased, with or without drilling or operating rights | Deeds, reservations, leases, title exceptions |
| Surface-water rights | Whether the seller owns an associated right, its permit, filing, or adjudication number, and any co-owner’s interest | TCEQ record, title documents, attorney review |
| Surface features | Whether a pond, lake, or water tank exists on the property, with or without water | Survey, site records, aerial image, inspection |
The form’s definitions matter. “Groundwater” means water percolating below the earth’s surface. “Surface water rights” means a TCEQ-administered permit, certified filing, or certificate of adjudication authorizing diversion, impoundment, or use. A creek in view is not, by itself, proof that the seller owns a regulated surface-water right. The form directs parties to a lawyer because the rights can be held by others and the law is complex.
Answer from actual knowledge and supporting documents. Do not guess a permit number, convert a memory into a legal conclusion, or mark “No” merely because no one currently uses a well. Call 214.429.4907 to build the record checklist, and send the team your seller timeline.
How is Form 61-0 different from the regular seller disclosure?
The two disclosures answer different questions and arise from different authorities. Texas Property Code Section 5.008 prescribes a written property-condition notice for many sales of residential real property with no more than one dwelling unit, subject to listed statutory exceptions. TREC Form 55-1 is the Commission’s current version of that notice. It covers the home’s systems, appliances, defects, flooding, insurance, roads, easements, tanks, conservation easements, and other condition information (TREC Seller’s Disclosure Notice page) (TREC, 2026).
Form 61-0 is narrower but deeper. It focuses on the legal and operational facts surrounding groundwater, wells, water districts, shared or outside water sources, severed or leased groundwater interests, regulated surface-water rights, and certain water features. TREC’s own FAQ says the statutory exceptions to Form 55-1 are not the same as the TREC contract’s exception to Form 61-0.
| Question | Seller’s Disclosure Notice, 55-1 | Water-rights disclosure, 61-0 |
|---|---|---|
| Authority | Texas Property Code Section 5.008 | Current TREC contract language |
| Main subject | Material facts and physical condition | Groundwater, wells, districts, surface-water rights, and water features |
| Exception analysis | Statutory categories and transaction facts | Five statements in the applicable contract must all be true |
| Substitutes for inspection or title review? | No | No |
| Can one replace the other? | No | No |
For the broader condition form, read What Do I Have to Disclose When Selling a House in Texas?. For your property-specific file, request Kaitlin’s pre-listing checklist.
Which records should a Texas seller collect?
A clean answer is easier when the seller assembles the evidence before an offer arrives. Start with the vesting deed and prior deed package, then add the title commitment and every readable exception document. If the property has or may have a well, request the available well log, district registration or permit, maintenance history, test results, pump and storage records, and any plugging or abandonment evidence.
The Texas Water Development Board maintains the Submitted Drillers Reports database for reports filed since February 2001 and makes clear that well locations may be unverified or inaccurate. TDLR regulates licensed water-well drillers and pump installers and participates with TWDB in the reporting system. These resources can help identify records, but a database search is not proof that no well or right exists. Older, unreported, shared, capped, or abandoned wells may require property-specific investigation (TWDB Submitted Drillers Reports) (Texas Water Development Board, 2026).
| Folder | Put these records inside | Question supported |
|---|---|---|
| Ownership and title | Current deed, earlier deeds, title commitment, Schedule B, exception documents, survey | Were any water rights reserved, severed, excepted, or burdened? |
| Water source | Recent bill, provider name, service letter, meter record, shared-source agreement | Does the property receive water only from the named provider? |
| Well | Driller’s report, district permit or registration, invoices, test and service records, plugging records | Does a known well exist, who operates it, and what is its status? |
| District | Map, district website, rules, tax record, correspondence | Is the property in a groundwater district and what rules apply? |
| Surface water | TCEQ permit, certified filing, certificate of adjudication, ownership schedule | Does the seller own an associated regulated surface-water right? |
| Physical features | Survey, aerial image, inspection, tank specifications, pond or lake records | Is a pond, lake, or water tank on the property? |
| Agreements | Shared-well, access, easement, lease, operating, maintenance, or beneficiary agreement | Do others own, operate, benefit from, or supply the water source? |
Mark each item as verified, unavailable, or needing professional review. Avoid treating “not found” as “does not exist.” If the form asks what the seller is aware of, preserve the basis for the answer without pretending the seller performed a title opinion.
Kaitlin’s role is to keep the transaction evidence organized and the deadlines visible. Call Kaitlin or schedule a pre-listing planning call.
How do deeds, title, leases, and reservations fit together?
Form 61-0 reports the seller’s knowledge. It does not create, reserve, release, or convey a water right. The current TREC resale contract treats a proposed reservation of water or another interest in Paragraph 2E and calls for an attached addendum. Paragraph 4C separately addresses an existing natural-resource lease, a defined category that includes a water lease. Paragraph 6 governs title commitment and exception documents (TREC One to Four Family Residential Contract, Form 20-19) (TREC, 2026).
That produces four different questions:
- What does the seller know? Form 61-0 captures the seller’s knowledge about listed water-rights and well facts.
- What is already in the chain of title? Deeds, reservations, easements, leases, and recorded instruments may show interests held by others.
- What does the title company identify? The commitment and exception documents describe matters affecting the proposed policy, subject to policy terms and professional interpretation.
- What do the parties want this sale to do? A new reservation, exception, release, or separate conveyance requires transaction-specific legal drafting and review.
Texas Water Code Section 36.002 recognizes groundwater ownership and rights in place, subject to the statute’s limits, district regulation, and common-law rules. That broad rule does not decide what this seller owns after prior conveyances or how a proposed reservation should be written (Texas Water Code Chapter 36) (Texas Water Code, 2026).
Do not insert a homemade water-rights clause into Special Provisions. Do not assume a mineral reservation includes or excludes groundwater. Do not promise a buyer the right to drill a well merely because a seller owns the surface. Ask Kaitlin to coordinate the title and attorney questions, or call 214.429.4907.
When should the water disclosure be delivered?
The cleanest practice is to settle the disclosure question before the listing accepts an offer. When Form 61-0 is required, complete it from the assembled records and deliver it early enough for the buyer to review. Paragraph 7I of TREC Form 20-19 provides three paths: the buyer already received it, the seller will deliver it within a stated number of days after the effective date, or the five-part exception applies.
If the contract requires later delivery and the buyer does not receive the form, Paragraph 7I(2) allows termination before closing. When the seller later delivers it, the paragraph gives the buyer a termination period of seven days after receipt or until closing, whichever occurs first. That is contract language, not a claim that every Texas transaction carries an identical statutory seven-day rule for Form 61-0 (current TREC resale contract) (TREC, 2026).
| Timing choice | What the file should show | Main risk to avoid |
|---|---|---|
| Buyer already received Form 61-0 | Complete signed form and delivery evidence | Assuming an MLS attachment was opened or received |
| Seller will deliver after the effective date | Completed contract blank, deadline calendar, delivery proof, buyer receipt | Missing the negotiated delivery period or buyer termination window |
| Five-part exception applies | All five statements reviewed and the water provider blank completed | Checking the box when one fact is false or uncertain |
If new facts surface, stop and update the transaction team. A newly found capped well, old water lease, shared-well agreement, title exception, or surface-water permit can change the disclosure analysis. The broker can coordinate forms and deadlines; a Texas attorney can advise on and interpret disputed property-rights or contract questions, while a court decides an unresolved legal dispute.
For a listing timeline that gets these files ready before the first offer, plan your sale with Kaitlin or call 214.429.4907.
What does this mean for a North Dallas seller?
Many suburban North Dallas homes receive water from a city, MUD, special district, water supply corporation, or private water company and have no known well, pond, lake, water tank, regulated surface-water right, or severed groundwater interest. Those facts may fit the contract exception, but the seller still has to confirm every part and identify the provider.
Other properties require a closer look. Larger parcels, acreage transitions, older rural improvements, shared sources, irrigation wells, stock tanks, ponds, or prior natural-resource conveyances can create records that do not appear in a standard city utility bill. Annexation and subdivision history can also leave old instruments in the title chain even when the current home looks suburban.
| Property signal | First check | Professional handoff |
|---|---|---|
| City utility bill and no visible water feature | Confirm all five exception statements and name the provider | Broker documents the contract selection |
| Well equipment, capped casing, pump house, or irrigation source | Locate well, district, service, and registration records | Well professional, district, title, and attorney as needed |
| Pond, lake, stock tank, or large water tank | Identify location, ownership, agreements, and current use | Surveyor, title, TCEQ, or attorney depending on the issue |
| Creek, river, or lake nearby | Separate physical adjacency from ownership of a regulated surface-water right | TCEQ and attorney for permit or title questions |
| Old reservation, resource lease, or shared-water agreement | Pull the full recorded document and title exception | Texas attorney interprets legal effect |
“North of 635 is a different world” applies here because local development history matters. A Frisco subdivision home, a Prosper acreage property, and a Celina parcel transitioning from rural use can present very different record sets. The goal is not to alarm a buyer. It is to prepare accurate documents so the buyer, title company, lender, inspectors, and attorneys can do their jobs.
Call Kaitlin at 214.429.4907 for a North Dallas seller file review, or choose a consultation time.
What is the clean seller preparation sequence?
- Confirm the contract family and current revision. Form 61-0 and the Paragraph 7I language are tied to current TREC contracts, so do not rely on an older PDF.
- Run the five-part exception test. Treat every statement as necessary. Complete the provider blank if using the exception.
- Walk the property and interview the seller. Ask about current, capped, covered, plugged, and abandoned wells; ponds; lakes; tanks; outside sources; and shared arrangements.
- Build the title folder. Pull deeds, reservations, leases, the title commitment, Schedule B, exception documents, and the survey.
- Build the water folder. Add bills, provider confirmation, district information, well reports, permits, registrations, maintenance records, agreements, and TCEQ identifiers.
- Complete Form 61-0 accurately when required. Attach additional pages where needed, and keep the signed version with delivery evidence.
- Keep separate notices separate. Review Form 55-1, water-district notice, certificated-service-area language, water-level fluctuation notice, and other property-specific requirements independently.
- Route legal questions early. Give counsel the complete document, the exact question, and the proposed transaction outcome.
- Calendar delivery and response rights. Do not let a form question become a preventable contract deadline problem.
- Update the file if facts change. A newly discovered well, agreement, permit, or title item needs immediate attention.
This is where a high-touch listing process protects the finish line. The seller should not be diagnosing water law alone, and the agent should not be drafting property-rights language. The team should create a complete record, use the current forms, and put the right question in front of the right professional.
Request Kaitlin’s selling plan or call 214.429.4907 before your home reaches the market.
Frequently asked questions
No. TREC says the water-rights disclosure is not independently required by another law in every transaction. Under most current TREC residential contracts, it is the default unless every statement in the contract’s stated exception is true. Condominium, builder, farm and ranch, or non-TREC forms require their own analysis.
No. Form 55-1 addresses property condition under Texas Property Code Section 5.008. Form 61-0 addresses groundwater, wells, districts, surface-water rights, and certain water features through current TREC contract language. A seller may need both, one, or neither.
The seller must not be aware of a well; pond, lake, or water tank; TCEQ-administered surface-water right; or severed, sold, or leased groundwater right. The property must also receive water only from the city, district, WSC, or private water company named in the contract. All five must be true.
No. TREC’s August 2026 FAQ says district location alone does not require the form when every Paragraph 7I(3) exception statement is true. If the form is required, it separately asks whether any part of the property is in a groundwater district.
Call the North Dallas team: 214.429.4907
Not under the current exception language by that fact alone. TREC says a river or creek is not listed in Paragraph 7I(3), while a pond, lake, or water tank on the property is. Other title, environmental, flood, or surface-water issues may still need separate review.
A known well still matters. Paragraph 7I(3) refers to a water well whether in use or not, and Form 61-0 asks how many known wells are not in use and have been capped, covered, plugged, or abandoned. Gather the available well and plugging records.
No. A broker can use current promulgated forms and coordinate documents, but TREC forms warn against agents practicing law. A proposed reservation, exception, release, or separate conveyance of water rights belongs with a Texas attorney before the parties sign a binding contract.
Preferably before the buyer signs, so the record and review are clear. If the current TREC resale contract requires later delivery, Paragraph 7I(2) sets the negotiated delivery period and gives the buyer stated termination rights if the form is missing or delivered after the effective date.
Prepare the water and title facts before the offer.
Kaitlin Lovern can organize the seller file, coordinate current TREC forms, and keep title, inspection, and attorney questions moving in the right lane.
Sources
- Texas Real Estate Commission: FAQs, Seller’s Disclosure About Groundwater and Surface Water Rights, August 14, 2026
- Texas Real Estate Commission: Seller’s Disclosure About Groundwater and Surface Water Rights, Form 61-0, effective July 1, 2026
- Texas Real Estate Commission: TREC Form 61-0 PDF
- Texas Real Estate Commission: One to Four Family Residential Contract, Form 20-19, effective July 1, 2026
- Texas Real Estate Commission: TREC Form 20-19 PDF
- Texas Real Estate Commission: Seller’s Disclosure Notice, Form 55-1, effective May 28, 2026
- Texas Property Code Chapter 5, including Section 5.008
- Texas Water Code Chapter 36, including Section 36.002
- Texas Real Estate Commission: July 2026 Broker-Lawyer Committee update
- Texas Department of Licensing and Regulation: Water Well Drillers and Pump Installers
- Texas Water Development Board: Groundwater Data
About Kaitlin Lovern
Kaitlin Lovern is an 8-time D Magazine Best Realtor with $255M+ in career sales volume. She helps North Dallas sellers prepare property records, disclosures, pricing, and transaction timelines before the home reaches the market. Kaitlin is a Texas real estate license holder, license #0634293, with Real Brokerage LLC.
Meet Kaitlin and her team or call 214.429.4907.
