Texas Seller Disclosure Requirements — What You Must Disclose
Texas law requires you to disclose all known material defects. Foundation issues, hail damage, past claims — hiding them doesn't protect you. Full disclosure does. Here's exactly what Bell County sellers need to know.
What do sellers have to disclose in Texas?
Under Texas Property Code Section 5.008, residential sellers must complete the TREC Seller's Disclosure Notice and disclose all known material defects to the buyer. This includes structural issues (foundation, roof, walls), environmental hazards (lead paint, mold, asbestos), mechanical systems (HVAC, plumbing, electrical), past insurance claims, flood zone status, and any legal encumbrances. Failure to disclose known defects exposes sellers to liability under the Texas Deceptive Trade Practices Act, with potential damages up to three times actual losses. In Bell County, the most common disclosure triggers are expansive clay soil/foundation movement, hail damage history, and past insurance claims.
- Legal basis: Texas Property Code Section 5.008 — mandatory for most residential sales
- Form: TREC Seller's Disclosure Notice — covers structural, environmental, mechanical, and legal issues
- Liability: Texas DTPA — up to 3x actual damages for willful omission
- Bell County #1 trigger: Expansive clay soil and foundation movement
- Key fact: Past insurance claims are discoverable via CLUE reports — hiding them doesn't work
- Exemptions: Limited — foreclosure, estate sales (partial), new construction (builders have separate obligations)
What does Texas law require you to disclose?
Texas Property Code Section 5.008 is straightforward: if you know about a material defect, you must tell the buyer. The TREC Seller's Disclosure Notice is the standardized form that accomplishes this. It's not optional for most residential sales, and "I forgot" is not a legal defense.
The form covers seven categories. You must answer each honestly. Marking "unknown" is acceptable when you genuinely don't know — but it is not a loophole for things you'd rather not mention.
Structural Components
- Foundation condition and repair history
- Roof age, condition, and past repairs
- Walls, ceilings, and floors
- Windows, doors, and framing
- Basement or crawlspace conditions
Environmental Hazards
- Lead-based paint (pre-1978 homes — federal mandate)
- Asbestos presence or removal
- Mold or water damage history
- Radon testing results
- Previous termite damage or treatment
Mechanical Systems
- HVAC age, condition, last service date
- Plumbing type and known issues (polybutylene pipes)
- Water heater age and condition
- Electrical system and panel age
- Appliance conditions and warranties
Legal & Financial
- Flood zone designation (FEMA maps)
- Easements, encroachments, or boundary disputes
- HOA violations or pending assessments
- Liens, back taxes, or judgments
- Zoning restrictions or pending changes
If a court determines you knowingly concealed a material defect, you face actual damages (repair costs + diminished value), mental anguish damages, and potentially treble damages — three times actual losses. Your real estate agent and brokerage may also be named. The DTPA statute of limitations runs from the date of discovery, not from closing — meaning a buyer can come back years later.
Exemptions exist but are narrow. Foreclosure sales, transfers by a fiduciary administering a decedent's estate, transfers between co-owners, and new-construction builders (who haven't occupied the home) may be partially exempt. But even exempt sellers cannot actively conceal known defects. The exemption removes the disclosure form requirement — not the obligation of honesty.
Common disclosure triggers in Bell County
Every market has its own set of issues that dominate the disclosure form. In Bell County, these are the items that show up most often — and the ones most likely to create problems if you skip them.
Common triggers based on Bell County transaction experience. Individual situations may vary — consult your agent and attorney for property-specific guidance.
What is the T-47 Residential Real Property Affidavit?
The T-47 is a notarized document where you, the seller, swear under oath whether any structural changes have been made to the property since the existing survey was drawn. It's separate from the Seller's Disclosure but equally important — and frequently misunderstood.
Why it matters: A new property survey costs $400–$800 in Bell County. If you can affirm that no changes have been made since the existing survey, the buyer and title company can rely on the old survey — saving time and money. But you must be truthful.
What counts as a "change": Fences added or moved, decks or patios built, pools or hot tubs installed, outbuildings or sheds added, room additions, driveway extensions, or any other structure that would alter the survey's depiction of improvements on the property. If any of these changes occurred, you must detail them on the T-47, and the buyer's title company will determine whether a new survey is needed.
The T-47 is a sworn, notarized affidavit. If you sign it stating no changes were made and the buyer later discovers a fence or outbuilding that post-dates the survey, you've made a false statement under oath. This is more serious than a disclosure omission — it's a potential perjury issue. When in doubt, list the change. A new survey is cheaper than a lawsuit.
Will disclosing problems kill my sale?
No. Hiding them will.
This is the question every seller asks, and the answer is consistently the opposite of what they expect. In Bell County, 93% of transactions include some form of seller concession — buyers are already anticipating imperfections. What buyers cannot tolerate is dishonesty. Here's why disclosure is a strategic advantage, not a liability:
It removes Option Period leverage. The 5–7 day Option Period gives buyers unrestricted termination rights. During this window, they conduct inspections. If the inspector finds something you didn't disclose, the buyer now has leverage to renegotiate aggressively — or walk. If you disclosed it upfront, the buyer already priced it into their offer. No surprise, no leverage, no drama.
It prevents late-stage deal death. The most expensive point for a deal to fall apart is after appraisal, when you've already been off-market for 3–4 weeks. An undisclosed issue discovered late puts you back to Day 1 with a stale listing and a disclosure history that now includes a failed contract.
It protects you legally for years after closing. The DTPA statute of limitations doesn't start at closing — it starts when the buyer discovers the defect. That could be six months, two years, or four years later. Full upfront disclosure is the single best legal protection a Texas seller has.
The Comprehensive Loss Underwriting Exchange (CLUE) database records every homeowner's insurance claim filed on a property for the past seven years. When the buyer applies for homeowner's insurance, their carrier pulls this report. If you filed a claim for water damage, hail, fire, or theft and didn't disclose it, the CLUE report will reveal the discrepancy. Not disclosing a claim doesn't hide it — it creates a paper trail that proves you were dishonest. Disclose every claim. Let the facts speak for themselves.
The math on a $276,900 home (Bell County median): A known $5,000 foundation repair disclosed upfront might reduce your offer by $3,000–$5,000. That same repair discovered during inspection — when the buyer is already suspicious about what else you hid — typically costs $8,000–$12,000 in renegotiated concessions, or kills the deal entirely. Transparency is cheaper.
My approach to seller disclosures
I tell every seller the same thing: the disclosure form is not your enemy. It's your shield.
I've been on both sides of this — as the listing agent helping sellers fill out the form, and as an investor buying properties where the disclosures were... creative. The deals that go sideways are never the ones with honest disclosures. They're the ones where a seller marked "unknown" on something they clearly knew about, and it showed up during inspection.
Here's what I walk my sellers through: We go room by room, system by system. Foundation? What do you know? Roof? When was it replaced or last inspected? HVAC? Any service calls? We document everything. If there's a past repair, we get the receipts and attach them. If there's an issue you haven't fixed, we price accordingly.
The correctly priced homes in Bell County sell in 32 days at full ask. That includes homes with disclosed issues. Buyers don't run from honesty. They run from uncertainty.
If you're selling in Temple, Belton, or anywhere in Bell County and you want someone to walk you through the disclosure form properly — call me at 254-718-4249. I'd rather spend 45 minutes going through it with you now than spend weeks cleaning up a deal that fell apart because of a missing checkbox.
How disclosures interact with the Option Period
The Texas Option Period is a 5–7 day window where the buyer has unrestricted right to terminate the contract. This is when inspections happen. Understanding how your disclosures interact with what the inspector finds is critical to keeping your deal together.
If you disclosed the issue and the inspector confirms it: The buyer already knew. They made their offer with that knowledge. There's nothing to renegotiate. The deal moves forward cleanly.
If the inspector finds something you didn't disclose but should have: The buyer now questions everything else on your disclosure form. "What else didn't they tell me?" This creates leverage for the buyer to request additional concessions, a deeper inspection scope, or to terminate outright during the Option Period with their earnest money refunded.
If the inspector finds something truly unknown to you: This is what "unknown" on the disclosure form is for. A genuine surprise discovered during inspection is normal — it happens in most transactions. The buyer negotiates a repair or credit, and the deal continues. The key word is "genuine." A 15-year-old foundation repair you "forgot" about is not a genuine surprise.
Texas seller disclosure — questions answered
The buyer can sue under the Texas Deceptive Trade Practices Act. Damages can include the cost of repairs, the difference in property value, mental anguish, and up to three times actual damages if the omission was intentional. Your agent and brokerage may also face liability. The statute of limitations runs from discovery of the defect, not from closing — meaning claims can surface years later. In Bell County, foundation issues and undisclosed hail damage are the most common sources of post-sale disputes.
Yes. Foundation movement is a material defect under Texas law. Past repairs, current cracking, sticking doors, uneven floors — all must be disclosed. Bell County's expansive clay soil makes this the #1 disclosure trigger locally. Hiding it is especially risky because any competent inspector will flag it during the Option Period, and the repair history is often documented in prior inspection reports and insurance claims.
Yes. Bell County is in a hail belt, and past hail damage to roofing, siding, or windows is a required disclosure even if repairs were made. Past insurance claims for hail damage are recorded in the CLUE database, which the buyer's insurer will pull. Not disclosing creates a paper trail that contradicts your disclosure form — exactly the kind of evidence that supports a DTPA claim.
A T-47 Residential Real Property Affidavit is a notarized document where you state whether any structural changes have been made since the existing survey was drawn. If no changes were made, the buyer can use the existing survey instead of ordering a new one — saving $400–$800. Changes include fences, decks, pools, outbuildings, room additions, or driveway extensions. Since it's a sworn affidavit, a false statement is more serious than a disclosure omission.
Yes, but they're narrow. Exemptions under Texas Property Code 5.008 include: court-ordered transfers (foreclosure), fiduciary administration of a decedent's estate, co-owner transfers, and new-construction builders who haven't occupied the home (builders have separate warranty obligations). Even exempt sellers cannot actively conceal known defects — the exemption waives the form requirement, not the obligation of honesty.
Yes. Texas buyers generally have four years from the date they discover (or should have discovered) the defect to file a DTPA claim. The clock starts at discovery, not at closing. Common post-closing claims in Bell County involve undisclosed foundation repairs, hidden water damage, and past insurance claims that surface when the buyer files their own claim. Full upfront disclosure is your best legal protection against post-closing litigation.
No — and the data supports this. In Bell County, 93% of transactions include seller concessions. Buyers expect imperfections. Disclosing a known $5,000 issue upfront typically costs $3,000–$5,000 in offer adjustment. That same issue discovered during inspection — when the buyer wonders what else was hidden — typically costs $8,000–$12,000 in renegotiated concessions or kills the deal entirely. Transparency is consistently cheaper than concealment.
The form covers: structural components (foundation, roof, walls, floors), water and sewer systems, HVAC, electrical, plumbing, appliances, environmental hazards (lead paint, asbestos, radon, mold), flood zone status, previous fire or storm damage, HOA information, legal issues (easements, encroachments, boundary disputes), and any other known material defects. Sellers must answer each section honestly. "Unknown" is acceptable when genuinely unknown — not as a strategy to avoid disclosure.
Ready to List with Confidence?
Taylor walks every seller through the disclosure form line by line. No surprises during the Option Period. No liability exposure after closing. Just a clean transaction built on transparency.