Texas seller disclosure requirements are governed by Texas Property Code Section 5.008, which mandates that sellers of residential property (1-4 units) deliver a written Seller's Disclosure Notice to the buyer before closing. The TREC Seller's Disclosure Notice covers structural condition, environmental hazards, flooding history, and material facts about the property. As of January 2025, the form includes a new mold remediation disclosure. Certain transfers are exempt, but the exemptions are narrow. This guide covers what Texas sellers must disclose, the exemptions, the new mold requirement, the delivery timeline, and how a TC tracks disclosure compliance on TREC files.
Key takeaways
- Texas Property Code Section 5.008 requires a Seller's Disclosure Notice on all 1-4 unit residential sales, with limited exemptions.
- The TREC Seller's Disclosure Notice covers structural, environmental, flooding, and property condition items.
- As of January 2025, sellers must disclose mold remediation within the past 5 years (Paragraph 6E(11)).
- Exemptions include foreclosures, court-ordered sales, and transfers between family members or co-owners.
- Late or incomplete disclosures can reopen the buyer's termination window and extend contingency timelines.
What does Texas law require sellers to disclose?
The Texas Real Estate Commission (TREC) publishes the Seller's Disclosure Notice, the standard form used on residential transactions statewide. Texas is one of the few states where the regulator (not the realtor association) mandates and publishes the disclosure form. The disclosure obligation comes from Texas Property Code Section 5.008, which requires the seller to disclose "all known conditions that materially affect the physical condition of the property."
The disclosure covers the following categories:
- Structural. Foundation, walls, roof, doors, windows, fencing, driveways, sidewalks, and any known settling, cracking, or movement.
- Systems. Plumbing, electrical, HVAC (heating, ventilation, air conditioning), water heater, and appliances included in the sale.
- Environmental. Previous flooding, presence of hazardous materials (lead paint, asbestos, radon), termite damage or treatment, and proximity to environmental hazards.
- Water and sewer. Type of water supply (city, well, co-op), sewer connection (city, septic), and known issues with water quality or drainage.
- Property boundaries and restrictions. Easements, encroachments, HOA membership, deed restrictions, and zoning issues.
- Flooding and insurance. Whether the property is in a flood zone, has flooded previously, or requires flood insurance.
- Mold remediation (new, January 2025). Whether mold remediation occurred on the property within the past 5 years.
The Texas Association of Realtors provides member education on completing the disclosure form. The National Association of Realtors maintains research on state-by-state disclosure requirements, which confirms Texas's position as one of the more detailed mandatory-disclosure states.
What is the new mold remediation disclosure?
The January 2025 TREC form update added Paragraph 6E(11) to the Seller's Disclosure Notice. Sellers must now answer whether mold remediation occurred on the property within the past 5 years. This is a binary yes/no question with space for explanation if the answer is yes.
The disclosure is retrospective. It doesn't require the seller to inspect for current mold. It requires the seller to disclose known remediation that already occurred. If the seller hired a mold remediation company within the past 5 years, that must be disclosed regardless of whether the issue was fully resolved.
On Texas files we see, the mold disclosure is where sellers most often leave the form incomplete. Some sellers don't remember remediation details. Others assume that because the remediation was successful, there's nothing to disclose. The TC's role is to flag any blank or incomplete response on the mold section and send it back to the listing agent for completion before the disclosure is delivered to the buyer.
What transfers are exempt from Texas seller disclosure?
Texas Property Code Section 5.008(e) lists specific exemptions. The exemption applies to the disclosure form requirement, not to the general duty to avoid fraud. A seller who is exempt from delivering the Seller's Disclosure Notice can still be held liable for intentional misrepresentation.
Exempt transfers include:
- Foreclosure sales. Transfers pursuant to court order, including foreclosure, bankruptcy trustee sales, and probate.
- Fiduciary transfers. Sales by executors, administrators, guardians, or trustees acting in a fiduciary capacity.
- Co-owner and family transfers. Transfers between co-owners, between spouses (including divorce-related transfers), or between family members.
- Government transfers. Sales by government entities.
- New construction. Transfers where the seller is the builder and provides a new-home warranty under Texas Property Code Chapter 430.
| Transfer type | Disclosure form required? | Fraud liability still applies? |
|---|---|---|
| Standard resale (1-4 units) | Yes | Yes |
| Foreclosure / court-ordered | No | Yes |
| Bankruptcy trustee sale | No | Yes |
| Transfer between co-owners | No | Yes |
| Transfer between spouses | No | Yes |
| New construction (with warranty) | No | Yes |
| Estate / fiduciary transfer | No | Yes |
| Government entity sale | No | Yes |
The exemption for new construction is narrower than it appears. If the builder is also the seller of a previously occupied property, the exemption doesn't apply. Only first-sale-from-builder transfers with a qualifying warranty are exempt.
When does the seller's disclosure have to be delivered?
Texas doesn't specify an exact day-count deadline the way it does for earnest money (3 days) or the option period. Instead, the law requires delivery "before the buyer is obligated to perform under the contract." In practice, this means the Seller's Disclosure Notice should be delivered as early as possible, ideally within the option period.
The timing matters because late delivery can reopen the buyer's termination window. If the seller delivers the disclosure after the option period, or delivers an amendment to a previously completed disclosure, the buyer may receive additional days to review and terminate. The specific number of days depends on the contract language and the nature of the amendment.
In our TC work on Texas files, we treat the Seller's Disclosure Notice as a day-one item. We verify it's complete and delivered at contract intake. If it's missing or incomplete at intake, we escalate to the listing agent immediately rather than waiting for a deadline to approach.
What happens if a Texas seller fails to disclose?
Non-disclosure of known material defects exposes the seller to liability under Texas Property Code Section 5.008 and under common-law fraud principles. Buyers who discover undisclosed defects can seek rescission (unwinding the sale) or sue for damages (the cost to repair the defect, diminished property value, or other losses).
Texas courts have consistently held sellers accountable for intentional non-disclosure. The key legal question is whether the seller "knew" about the condition. The disclosure form asks about known conditions, not conditions the seller should have investigated. But courts have also found that willful ignorance (deliberately avoiding knowledge of an obvious problem) doesn't protect the seller.
Three common non-disclosure patterns on Texas files:
- Foundation issues. Texas's clay soils cause widespread foundation movement. Sellers who've had foundation work done sometimes fail to disclose it, especially if they consider the repair "complete."
- Flooding history. Properties that flooded during Hurricane Harvey (2017) or other events sometimes come with incomplete flooding disclosures, particularly if the seller purchased after the flood event and relies on secondhand information.
- Mold remediation. The new January 2025 requirement is already surfacing incomplete responses, particularly on properties where the seller hired a general contractor (not a mold specialist) to address water damage.
What other disclosures does a Texas TC track?
The Seller's Disclosure Notice is the largest single disclosure document, but Texas files carry several additional disclosure requirements.
Lead-based paint disclosure. Federal requirement on properties built before 1978. Same form and process as every state. The seller must provide the EPA pamphlet and disclose known lead-based paint or hazards.
Property Owners Association (POA) disclosure. If the property is subject to mandatory HOA membership, the seller must provide a POA resale certificate, bylaws, and related documents. The TREC contract includes the Addendum for Property Subject to Mandatory Membership in a Property Owners Association. Delivery timing varies but is typically 5-10 days.
Natural resource disclosures. In areas with oil, gas, or mineral rights, the seller must disclose existing leases or reservations. The Addendum for Reservation of Oil, Gas, and Other Minerals is a Texas-specific rider common in rural and Hill Country transactions. The January 2025 form update also added geothermal energy lease language (Paragraph 4.C).
Survey and boundary disclosures. The TREC form includes provisions for survey delivery. The January 2025 update added the T-47.1 Declaration option (Paragraph 6C), allowing sellers to waive the survey requirement via a statutory declaration under certain conditions.
| Disclosure | Required on | Delivery timing | TC tracking priority |
|---|---|---|---|
| Seller's Disclosure Notice | All 1-4 unit resales (with exemptions) | Before buyer is obligated; ideally at or before option period | Day-one verification |
| Lead-based paint | Pre-1978 properties | At or before contract execution | Intake verification |
| POA resale certificate | HOA-governed properties | 5-10 days (per contract) | Ordered at contract signing |
| Mineral rights addendum | Properties with oil/gas/mineral leases | At contract execution | Intake verification |
| Mold remediation (new) | All properties where remediation occurred in past 5 years | Part of Seller's Disclosure Notice | Day-one verification |
How does the Seller's Disclosure Notice fit the TREC timeline?
The disclosure sits inside the broader TREC contract timeline that includes the 3-day earnest money delivery, the option period (7-10 days), the financing contingency (21 days), and closing (typically 21-30 days). For the full TREC deadline framework, see TREC forms and the Texas TC's role.
The option period is where the Seller's Disclosure Notice matters most. During the option period, the buyer has an unrestricted right to terminate (in exchange for the non-refundable option fee). A complete, accurate disclosure delivered before or during the option period gives the buyer the information they need to make an informed decision about whether to proceed. A late or incomplete disclosure delivered after the option period can reopen the buyer's termination window and disrupt the closing timeline.
For how earnest money and the option fee interact with the disclosure timeline, see the Texas earnest money guide.
How does Quill track Texas seller disclosures?
Quill treats the Seller's Disclosure Notice as a day-one intake item on every Texas file. At contract intake, Quill verifies that the disclosure is complete (all sections answered, including the new mold remediation disclosure), delivered to the buyer, and acknowledged. If the disclosure is missing or incomplete at intake, Quill escalates to the listing agent immediately.
Quill also tracks POA resale certificate requests (ordered at contract signing), lead-based paint disclosures (verified at intake on pre-1978 properties), and mineral rights addenda where applicable. If the seller delivers an amended disclosure after the initial delivery, Quill tracks the buyer's updated review window and adjusts the file timeline accordingly.
Quill is a transaction coordination firm, not a brokerage. We coordinate files for Texas agents working under their own brokerage's supervision. We don't provide legal advice, interpret disclosure obligations, or advise sellers on what to disclose. For the full Texas service scope, see the Texas transaction coordination hub. For a broader look at how disclosure requirements fit into the closing process, see the real estate closing checklist.
What does a transaction coordinator do on Texas disclosure compliance?
A TC doesn't advise the seller on what to disclose. That's the listing agent's responsibility (and, where needed, the seller's attorney). The TC's role is process management: verifying the disclosure form is complete, tracking delivery timing against the contract timeline, flagging incomplete sections, confirming buyer acknowledgment, and managing any amendments that trigger additional review windows.
On a standard Texas file, the disclosure compliance work includes: verifying all sections of the Seller's Disclosure Notice are completed at intake, confirming the mold remediation section (Paragraph 6E(11)) has a response, tracking the delivery date, monitoring for seller amendments, tracking the POA resale certificate timeline (if applicable), and verifying lead-based paint disclosure on pre-1978 properties. For the broader TC scope, see what does a transaction coordinator do.
Texas disclosure compliance protects agents as much as buyers
The Seller's Disclosure Notice protects buyers by surfacing known defects. It also protects the listing agent by documenting that the seller was asked and answered. A complete, properly delivered disclosure is the agent's best defense against post-closing claims. The TC's job is making sure that documentation is airtight before the closing table forces the issue.
$350 per file, billed at close. First file free. Texas-specific coordinators handle the forms, deadlines, and closing conventions your files need.
Start your first Texas file with Quill free to see how disclosure tracking fits inside the full TREC timeline.