If you’re planning to sell your home in Texas, you almost always need to provide a seller’s disclosure form. This form is provided to buyers informing them of any known defects to the property, previous repairs, and general property conditions. There are a few exceptions for the mandate to provide a seller’s disclosure, and they are noted in the Texas Property Code. These exceptions include:
While a seller’s disclosure is not required in these cases, you may still want to provide a seller’s disclosure if you have knowledge of the property. One of, if not the most, common reason for lawsuits in real estate is from failing to disclose known information about the property condition. So, if you own a fourplex, and you previously were the landlord for the property. You likely know about some aspects of the property’s condition. I’d recommend completing a seller’s disclosure form even though you are not required to per the Texas Property Code.
- a seller of residential property consisting of more than one dwelling unit
- new construction homes or builder exemption
- trustee in a bankruptcy case
- executor of a will selling the property
- relocation company (when the relocation company is NOT the seller
- a sale to or from a government entity
- sale from one co-owner to one or more other co-owners
- sale made to a spouse or to a person or persons in the lineal line of consanguinity of one or more of the transfers
- sales between spouses resulting from a decree of dissolution of marriage or a decree of legal separation or from a property settlement agreement to such a decree
- sale of real property where the value of any dwelling does not exceed five (5%) percent of the value of the property
While a seller’s disclosure is not required in these cases, you may still want to provide a seller’s disclosure if you have knowledge of the property. One of, if not the most, common reason for lawsuits in real estate is from failing to disclose known information about the property condition. So, if you own a fourplex, and you previously were the landlord for the property. You likely know about some aspects of the property’s condition. I’d recommend completing a seller’s disclosure form even though you are not required to per the Texas Property Code.
The seller’s disclosure form I recommend my clients use is the Texas Association of REALTORS® Seller’s Disclosure Notice (TAR-1406). This form is composed of eleven sections. The first section simply lists which features a property has.
The second, third and fourth sections deal with known issues, defects or conditions at the property. The fifth section addresses a range of property conditions including if the property is located in an HOA. The sixth section deals with the survey, and the seventh section asks owners to list any inspections provided within the past four years. If you have an inspection report from this time frame, you must provide it. Section eight pertains to tax exemptions, and section nine addresses insurance claims to the property. Section 11 require’s seller’s to disclose knowledge in regards to the presence of smoke detectors on the property.
The last page of the seller’s disclosure notice should not be ignored. It discusses additional notices to buyers and the utility providers for the property. Filling out the utility provider fields will make it much easier for the buyer to transfer utilities when the property is sold.
The last page of the seller’s disclosure notice should not be ignored. It discusses additional notices to buyers and the utility providers for the property. Filling out the utility provider fields will make it much easier for the buyer to transfer utilities when the property is sold.
If you have questions about the Texas Seller’s Disclosure notice, or selling your home, contact me today.
This post originally appeared on shesellsaustin.com
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