Seller's Disclosure

By
Real Estate Agent with DFW FINE PROPERTIES 0506509

by Patricia Feager, 6/23/2017

 

SELLER'S DISCLOSURE IN TEXAS

 

IS IT BETTER TO DISCLOSE MORE OR LESS ON A SELLER'S DISCLOSURE?

 

The purpose of a Seller's Disclosure is for the owners of the property and/or sellers to provide as much information about the property condition as you can and the Seller should disclose "all known material defects." It is better to disclose more than less or not at all. The term "As Is," is not a get out of court for free, nor is it a defense against what is known as the "deceptive trade practice." Failure to disclose material or physical material facts has serious consequences for the Seller, listing agent, and Broker. Any agent who runs the risk of ignoring to disclose known defects is putting themselves and their Broker at risk, as well. Agents must disclose all material facts about condition of property, e.g., structural defects, foundation, water damage, plumbing, roof, slab or any other type of leaks, septic sytems, roof problems, electrical, heating, air conditioning, ventilation and any pertinent facts that a seller, agent or broker knew or should have known. 

 

What Is Deceptive Trade Practice? 

Failure to disclose material facts is against the law. When in doubt, a Buyer or Seller should contact an Attorney and seek legal advice. In a court case in 1997 in the City of Fort Worth the judge ruled in favor of the buyers over sellers because information contained in the Seller's Disclosure form were considered, "deceptive and misleading." The Court will decide if any "fraud misrepresentation" occurred. It is the responsibility of the Seller to complete the Seller's Disclosure which contains specificl questions about conditions and previous claims or repairs that are known or disclosed from previous inspection reports. 

 

Consumer Protection Act

Real Estate transactions involve large sums of money. Consumers who feel deceived are more likely to take action to assert their rights and it is the seller's responsibility to disclose, disclose, disclose. Deception has liability and consequences that often result in much more than telling the truth in the first place and getting things repaired properly and disclosing. The "Deceptive Trade Practices and Consumer Protection Act (DTPA) was passed by the Texas legislature in 1973 but it wasn't until 1975 that the act was amended to "include transactions involving real property purchased or leased."

What's the premise of the law? To protect consumers against "false, misleading and deceptive business practice, unconscionable actions and breaches of warranty."

 

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Texas Law requires all license holders to provide the Information about Brokerage Services form to prospective clients.

Real Estate Commission Consumer Protection Notice  

 

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DFW FINE PROPERTIES

                                        2900 W Southlake Blvd, Suite 180
                                        Southlake, TX 76092
                                        Office: 817-748-4800/FAX: 817-748-4900

                                         Patricia Feager
                                                        Cell: 469-951-4758

                                                        Email: patricia.feager@gmail.com

 

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Show All Comments
Rainmaker
4,432,217
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I love the post. I hope home sellers will read it and learn from it 

Jun 24, 2017 03:32 AM #1
Rainmaker
1,435,090
Kat Palmiotti
Grand Lux Realty 914-419-0270 (NY), kat@thehousekat.com, (MT) 406-270-3667, more information to be provided shortly - Kalispell, MT
The House Kat

Here, sellers can either fill out the disclosure or provide a $500 credit at closing to the buyer. I have never seen one fill out the disclosure (not yet anyway).

Jun 24, 2017 04:00 AM #2
Rainmaker
1,542,335
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Patricia Feager With our SPD in Florida, there are three columns, Yes, No and Don't Know. I have never had a seller not complete and SPD. Failure to provide one is a 'Red Flag' to potential buyers.

Jun 24, 2017 04:28 AM #3
Rainmaker
3,982,464
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have said ti many a time...It is best to disclose and over disclose to CYA!

Jun 24, 2017 04:50 AM #4
Rainmaker
3,129,914
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Lately it seems like anything disclosed on the cond report is flagged by underwriters

Jun 24, 2017 07:59 AM #5
Ambassador
2,302,221
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

There is no reason not to disclose.  They buyer will find things out and it is better to be upfront from day one.

Jun 24, 2017 09:46 AM #6
Ambassador
3,982,999
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I was telling a seller this week even though she has fixed a problem she still needs to disclose that she did. Some sellers don't get it.

Jun 24, 2017 06:59 PM #7
Rainmaker
2,536,283
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Disclosure and transparency protects the seller.  There is nothing worse than hearing that "F" word bantered about.  That "F" word being FRAUD.

Jun 25, 2017 05:12 AM #8
Rainmaker
756,771
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

As our state association attorney always says - DISCLOSE, DISCLOSE, DISCLOSE.

Jun 26, 2017 12:43 PM #9
Rainmaker
1,490,694
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

Here, we use C.A.R. forms: Seller Property Questionnaire and TDS for seller to disclosure all material known facts about the property. The explanation should be clear, complete, and coherent. Regardless of disclosures, buyers have to conduct a careful inspection of the property. 

Oct 08, 2017 04:39 PM #10
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Rainmaker
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Patricia Feager, MBA, CRS, GRI,MRP

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