What is the Seller's Disclosure Notice in Texas?

The Seller's Disclosure Notice is a written document required under Texas Property Code Section 5.008 in which the seller of single-family residential property discloses known information about the property's condition. The standard form is the TREC Seller's Disclosure Notice (OP-H), though sellers may use other compliant forms. It must be delivered to the buyer on or before the effective date of the contract. The disclosure covers structural condition, mechanical systems, water and drainage, environmental hazards, repair history, legal matters, and other material facts about the property. The seller is required to disclose what they know, have been told, or have reason to believe.

When must the seller's disclosure be delivered to the buyer?

The Seller's Disclosure Notice must be delivered to the buyer on or before the effective date of the contract (the date the last party signs). If the disclosure is delivered after the effective date, the buyer has the right to terminate the contract within 7 days after receiving it. This 7-day termination right is in addition to (not instead of) the buyer's other rights under the contract, including the option period. Late delivery doesn't void the contract automatically — the buyer must affirmatively terminate within the 7-day window to exercise that right.

What is the difference between seller's disclosure and the option period?

These are two separate buyer protections that work independently. The Seller's Disclosure Notice is the seller's written attestation of known property condition, required by Texas Property Code Section 5.008, and must be delivered on or before the effective date. The option period (TREC contract paragraph 5) is a buyer's negotiated right to terminate the contract for any reason during a specified number of days, in exchange for a non-refundable option fee. They serve different purposes: the disclosure tells the buyer what's known about the property; the option period gives the buyer time to investigate and decide whether to proceed regardless of what they find. Both are common to Texas residential transactions and are tested separately on the exam.

Is the listing agent responsible if the seller doesn't disclose something?

The seller is primarily responsible for completing and signing the Seller's Disclosure Notice — it's the seller's statement about the property. However, the listing agent has an independent obligation under TRELA (Texas Real Estate License Act) and TREC rules to disclose material facts known to the agent, regardless of what the seller did or didn't put on the disclosure form. If the agent knows of a material defect not disclosed by the seller, the agent must disclose it to the buyer. Failure to do so can result in TREC discipline (suspension, revocation, fines), civil liability to the buyer, and brokerage liability. The duty to disclose material facts is a core agent obligation that operates separately from the seller's statutory disclosure form.

Does federal law require lead-based paint disclosure in Texas?

Yes, for residential properties built before 1978. Federal law (Title X, the Residential Lead-Based Paint Hazard Reduction Act) requires sellers of pre-1978 residential properties to disclose any known information about lead-based paint or lead-based paint hazards, provide a federal lead disclosure form, provide the EPA pamphlet "Protect Your Family from Lead in Your Home," and grant the buyer a 10-day period to conduct lead-based paint inspections (which the buyer may waive). This is separate from and in addition to the Texas Seller's Disclosure Notice. Penalties for violations include civil penalties of up to three times damages and possible criminal penalties for knowing violations.

What are material facts that agents must disclose regardless of seller's disclosure?

A material fact is any information that a reasonable buyer would want to know before deciding whether to purchase the property. Examples include known structural defects, recurring water intrusion or flooding, boundary disputes, pending litigation affecting the property, environmental hazards, known major repairs needed, and significant title issues. Under TRELA and TREC rules, the agent has an independent duty to disclose material facts known to them, regardless of who the agent represents and regardless of what the seller put on the disclosure form. The agent cannot legally rely on the seller's disclosure to insulate themselves from this duty — if the agent knows the material fact through any source, the agent must disclose it. Failure to disclose material facts is a serious license law violation and a frequent source of TREC disciplinary action.

Texas Real Estate Property Disclosure Requirements: Complete Guide

TL;DR

Texas property disclosure requirements are governed primarily by Section 5.008 of the Texas Property Code, which requires sellers of single-family residential property to provide the buyer with a Seller's Disclosure Notice describing the property's condition and known defects. The standard form is the TREC Seller's Disclosure Notice (OP-H), though sellers may use other forms that meet the statutory requirements. The disclosure is the seller's responsibility (not the agent's), must be delivered to the buyer on or before the effective date of the contract, and covers material facts known to the seller — including defects, repairs, environmental hazards, and certain legal/structural matters. For certain pre-1978 properties, federal lead-based paint disclosure (Title X) also applies. On the TX Real Estate Sales Agent exam, property disclosure topics are tested in multiple formats: the exemptions from disclosure, what must be disclosed, agent liability for known but undisclosed defects (material facts agents must disclose regardless), and the consequences of disclosure violations. Disclosure compliance is one of the most consequential areas of Texas real estate law for both legal exposure and ethics.

What Property Disclosure Means in Texas

Texas requires sellers of most single-family residential properties to provide buyers with a Seller's Disclosure Notice documenting the seller's knowledge of the property's condition. The requirement comes from Texas Property Code Section 5.008 and is one of the most consequential consumer protection laws in Texas real estate.

The disclosure serves several purposes:

Protects buyers by giving them written notice of known issues before they commit to purchase
Limits seller liability by creating a documented record of what was disclosed (sellers who properly disclose are protected from later claims about disclosed conditions)
Establishes a baseline for the property's known condition at the time of sale
Supports the buyer's due diligence by directing attention to areas worth investigating

The form is the seller's responsibility — not the agent's — though agents are required to advise sellers of the disclosure requirement and ensure the form is completed properly.

When the Disclosure Is Required

The Seller's Disclosure Notice is required for transfers of single-family residential property unless an exemption applies.

Disclosure is required for transfers of:

Single-family residential homes (most common case)
Condominium units intended for residential use
Manufactured homes considered real property (affixed to the land)
Cooperative housing units

Specific exemptions (Section 5.008(e)) where no disclosure is required:

Transfers pursuant to court order (probate, divorce, foreclosure)
Transfers by a trustee in bankruptcy
Transfers from one co-owner to another (e.g., spouse-to-spouse)
Transfers between family members (parent to child, sibling to sibling) under certain circumstances
Transfers from a decedent's estate in many cases
Transfers to a beneficiary of a deed of trust (foreclosure transfers)
Transfers to a mortgagor by a mortgagee acquiring the property at foreclosure
Transfers from one government agency to another
New construction not yet occupied (built-but-unsold new homes)
Property where the seller has not occupied it in the previous year (limited exemption with conditions)

Important: Exemption from the disclosure form requirement does NOT exempt the seller from common-law obligations to disclose known material defects that pose health and safety risks. Even where a written disclosure is exempted, sellers can still be liable for fraud or misrepresentation if they affirmatively conceal or misrepresent known material defects.

Timing: When Must the Disclosure Be Delivered

The Seller's Disclosure Notice must be delivered to the buyer on or before the effective date of the contract (the date the last party signs).

If delivered before the effective date: No additional buyer remedies are triggered (the buyer received the disclosure as required).

If delivered after the effective date: The buyer has the right to terminate the contract within 7 days after receiving the disclosure (Texas Property Code Section 5.008(d)). The buyer is not required to terminate but has the option; the right is the buyer's remedy for late delivery.

If never delivered or improperly delivered: The buyer's termination remedy persists, and the seller may face additional liability for failure to comply with the statute.

This timing is one of the most-tested topics on the TX State portion. The 7-day termination right after late delivery is a frequent exam-question fact.

What Must Be Disclosed on the Notice

The TREC Seller's Disclosure Notice (OP-H) and similar compliant forms cover, at minimum:

Property Condition and Defects

Structural defects known to the seller (foundation issues, roof problems, etc.)
Mechanical systems condition (HVAC, plumbing, electrical, appliances included in sale)
Water and drainage issues (flooding, ponding, drainage problems)
Environmental hazards (asbestos, radon, lead, etc.)
Pest and infestation issues (current or past, including treatment history)
Repairs and improvements (with or without permits, professional or DIY)
Roof history (age, replacement, repairs, leaks)
Foundation history (any repairs, settling, cracks)

Legal and Structural Matters

Easements, encroachments, or boundary disputes
Liens or encumbrances on the property
Homeowner association issues (HOA disputes, special assessments, restrictions)
Pending legal action affecting the property
Code violations known to the seller
Permits and inspections (whether work was done with required permits)

Environmental and Hazard Disclosures

Lead-based paint for properties built before 1978 (federal requirement separately)
Mold or moisture issues in the property
Asbestos-containing materials known to be present
Underground storage tanks present on the property
Radon test results if known

Property Use and History

Flooding history of the property (or in the area)
Insurance claims filed on the property (especially water/storm damage)
Previous use of the property (commercial use, illegal activity, etc.)
Death on the property — Texas Property Code §5.008(c) generally exempts deaths from natural causes, suicide, or accidents unrelated to the property’s condition. A death caused by a property condition, or a known homicide, may still be material. If asked directly, sellers and agents should avoid misrepresentation and seek broker or legal guidance.

The form is a written attestation by the seller of what the seller knows, has been told, or has reason to believe about the property. Sellers are not required to investigate or hire experts to fill out the form — they disclose what they actually know.

Lead-Based Paint Disclosure (Federal — Title X)

For properties built before 1978, federal law (Title X, the Residential Lead-Based Paint Hazard Reduction Act) requires sellers to:

Provide a federal lead disclosure form along with the Seller's Disclosure Notice
Disclose any known information about lead-based paint or lead-based paint hazards
Provide records or reports of lead-based paint testing or remediation
Provide the EPA pamphlet "Protect Your Family from Lead in Your Home"
Grant the buyer a 10-day period to conduct lead-based paint inspections (waivable by buyer)

The federal lead-based paint disclosure is separate from and in addition to the Texas Seller's Disclosure Notice. Failure to comply with the federal law can result in:

Civil penalties of up to three times damages
Criminal penalties for knowing violations
EPA enforcement action

The 1978 cutoff is because residential lead-based paint was banned for use in 1978. Properties built before that date may contain lead-based paint, creating health risks especially for children.

Material Facts: Agents' Duty to Disclose Regardless

Even where the seller is exempt from completing a disclosure notice, the listing agent and selling agent both have ongoing obligations under TRELA and TREC rules to disclose material facts known to them that could affect the buyer's decision.

A material fact is information that a reasonable buyer would want to know before deciding to buy the property. Examples include:

Known structural defects
Recurring water intrusion or flooding
Boundary disputes or pending litigation
Environmental hazards
Known major repairs needed
Known issues with the title

Agents cannot legally claim "the seller didn't disclose it" if the agent knew the material fact independently. TRELA imposes a duty to honestly disclose material facts to all parties, regardless of who the agent represents.

This is one of the most consequential ethical and legal areas in Texas real estate. License revocation, civil damages, and TREC discipline are all on the table for agents who knowingly fail to disclose material facts.

Consequences of Disclosure Violations

Violations of Texas disclosure requirements (statutory and common-law) can have serious consequences:

Seller liability:

Civil damages to the buyer (cost to repair undisclosed defects, diminution in value)
Rescission of the sale in some cases (forcing the seller to take back the property)
Punitive damages for fraud or knowing concealment
Attorney's fees for the prevailing party
Tax consequences in some jurisdictions

Agent liability:

TREC disciplinary action (license suspension, revocation, fines)
Civil liability to the buyer or seller
Brokerage liability (vicariously liable for agent's misconduct in many cases)
Reputation harm in the local market

The most-tested exam content focuses on the seller's statutory obligations (Section 5.008) and the agent's TRELA/TREC obligations to honestly disclose material facts.

Common Exam Scenarios

Scenario 1: Late Disclosure Delivery

"Seller signs the contract on March 1 (effective date). Buyer doesn't receive the Seller's Disclosure Notice until March 7 (after effective date). What is the buyer's remedy?"

Analysis: Because the disclosure was delivered after the effective date, the buyer has the right to terminate the contract within 7 days after receiving the disclosure. The buyer has until March 14 (March 7 + 7 days) to terminate. The buyer is not required to terminate but may do so.

Scenario 2: Agent Knowledge of Material Defect

"Listing agent shows the property to a buyer. The seller's disclosure says nothing about a known recurring flooding issue. The listing agent personally observed the flooding during recent rains. What is the listing agent's duty?"

Analysis: The listing agent has a duty under TRELA to disclose material facts known to them, regardless of what the seller put on the Seller's Disclosure Notice. The flooding is a material fact (a reasonable buyer would want to know), so the listing agent must disclose it to the buyer. Failing to disclose creates significant legal exposure for the agent and possible TREC discipline.

Scenario 3: Exempt Seller Disclosure

"Seller inherited the property and is selling it without ever having occupied it. Is a Seller's Disclosure Notice required?"

Analysis: Likely no formal Section 5.008 disclosure is required (estate transfer exemption, plus seller has not occupied). However, the seller is still liable under common law if they affirmatively misrepresent or conceal known material defects. The agent must still disclose any material facts they know to the buyer.

Scenario 4: Pre-1978 Property and Lead Paint

"The property was built in 1965. The seller has never had lead paint testing done and doesn't know if lead paint is present. What must the seller disclose?"

Analysis: Federal law requires the seller to (1) disclose any known information about lead-based paint or hazards (none known here, which must be stated), (2) provide the federal lead disclosure form, (3) provide the EPA pamphlet, and (4) grant the buyer a 10-day inspection period. The lack of knowledge is disclosed as such — the seller doesn't need to test, but must acknowledge that no testing has been done and that the buyer has the right to test during the 10-day window.

Common Mistakes and Misconceptions

"The disclosure is the agent's responsibility to complete." False. The Seller's Disclosure Notice is the seller's responsibility. The agent's role is to advise the seller of the requirement and ensure proper completion and delivery.
"If the seller doesn't know something, they don't need to disclose it." Partially true. The seller is required to disclose what they know, have been told, or have reason to believe. Sellers who deliberately remain uninformed to avoid disclosure can still face liability.
"Exempt sellers can hide anything they want." False. Exempt sellers (estate transfers, court-ordered sales) are exempt from completing the statutory form, but they remain liable for fraud or misrepresentation if they affirmatively conceal known material defects.
"Agents only need to disclose what's on the seller's disclosure form." False. Agents have an independent duty under TRELA to disclose material facts they know, regardless of what the seller did or didn't disclose.
"The buyer can never terminate after the option period." False (in context of disclosure). If the disclosure is delivered after the effective date, the buyer gets a separate 7-day termination right that operates independently of the option period.
"Lead-based paint disclosure is only for buyer's information." False. It's a federal mandatory disclosure with significant penalties for violations. Pre-1978 properties without proper lead disclosure compliance can expose sellers to triple damages.
"Sellers must disclose deaths on the property." Mostly false. Texas Property Code §5.008(c) says there is no duty to disclose a death by natural causes, suicide, or an accident unrelated to the property’s condition. But a death caused by a property condition, or a known homicide, may be a material fact. If asked directly, sellers and agents should not misrepresent facts and should seek broker or legal guidance.

Frequently Asked Questions

What is the Seller's Disclosure Notice in Texas?: The Seller's Disclosure Notice is a written document required under Texas Property Code Section 5.008 in which the seller of single-family residential property discloses known information about the property's condition. The standard form is the TREC Seller's Disclosure Notice (OP-H), though sellers may use other compliant forms. It must be delivered to the buyer on or before the effective date of the contract. The disclosure covers structural condition, mechanical systems, water and drainage, environmental hazards, repair history, legal matters, and other material facts about the property. The seller is required to disclose what they know, have been told, or have reason to believe.
When must the seller's disclosure be delivered to the buyer?: The Seller's Disclosure Notice must be delivered to the buyer on or before the effective date of the contract (the date the last party signs). If the disclosure is delivered after the effective date, the buyer has the right to terminate the contract within 7 days after receiving it. This 7-day termination right is in addition to (not instead of) the buyer's other rights under the contract, including the option period. Late delivery doesn't void the contract automatically — the buyer must affirmatively terminate within the 7-day window to exercise that right.
What is the difference between seller's disclosure and the option period?: These are two separate buyer protections that work independently. The Seller's Disclosure Notice is the seller's written attestation of known property condition, required by Texas Property Code Section 5.008, and must be delivered on or before the effective date. The option period (TREC contract paragraph 5) is a buyer's negotiated right to terminate the contract for any reason during a specified number of days, in exchange for a non-refundable option fee. They serve different purposes: the disclosure tells the buyer what's known about the property; the option period gives the buyer time to investigate and decide whether to proceed regardless of what they find. Both are common to Texas residential transactions and are tested separately on the exam.
Is the listing agent responsible if the seller doesn't disclose something?: The seller is primarily responsible for completing and signing the Seller's Disclosure Notice — it's the seller's statement about the property. However, the listing agent has an independent obligation under TRELA (Texas Real Estate License Act) and TREC rules to disclose material facts known to the agent, regardless of what the seller did or didn't put on the disclosure form. If the agent knows of a material defect not disclosed by the seller, the agent must disclose it to the buyer. Failure to do so can result in TREC discipline (suspension, revocation, fines), civil liability to the buyer, and brokerage liability. The duty to disclose material facts is a core agent obligation that operates separately from the seller's statutory disclosure form.
Does federal law require lead-based paint disclosure in Texas?: Yes, for residential properties built before 1978. Federal law (Title X, the Residential Lead-Based Paint Hazard Reduction Act) requires sellers of pre-1978 residential properties to disclose any known information about lead-based paint or lead-based paint hazards, provide a federal lead disclosure form, provide the EPA pamphlet "Protect Your Family from Lead in Your Home," and grant the buyer a 10-day period to conduct lead-based paint inspections (which the buyer may waive). This is separate from and in addition to the Texas Seller's Disclosure Notice. Penalties for violations include civil penalties of up to three times damages and possible criminal penalties for knowing violations.
What are material facts that agents must disclose regardless of seller's disclosure?: A material fact is any information that a reasonable buyer would want to know before deciding whether to purchase the property. Examples include known structural defects, recurring water intrusion or flooding, boundary disputes, pending litigation affecting the property, environmental hazards, known major repairs needed, and significant title issues. Under TRELA and TREC rules, the agent has an independent duty to disclose material facts known to them, regardless of who the agent represents and regardless of what the seller put on the disclosure form. The agent cannot legally rely on the seller's disclosure to insulate themselves from this duty — if the agent knows the material fact through any source, the agent must disclose it. Failure to disclose material facts is a serious license law violation and a frequent source of TREC disciplinary action.

Bottom Line

Texas property disclosure requirements are governed by Texas Property Code Section 5.008, which requires sellers of most single-family residential properties to provide buyers with a Seller's Disclosure Notice describing known property condition. The standard form is the TREC Seller's Disclosure Notice (OP-H). The disclosure must be delivered on or before the effective date of the contract; late delivery triggers a 7-day termination right for the buyer. Federal law adds a lead-based paint disclosure requirement for pre-1978 properties, with a separate 10-day inspection right and significant penalties for violations. Agents have an independent obligation under TRELA to disclose material facts known to them, regardless of what the seller did or didn't disclose. On the TX Real Estate Sales Agent exam, disclosure topics test knowledge of timing (effective date and 7-day termination right), what must be disclosed, exemptions, lead-based paint compliance, and the difference between seller obligations and agent obligations. Mastering these distinctions is essential both for the exam and for legal compliance in active practice. For the broader cluster, see the Texas Real Estate Exam guide.

Source: Texas Property Code Chapter 5 · TREC Promulgated Contract Forms · TREC Rules and Laws