What must the notice say?

Under Section 5.019(b), the seller must give a written notice in substantially the statutory form stating that the water level of the adjoining impoundment fluctuates for various reasons. The form specifically identifies two categories: an entity lawfully exercising its right to use the stored water, and conditions such as drought or flooding. The notice does not guarantee a water level; it warns the buyer that the level is not fixed and explains why it can change.

When must the seller deliver it?

Under Section 5.019(c), on or before the effective date of the executory contract binding the buyer to purchase the property. Because current TREC residential contract forms include the required disclosure, the notice is often delivered as part of the contract rather than as a separate document. The seller is still responsible for making sure the correct form is used and the notice is actually provided on time.

Why does a reservoir's water level change?

Because reservoirs and lakes built under Chapter 11 of the Water Code are managed for water supply, not to maintain a constant shoreline. The level drops when an entity with rights to the stored water lawfully uses it, and it changes with natural conditions like drought and flooding. A buyer who sees a full reservoir at closing may find the water far lower during a dry year, which is exactly the risk the notice is designed to reveal.

Is this the same as the general seller's disclosure?

No. The general seller's disclosure notice under Section 5.008 is a broad statement of the property's condition required for most residential sales. The Section 5.019 water-level notice is a specific, additional disclosure that applies only to property adjoining a qualifying reservoir or lake. A waterfront seller may need to provide both — the general condition disclosure and the specialized water-level notice — because they address different things.

Texas Water Level Notice: Property Code 5.019 Explained

TL;DR

When a Texas property sits next to a large lake or reservoir, state law requires the seller to warn the buyer that the water level can change, and that requirement comes from Section 5.019 of the Texas Property Code. The notice applies only to the sale of residential or commercial real property adjoining an impoundment of water — a reservoir or lake — that is constructed and maintained under Chapter 11 of the Texas Water Code and has a storage capacity of at least 5,000 acre-feet at its normal operating level. For those waterfront properties, the seller must give the buyer a written notice in substantially the statutory form, explaining that the water level fluctuates for various reasons, including an entity lawfully exercising its right to use the stored water and drought or flood conditions. The notice must be delivered on or before the effective date of the contract binding the buyer to purchase. If the seller fails to deliver it before closing and had actual knowledge that the level fluctuates, the buyer can sue for misrepresentation after the sale. The rule exists because a lakefront view can shrink dramatically when a reservoir is drawn down, and buyers are entitled to know that risk before they commit.

Why the water-level notice exists

A reservoir or lake built and operated for water supply is managed for that purpose, not to keep a constant shoreline. During drought, or when the operating authority releases water to downstream users who hold rights to it, the level can drop and expose mudflats where there was open water. A buyer paying a premium for waterfront property may not realize that the water they see at closing is not guaranteed. Section 5.019 addresses that information gap by making the seller disclose, in writing, that the level fluctuates and why.

The statute is narrow and precise about which properties it covers. It applies only to property adjoining an impoundment built and maintained under Chapter 11 of the Water Code — the chapter governing state water rights — and only where that impoundment holds at least 5,000 acre-feet at normal operating level. Smaller ponds and private lakes fall outside it. This is one of several statutory seller notices in Texas that attach to specific property conditions, and it fits alongside the general condition disclosure covered in our guide to the seller's disclosure notice under Section 5.008.

What the notice must say and when

Section 5.019(b) prescribes the substance of the notice. The seller must give the buyer a written statement in substantially the statutory form, identifying the property and stating that the water level of the adjoining impoundment fluctuates for various reasons. The form specifically lists two categories of cause: an entity lawfully exercising its right to use the water stored in the impoundment, and conditions such as drought or flooding. The notice does not promise any particular water level; it warns that the level is not fixed and explains the legal and natural reasons it can change.

Timing is fixed by Section 5.019(c): the notice must be delivered to the buyer on or before the effective date of an executory contract binding the buyer to purchase the property. In practice, because current TREC residential contract forms include the required disclosure, a seller using the applicable promulgated form may satisfy the requirement as part of the contract. The disclosure travels with the contract rather than being a separate step, but the seller remains responsible for confirming the correct form is used and delivered on time. Other adjoining-water and district notices follow a similar delivery logic, including the municipal utility district notice covered in our guide to the MUD district notice under Water Code 49.452.

Consequences of failing to disclose

Section 5.019(e) gives the notice teeth. After the conveyance, the buyer may bring an action for misrepresentation against the seller if two conditions are met: the seller failed to provide the notice before the date of the conveyance, and the seller had actual knowledge that the water level fluctuates for the reasons the statute describes. Both elements are required — a seller who genuinely did not know the level fluctuated is in a different position from one who knew and stayed silent. The remedy is a misrepresentation claim, which can expose the seller to damages.

This structure — a required written notice, a delivery deadline tied to the contract, and a post-closing remedy for a knowing failure — is typical of Texas statutory seller notices. It places the burden on the seller to disclose a specific, material risk that a buyer might not discover on a single visit, especially if that visit happens when the reservoir is full. Because the notice is built into the standard contract forms, the practical exam point is knowing which properties trigger it (adjoining a 5,000-acre-foot Chapter 11 impoundment) and what the buyer's remedy is for a knowing failure to disclose. To see how these disclosure rules are tested, our Texas real estate practice test includes questions on statutory seller notices.

Frequently Asked Questions

Which properties require the water-level notice?: Under Property Code Section 5.019, only residential or commercial real property adjoining an impoundment of water — a reservoir or lake — that is constructed and maintained under Chapter 11 of the Texas Water Code and has a storage capacity of at least 5,000 acre-feet at its normal operating level. Waterfront property on a large public reservoir is the classic example. Smaller private ponds and lakes that do not meet the 5,000-acre-foot and Chapter 11 requirements are not covered.
What must the notice say?: Under Section 5.019(b), the seller must give a written notice in substantially the statutory form stating that the water level of the adjoining impoundment fluctuates for various reasons. The form specifically identifies two categories: an entity lawfully exercising its right to use the stored water, and conditions such as drought or flooding. The notice does not guarantee a water level; it warns the buyer that the level is not fixed and explains why it can change.
When must the seller deliver it?: Under Section 5.019(c), on or before the effective date of the executory contract binding the buyer to purchase the property. Because current TREC residential contract forms include the required disclosure, the notice is often delivered as part of the contract rather than as a separate document. The seller is still responsible for making sure the correct form is used and the notice is actually provided on time.
What if the seller does not provide the notice?: Under Section 5.019(e), after the conveyance the buyer may sue the seller for misrepresentation if the seller both failed to provide the notice before the conveyance and had actual knowledge that the water level fluctuates for the reasons the statute describes. Both elements must be present. A seller who knew the level fluctuated and did not disclose faces a misrepresentation claim and potential damages; a seller with no such knowledge is treated differently.
Why does a reservoir's water level change?: Because reservoirs and lakes built under Chapter 11 of the Water Code are managed for water supply, not to maintain a constant shoreline. The level drops when an entity with rights to the stored water lawfully uses it, and it changes with natural conditions like drought and flooding. A buyer who sees a full reservoir at closing may find the water far lower during a dry year, which is exactly the risk the notice is designed to reveal.
Is this the same as the general seller's disclosure?: No. The general seller's disclosure notice under Section 5.008 is a broad statement of the property's condition required for most residential sales. The Section 5.019 water-level notice is a specific, additional disclosure that applies only to property adjoining a qualifying reservoir or lake. A waterfront seller may need to provide both — the general condition disclosure and the specialized water-level notice — because they address different things.

Bottom Line

Texas Property Code Section 5.019 requires a seller of residential or commercial property adjoining a reservoir or lake — one built and maintained under Water Code Chapter 11 with at least 5,000 acre-feet of storage at normal operating level — to give the buyer a written notice that the water level fluctuates. The statutory notice explains the level can change because an entity is lawfully using the stored water or because of drought or flooding, and it must be delivered on or before the effective date of the contract. Standard TREC and Texas REALTORS forms already contain the disclosure. If the seller fails to provide it before conveyance and had actual knowledge that the level fluctuates, the buyer may sue for misrepresentation after closing. For related topics, see our guides to the seller's disclosure notice, the MUD district notice, and the Texas real estate practice test.

Source: Texas Property Code § 5.019 (notice of water level fluctuations), added by Acts 2015, 84th Leg. (HB 1665). Property Code § 5.019 (Texas Public Law) · Property Code § 5.019 (FindLaw) · Property Code Ch. 5 (capitol.texas.gov)