What Is a Seller's Disclosure in Texas and What Must You Include?

Selling a home in Texas comes with a long to-do list. One of the most important steps — and one that catches many sellers off guard — is the Seller's Disclosure Notice. This document is not just a formality. It is a legally required statement that can protect you from future lawsuits or open the door to them.

If you are selling a home in Austin, Round Rock, Cedar Park, or anywhere in Texas, this guide will walk you through everything you need to know about the seller's disclosure: what it is, what it covers, who is exempt, and what happens if you get it wrong.

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What Is the Seller's Disclosure Notice?

The Seller's Disclosure Notice is a standardized form created by the Texas Real Estate Commission (TREC). The current version — TREC Form 55-1 — was updated with an effective date of May 28, 2026. It is required under Section 5.008 of the Texas Property Code for sellers of previously occupied single-family residences.

The form's purpose is simple: tell the buyer about the physical condition of the property. Texas is what the real estate industry calls a "caveat emptor" (buyer beware) state, but the seller's disclosure flips some of that responsibility onto the seller. You are not required to hire an inspector or make guarantees, but you are required to disclose what you know.

According to the TREC, the form "contains information required to be disclosed by Section 5.008 of the Texas Property Code regarding material facts and the physical condition of the property."

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What Does the Seller's Disclosure Cover?

The TREC Form 55-1 is comprehensive. It covers nearly every major system and component of your home. Here is a breakdown of the key sections:

1. Water and Moisture Issues

The form asks whether the property has ever experienced water penetration, flooding, or drainage problems. This includes:

• Water in the basement or crawlspace
• Roof leaks
• Plumbing leaks
• Standing water near the foundation
• Past or present mold

If your home had a roof leak five years ago that was fully repaired, you still must disclose it. The buyer deserves to know the history, even if the problem no longer exists.

2. Foundation and Structural Issues

Texas is famous for its expansive clay soils, which can cause foundation movement. The disclosure asks:

• Has the foundation ever been inspected or repaired?
• Are there cracks in walls, ceilings, or the slab?
• Has the home ever experienced slab leaks?
• Are there drainage issues that affect the foundation?

If you had foundation repair work done — even if it came with a lifetime warranty — disclose it. Buyers will want to see the repair documents and warranty transfer.

3. Roof

The form asks about the age of the roof, any past or present leaks, and whether the roof has been repaired or replaced. In Central Texas, where hailstorms are common, roof history matters a great deal to buyers and their insurance companies.

4. HVAC, Plumbing, and Electrical Systems

You must disclose the condition and known issues with:

• Heating and air conditioning systems (age, repairs, operational status)
• Water heaters (age, type, condition)
• Plumbing system (type of pipes, known leaks, gas vs. electric)
• Electrical system (panel type, known issues, aluminum wiring)

If your HVAC unit is 15 years old and you know it struggles on 100-degree days, disclose it. If you replaced the water heater last year, that is good news — but still needs to be noted.

5. Appliances

The disclosure covers which appliances convey (stay with the house) and their working condition. This includes refrigerators, dishwashers, ovens, ranges, microwaves, garbage disposals, and washer/dryer hookups.

6. Environmental and Hazard Conditions

This is one of the most critical sections. You must disclose known issues with:

• Lead-based paint — Required by federal law for homes built before 1978
• Mold or mildew — Past or present
• Radon gas — Known elevated levels
• Asbestos — Known presence in flooring, siding, or insulation
• Termite or wood-destroying insect damage — Past or present, including treatments
• Oil or gas leaks — From underground storage tanks

7. Insurance Claims and Prior Inspections

The form asks whether the seller has filed any insurance claims related to the property in the past — typically within the last five years. It also asks whether the seller has had the property inspected and whether that inspection revealed any material defects.

If you filed a roof claim after a hailstorm in 2023, disclose it. Even if the claim was denied or the repair was minor, transparency protects you.

8. HOA, Restrictions, and Legal Issues

The disclosure asks about:

• Homeowners association membership and fees
• Deed restrictions or covenants
• Pending lawsuits or legal actions affecting the property
• Boundary disputes or encroachments

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Who Is Exempt From the Seller's Disclosure?

Not every seller is required to provide the disclosure. Under Texas Property Code §5.008(h), the following transactions are exempt:

1. New construction — Homes that have never been occupied
2. Foreclosures and bank-owned properties (REO) — Lenders who acquired the property through foreclosure
3. Estate sales — Executors or administrators who never lived in the home and may not know its condition
4. Divorce or death — A seller who acquired the property through divorce decree or death of a co-owner, and who has not lived in the home
5. Trustees in bankruptcy — Sales handled by a bankruptcy trustee
6. Relocation companies — When the seller has never occupied the property

Even if you are exempt, you must still disclose known material defects under common law principles. The exemption means you do not have to fill out the TREC form, but you cannot actively conceal problems.

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What Happens If You Fail to Disclose?

Failing to disclose a known defect is one of the most common causes of real estate litigation in Texas. Here is what can go wrong:

Buyer Termination

If the seller fails to provide the disclosure before the contract is executed, the buyer may have the right to terminate the contract. Under the standard TREC residential contract, the buyer can often back out and receive their earnest money back.

Fraud and Misrepresentation Lawsuits

If a buyer discovers an undisclosed defect after closing, they can sue for:

• Fraudulent misrepresentation — The seller knowingly lied or concealed a material fact
• Negligent misrepresentation — The seller provided false information without reasonable grounds
• Breach of contract — The disclosure was part of the contract terms
• Violations of the Deceptive Trade Practices Act (DTPA) — This can include treble damages (up to three times actual damages) and attorney's fees

Example Scenario

Imagine you sold your home in Austin and knew the foundation had a crack that was repaired, but you left that section blank on the disclosure. Six months later, the buyer notices foundation movement and hires an inspector, who finds the repair history. The buyer can sue you for the cost of repairs, legal fees, and potentially additional damages under the DTPA.

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Best Practices for Sellers in Austin and Central Texas

1. When in Doubt, Disclose

The golden rule of seller disclosures is: when in doubt, disclose. You are not penalized for over-disclosing. You are penalized for withholding information. If you are unsure whether something is material, write it down. Buyers appreciate honesty and are less likely to pursue legal action if everything was on the table from the start.

2. Use the Most Current TREC Form

TREC periodically updates the Seller's Disclosure Notice. The current version — Form 55-1, effective May 28, 2026 — reflects the latest legal requirements. Using an outdated form could mean you are missing required disclosures. Always download the latest version from the TREC website.

3. Keep Documentation of Repairs

If you have had repairs done — foundation work, roof replacement, plumbing repairs, mold remediation — keep the invoices, warranties, and inspection reports. Provide copies to the buyer. This not only strengthens your disclosure but also builds trust.

4. Do Not Rely Solely on Memory

If you have lived in your home for many years, you may not remember every minor repair. Review your records, insurance claim history, and maintenance receipts before filling out the form. You can also note "Unknown" where genuinely appropriate — but do not use it as a way to avoid disclosing things you do know.

5. Work With Your Realtor

Your listing agent should review the disclosure with you before it goes to the buyer. A knowledgeable Central Texas Realtor will help you identify areas that commonly cause problems — foundation issues, roof age, water damage — and make sure they are properly documented.

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Common Questions From Texas Home Sellers

Can I sell my house "as-is" and skip the disclosure?

No. "As-is" means you are not making repairs, but it does not exempt you from the disclosure requirement. Even as-is sellers must complete the TREC Form 55-1 if they are selling a previously occupied single-family home.

What if I inherited the house and never lived in it?

You may be exempt under the estate sale provision in Texas Property Code §5.008(h). However, if you know of any defects — for example, the roof was leaking when your relative passed away — you should still disclose that information.

Do I need to disclose a death in the home?

No. Texas law does not require sellers to disclose deaths by natural causes, suicide, or accidents unrelated to the property's physical condition. However, if the death was caused by a property defect (such as a faulty staircase), the defect itself must be disclosed.

What if the buyer waives the disclosure?

A buyer can agree to waive the disclosure, but this should be done in writing. Even with a waiver, you cannot actively conceal known material defects. Waiver does not give you license to commit fraud.

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The Bottom Line

The Seller's Disclosure Notice is one of the most important documents in a Texas real estate transaction. It protects buyers by giving them a clear picture of the home's condition, and it protects sellers by creating a record of transparency.

If you are selling a home in Austin, Round Rock, Georgetown, Cedar Park, Pflugerville, Leander, or anywhere in the Central Texas region, take the disclosure seriously. Fill it out honestly, use the current TREC form, keep good records, and work with a Realtor who understands local market conditions and common property issues.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For questions about your specific situation, consult a licensed Texas real estate attorney or your Realtor.

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Are you planning to sell your home in the Austin area? I can help you navigate the disclosure process, price your home correctly, and get it sold. Contact me for a free consultation.