From “Ask the Realtor” – May 5th, 2017
A seller of residential real estate in Texas must, under state law, disclose what the seller knows about the condition of the property. (See Texas Property Code Section 5.008.) This includes conditions known to the seller that would not be discovered by the purchaser making reasonable investigation of the property.
The seller’s disclosure notice statute contains 11 narrow exemptions. You’re not likely to come across these situations frequently. The most common of these exemptions apply to:
- A builder of a new home
- A trustee or executor of an estate
- The lender after foreclosing on a property.
The statutory requirement to provide the notice does not apply to any lease transaction, no matter the duration of the lease period.
The statute does not require disclosure of deaths by natural causes, suicide, or accidents unrelated to the condition of the property.
Deaths caused by an accident related to a condition of the property are not covered by the “no duty” statute and most likely need to be disclosed. This is the case even if the condition has been remedied. For example, although it could be argued that a swimming-pool death may be related to the lack of a proper pool enclosure, a seller who installs a proper pool enclosure before the property is placed on the market should still consider disclosing the death, as it was related to a condition of the property.
Murder is not covered by this “no duty” statute either. Since a murder occurring on the property might be considered a material fact a buyer would want to know, it’s prudent for sellers to disclose.
(Information from Texas Association of Realtors)
If you would like to learn more about this topic, give us a call at 512-756-2775.