When you sell a home in Texas, the Seller’s Disclosure Notice is one of the most important documents you complete. It protects buyers, protects YOU, and creates transparency in the transaction.
Every year, I help dozens of North Texas sellers fill it out correctly so we avoid issues during inspections, negotiations, and closing.
Here’s everything you need to know.
1. What Is the Seller’s Disclosure Notice?
It’s a legally required document (under Texas Property Code §5.008) where the seller discloses what they know about the condition of the home.
✔️ It must be completed honestly
✔️ It must reflect your best knowledge
✔️ It must be filled out by YOU (not me)
✔️ It must be given to the buyer before the contract is final
The key word is “knowledge.”
You’re not required to investigate—just disclose what you already know.
2. Who Must Complete the Disclosure?
Most Texas sellers must provide it.
There are exemptions, but the typical seller in Frisco, Prosper, McKinney, Plano, Celina, Little Elm, Allen, Aubrey, and surrounding communities is not exempt.
3. Who Is Exempt?
Exempt sellers include:
✔️ Banks (REOs)
✔️ Trustees
✔️ Executors of estates
✔️ Foreclosure sales
✔️ Certain transfers between family members
✔️ New construction (builder provides their own forms)
If you’re a typical homeowner selling your residence, you’re *not exempt.
4. What the Disclosure Does Cover
The notice requires you to disclose information about:
✔️ Roof
✔️ Foundation
✔️ Plumbing
✔️ Electrical
✔️ HVAC
✔️ Appliances
✔️ Water heater
✔️ Drainage
✔️ Flooding
✔️ Termites
✔️ Structural repairs
✔️ Insurance claims
✔️ Past flooding or water penetration
✔️ Fire damage
✔️ Renovations
✔️ Environmental hazards
✔️ HOA details
✔️ Deed restrictions
✔️ Flood zone status
✔️ Known defects
✔️ Previous inspections
It's a very thorough document.
5. What the Disclosure Does NOT Cover
You're not required to:
❌ Guess
❌ Investigate
❌ Diagnose problems
❌ Hire specialists
❌ Predict future failures
You only disclose what you know.
6. The Biggest Mistakes Texas Sellers Make
These are the most common errors I see—and they cause contract issues, amendment battles, or liability.
Mistake #1: Leaving Blanks
Every question must be:
✔️ Checked “Yes”
✔️ Checked “No”
✔️ Or marked “Unknown”
Leaving blanks can delay the contract or trigger buyer concerns.
Mistake #2: Not Disclosing Past Repairs
Examples:
✔️ Foundation repairs
✔️ Roof replacements
✔️ HVAC replacements
✔️ Plumbing leaks
✔️ Water penetration
If something happened—and you know about it—disclose it.
Mistake #3: Forgetting Insurance Claims
Even if they happened years ago.
Buyers get a CLUE report.
If claims show up that aren’t disclosed, trust breaks immediately.
Mistake #4: “Checking No” Instead of “Unknown”
If you don’t know, it’s okay to choose “Unknown.”
Never guess.
Mistake #5: Not Disclosing Improvements Requiring Permits
Examples:
✔️ Pool
✔️ Addition
✔️ Garage conversion
✔️ Patio cover
✔️ Major remodels
Buyers need clarity.
Mistake #6: Misunderstanding Flood Questions
Texas flood rules are strict.
If ANY of the following occurred, disclose it:
✔️ Flooding from a storm
✔️ Water entering the home
✔️ Water pooling against the foundation
✔️ Past insurance flood claims
Buyers must know.
Mistake #7: Not Updating the Disclosure After a New Issue Arises
If something happens after you complete the disclosure (like a roof leak or HVAC issue), you must update the form.
7. What Happens If You Don’t Disclose Something?
Consequences can be serious:
❌ Buyer termination
❌ Lawsuits
❌ Loss of earnest money
❌ Damages
❌ Repair liability
❌ Contract rescission
❌ Treble damages for fraud (in extreme cases)
Transparency protects you every time.
8. What Buyers Do With the Disclosure
Buyers use it to:
✔️ Evaluate the home
✔️ Compare against inspection results
✔️ Look for inconsistencies
✔️ Understand the home’s history
✔️ Decide what repairs to request
A strong, detailed disclosure increases buyer confidence.
9. How I Help You Complete It Safely & Correctly
While I cannot fill it out for you, I DO:
✔️ Walk you through every section
✔️ Explain how to answer honestly
✔️ Help you gather paperwork
✔️ Review for missing information
✔️ Check for inconsistencies
✔️ Make sure it’s delivered on time
✔️ Help you correct it if something changes
You don’t have to navigate it alone.
10. My Rule of Thumb
**When in doubt—disclose it.
What you think is minor may matter to the buyer.**
Transparency ALWAYS protects the seller.
Bottom Line: The Seller’s Disclosure Is Your Protection, Not a Liability
When you fill it out clearly and honestly:
✔️ Buyers trust you
✔️ The transaction goes smoother
✔️ Inspection negotiations are easier
✔️ You avoid legal complications
✔️ You protect yourself long-term
A complete disclosure is one of the best tools a seller has to reduce risk.
Need Help Completing Your Seller’s Disclosure?
If you want me to walk you through each section line-by-line, I’m happy to help.
📞 Call or Text: (254) 644-5297✉️ Email Me
