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What is a Seller’s Disclosure?

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In Texas, a seller’s disclosure of property condition is a required legal document to sell pre-owned single-family homes. This video helps explain why and how to use the seller’s disclosure form.

A seller’s disclosure form documents appliances, equipment, and features existing on the property. It reports defects and malfunctions in critical systems. It describes earlier events, like termite treatment, fires, foundation repair, flooding, and deaths. It identifies unpermitted improvements, unpaid fees, violations of deed restrictions, and lawsuits. It should report on any conditions that can affect health or safety.
 
The Sellers Disclosure protects both buyer and seller. The buyer becomes aware of risks and features. It protects the seller from liability of an undisclosed defect. Concealing defects is criminal fraudulent inducement. Also, parties must understand a repaired defect is no longer a defect. It should show repairs indicating possible future defects. Foundation and underground plumbing repairs fall into this category.
 
Understand there is no such thing as “sold as-is” to avoid the duty to disclose. A seller must provide a sellers disclosure whether they have lived in the home or not. There are exceptions to the duty of providing a sellers disclosure. Excluded are financial institutions, new construction, estates, and multi-family homes. 
 
For a buyer, a seller’s disclosure does not prevent the need for a thorough inspection. It can give guidance on items of inspection that need more attention. For sellers, a seller’s disclosure is not only a form of legal protection it is a selling document as well. It can highlight the quality and age of newer items and existing warranties.s

Notice: This website contains general information about legal and financial matters. The information is not advice, and should not be treated as such. You must not rely on the information on this website as an alternative to legal or financial advice from your attorney, accountant or other professional services provider. If you have any specific questions about any legal and financial matter you should consult your attorney, accountant or other professional services provider.