The Texas Seller's Disclosure Notice, Explained

Nearly every Texas home sale starts with a seller filling out a multi-page notice about the condition of the house, and nearly every buyer reads it too quickly. This page covers what Property Code Section 5.008 requires, the difference between the TREC form and the Texas REALTORS version, the flood questions that matter most in Houston, the separate MUD and PID notices, who is exempt, and how to read a notice as a buyer.

What the law requires

Texas Property Code Section 5.008 applies to the sale of residential real property with not more than one dwelling unit, which covers single-family homes, townhomes and condominium units. The seller must give the buyer a written notice in substantially the form set out in the statute, and must deliver it on or before the effective date of the contract. The notice is completed to the best of the seller's belief and knowledge as of the date it is signed. If the seller does not know the answer to an item, the law says to indicate that fact on the notice, and doing so complies with the section. In other words, the standard is what the seller actually knows; there is no duty to hire an inspector or to investigate.

Two other points come from the statute. Under subsection (c), a seller or agent has no duty to disclose a death on the property by natural causes, suicide or an accident unrelated to the property's condition, or a prior occupant's HIV status. And under subsection (f), if the contract is signed without the notice, the buyer may terminate for any reason within seven days after receiving it. The TREC contract carries this into paragraph 7B: if the buyer has not received the notice, the seller must deliver it within the days stated; if the buyer never receives it, the buyer may terminate at any time before closing with the earnest money refunded; and if the seller delivers it late, the buyer may terminate for any reason within 7 days after receiving it or before closing, whichever comes first.

Which form: TREC 55-1 or TXR 1406

Two versions of the notice are in common use, and both satisfy the statute.

  • TREC Seller's Disclosure Notice, form 55-1. This is the Texas Real Estate Commission's version, effective May 28, 2026, and it replaced the form long known as OP-H. It tracks the statutory text closely. TREC describes it as required of sellers of previously occupied single-family residences.
  • TXR 1406. Texas REALTORS publishes a longer notice for its members. It contains the same statutory items and adds more detail, such as the approximate age of the roof and a wider list of prior repairs, conditions and seller statements. Most Houston listings on the MLS use TXR 1406.

Whichever form you see, the structure is the same: a checklist of items and equipment in the home and whether they work; known defects in the roof, foundation, walls, plumbing, electrical and other components; a list of conditions the seller is or is not aware of, including previous structural or roof repair, termites, water damage not due to a flood event, settling, drainage problems and lead-based paint; items in need of repair; the flooding and flood insurance section; and a final group of disclosures about deed restriction or ordinance violations, homeowners association fees, common areas, lawsuits, health or safety conditions, rainwater systems, groundwater or subsidence districts and prior use for methamphetamine manufacture. The seller also states whether a survey is attached, whether written inspection reports were received in the previous four years, which tax exemptions are in place, and whether insurance proceeds were received for damage that was never repaired.

The flood and flood insurance questions

The flood section was expanded by the Legislature in 2019 after Harvey, and it is the part of the notice Houston buyers should read twice. The seller must say whether they are aware of each of the following:

Question on the notice Why it matters Where a buyer can verify it
Present flood insurance coverage An existing policy can often be assigned to the buyer at closing, keeping its rating history. Ask for the declarations page and the agent's contact.
Previous flooding due to a failure or breach of a reservoir, or a controlled or emergency release of water from a reservoir In Houston this means the Addicks and Barker reservoirs in west Houston, which released water during Harvey. Harris County Flood Control District maps; the seller's dates and photos.
Previous water penetration into a structure due to a natural flood event The core question: has the house itself taken water. Permit history for post-flood repairs, insurance claim history, neighbors, the inspector's moisture readings.
Located wholly or partly in a 100-year floodplain (Special Flood Hazard Area, zones A, V, A99, AE, AO, AH, VE or AR) Lenders require flood insurance here. FEMA Flood Map Service Center; HCFCD's Flood Education Mapping Tool.
Located wholly or partly in a 500-year floodplain (Moderate Flood Hazard Area, zone X shaded) Insurance is optional but strongly advisable; the City of Houston regulates construction here. Same maps.
Located wholly or partly in a floodway, flood pool or reservoir Floodways carry the fastest water; the flood pool is the land above a reservoir's normal level that fills in a major storm. Same maps; the statute defines each term on the form itself.
Has the seller ever filed a claim for flood damage with any insurer, including the National Flood Insurance Program? A claim is hard evidence of past flooding even when a seller remembers it as minor. Ask for the claim history; the buyer's insurer can pull a loss history report.
Has the seller ever received assistance from FEMA or the U.S. Small Business Administration for flood damage? Federal assistance means a documented flood loss. Ask for the paperwork.

The form also carries a footnote reminding buyers that homes in high-risk zones with mortgages from federally regulated or insured lenders must carry flood insurance, and that FEMA encourages owners in high, moderate and low-risk zones to buy it. We point our buyers to the official maps for every home they consider; the notice tells you what the seller knows, the maps tell you what the risk is.

MUD and PID notices are separate documents

Two other notices travel with the disclosure but are not part of it.

Municipal utility district notice. Texas Water Code Section 49.452 requires a seller of property in a MUD or similar water district to give the buyer a written notice before a binding contract is signed, either as a separate document or inside the contract. Section 49.4521 prescribes the wording: the district's current property tax rate per $100 of value (or the projected rate if taxes have not started), the bonds authorized and issued for water, sewer and drainage, roads, parks and other facilities, and any standby fee. A fresh copy is signed by both sides at closing and recorded. If the notice is not given before the contract, the buyer may terminate; if the buyer closes after receiving it at or before closing, the right to terminate and to damages is waived. The statutory damages are either all costs of the purchase plus interest and attorney's fees, or up to $5,000 plus attorney's fees, and suit must be filed within 90 days after the first district tax notice or four years after the sale, whichever is first.

Public improvement district notice. Property Code Section 5.014 requires a seller in a PID created under Local Government Code Chapter 372 or 382 to deliver a notice stating that an assessment has been levied against the property, that it may be paid in full at any time or in annual installments, where to get the amount and schedule, and that nonpayment can lead to penalties, interest, a lien and foreclosure. Section 5.0141 requires the notice before the contract is signed; if it is missing the buyer may terminate, and closing after a late notice waives the remedies. TREC publishes an addendum that carries the notice.

When a seller is exempt

Section 5.008(e) lists the transfers the notice requirement does not apply to:

  • a transfer under a court order or a foreclosure sale;
  • a transfer by a trustee in bankruptcy;
  • a transfer to a mortgagee or deed-of-trust beneficiary by the borrower, or by a lender that acquired the property at a foreclosure sale or by a deed in lieu of foreclosure;
  • a transfer by a fiduciary administering a decedent's estate, guardianship, conservatorship or trust;
  • a transfer from one co-owner to one or more other co-owners;
  • a transfer to a spouse or to a person in the lineal line of consanguinity of a transferor;
  • a transfer between spouses under a divorce decree, legal separation or related property settlement;
  • a transfer to or from a governmental entity;
  • a new residence of not more than one dwelling unit that has never been occupied; and
  • real property where the value of any dwelling is no more than five percent of the value of the property.

The exemption most Houston buyers meet is the estate sale: an executor or trustee who never lived in the house checks paragraph 7B(3) of the contract, "Seller is not required to furnish the notice." Many still complete a notice with "unknown" answers, which is good practice. Being exempt from the form does not permit anyone to misrepresent a known defect; general fraud and deceptive trade practices law still applies, and the MUD and PID notices have their own, narrower exemption lists.

How buyers should read a disclosure notice

  1. Check the date. A notice signed months before you went under contract may predate a storm, a repair or a new roof. Ask for an updated one if anything has changed.
  2. Separate "no" from "unknown." "Unknown" from a long-time owner-occupant deserves a question; "unknown" from an heir or an investor who never lived there is normal and shifts the work to your inspection.
  3. Read every "yes" with the attachments. Sellers must explain each yes. Ask for receipts, engineer's letters, warranty transfers and permits. In Houston, foundation repair warranties and roof invoices are the documents that matter most.
  4. Cross-check the flood section against the maps and a claims history. A seller who bought after the last flood may honestly not know. The maps, a loss history report and the neighbors fill the gap.
  5. Compare it with your inspection report. A defect the inspector finds that the seller marked "no" is a negotiation item during the option period, and sometimes more.
  6. Use the four-year inspection question. If the seller received an inspection report in the last four years (for example from a buyer who terminated), the form asks them to say so; request a copy.
  7. Note the HOA, MUD and exemption lines. They tell you what the carrying costs will look like after the seller's exemptions fall off, and whether a MUD or PID notice should also be in your packet.

If a seller knowingly conceals a defect, Texas law gives buyers remedies for fraud and misrepresentation, but the time to catch a problem is during the option period, when terminating costs only the option fee. A disclosure notice is a starting point for your inspections, not a substitute for them.

Questions buyers and sellers ask about the disclosure notice

Is a seller's disclosure notice required in Texas?

Yes, for the sale of residential property with one dwelling unit, under Texas Property Code Section 5.008. The seller must deliver a written notice in substantially the statutory form on or before the effective date of the contract, completed to the best of the seller's belief and knowledge. The statute exempts certain transfers, including foreclosures, transfers by executors and trustees, transfers between co-owners or relatives, and new homes that have never been occupied.

What is the difference between the TREC seller's disclosure form and TXR 1406?

Both satisfy Property Code Section 5.008. TREC form 55-1, effective May 28, 2026, replaced the long-used OP-H and follows the statutory text closely. TXR 1406 is the Texas REALTORS version, which includes the same statutory items plus more detailed questions, such as the approximate age of the roof and a longer list of prior repairs and conditions. Most Houston MLS listings use TXR 1406.

What flood questions does the Texas seller's disclosure ask?

Whether the seller is aware of present flood insurance coverage, previous flooding from a reservoir failure or release, previous water penetration into a structure from a natural flood event, and whether the property is wholly or partly in a 100-year floodplain, a 500-year floodplain, a floodway, a flood pool or a reservoir. It also asks whether the seller has ever filed a flood damage claim with any insurer including the National Flood Insurance Program, and whether the seller has ever received FEMA or Small Business Administration assistance for flood damage.

What if the seller did not give me the disclosure notice before I signed the contract?

Under Property Code Section 5.008(f) and paragraph 7B of the TREC contract, you may terminate for any reason within 7 days after you receive the notice, or before closing, whichever comes first, and your earnest money is refunded. If the seller never delivers the notice at all, you may terminate at any time before closing. Put the termination in writing and deliver it on time.

Does a seller have to inspect the home or disclose problems they do not know about?

No. The notice is completed to the best of the seller's belief and knowledge as of the date it is signed, and the statute allows the seller to mark an item as unknown. There is no duty to hire an inspector or to investigate. The duty is honesty about what the seller actually knows, and knowingly concealing a defect exposes the seller to fraud and deceptive trade practices claims even when the form was signed.

Who is exempt from giving a seller's disclosure in Texas?

Property Code Section 5.008(e) exempts transfers under a court order or foreclosure, by a bankruptcy trustee, to or by a lender in foreclosure or by deed in lieu, by an executor, guardian, conservator or trustee administering an estate or trust, between co-owners, to a spouse or lineal relative, between spouses in a divorce, to or from a governmental entity, of a new home that has never been occupied, and of land where any dwelling is worth five percent or less of the property. The exempt seller checks the box in paragraph 7B(3) of the TREC contract.

Is the MUD notice part of the seller's disclosure?

No. The municipal utility district notice is a separate document required by Texas Water Code Section 49.452. It must be given before a binding contract is signed and must state the district's tax rate, its authorized and issued bonds and any standby fee. A copy is signed again at closing and recorded. If it is not given before the contract the buyer may terminate, and a buyer who closes after receiving it waives that right. Properties in a public improvement district need a separate PID assessment notice under Property Code Section 5.014.

Selling? Get a free home valuation Buying? Ask us about a home

Call or text (832) 777-3904. We speak English and Spanish.

Related guides

Sources

About this page. Compean Group is a licensed Texas real estate brokerage. This page is general information, not legal advice. The statute, the form your seller signs and your attorney control in any dispute.

Updated October 29, 2026.