DFW Real Estate

DFW Real Estate Articles: 2008

Seller's Disclosure Notice
© by Mike Stevenson

I have a real appreciation for honesty. When reading product information or talking with people, I want to believe that I'm getting the real scoop so I can make a good, informed decision. Having lived a few years, I know that human nature can sometimes sweep a few details under the rug. When it comes to selling property, it's easy to forget "little problems" when it's time to sell that property to someone else. Years ago, such transactions were conducted under the premise: "Let the Buyer Beware". Today, we have a new premise...
"I - Will - Sue -You!"

The State of Texas has wisely stepped-in to help us avoid these problems and to instill greater confidence into our business dealings. In real estate transactions, the Texas Property Code requires a seller of residential property... to deliver a Seller's Disclosure Notice to a purchaser on or before the effective date of a contract for the sale of the property. If the notice isn't received within that time frame, the buyer may terminate the contract at any time prior to closing.

State law requires the owner to disclose both known structural defects, and any latent (hidden) structural defects. Owners must complete the notice to the best of their knowledge. The form provided by the Texas Association of REALTORS®, complies with the law and contains additional disclosures which exceed the minimum requirements. Just to be clear, a latent defect is... a defect known to the seller but not to the buyer and is not discoverable by ordinary inspection. An example of such might be, a broken water pipe that causes water too soak an area in the house after the sprinkler has been used for more than 30 minutes. There is NO requirement to disclose that any person has died in the house by natural causes or even by suicide. An accidental death, which was not related to the condition of the property, is also not a required disclosure.

Property owners should fill out the disclosure notice carefully and honestly. If there's a question about anything listed on the form, the seller should make a careful inspection and consider having repairs made by a professional. The disclosure isn't meant to be a guarantee of perfection, but a statement of fact that a perspective buyer should be able to rely upon. All of us want to be treated fairly in our business dealings, and the Seller's Disclosure Notice is a good faith document that helps all of us make buying and selling a home easier and safer.

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