Exceptions to Residential Seller Disclosures

Exceptions to Residential Seller Disclosures

Exceptions to Seller’s Disclosures in Residential Sales in Texas!

Due to recent weather events, water penetration from storms, flooding, and burst pipes has become a focal point when purchasing a home. In Texas, a signed seller’s disclosure notice is required in most residential sales pursuant to Section 5.008 of the Property Code:
5.008(a) A seller of residential real property comprising not more than one dwelling unit located in this state shall give to the purchaser of the property a written notice as prescribed by this section or a written notice substantially similar to the notice prescribed by this section which contains, at a minimum, all of the items in the notice prescribed by this section.
However, there are exceptions where disclosure is not required. For example, Property Code Section 5.008(e) states that a Seller’s Disclosure Notice is not required in the case of a transfer:
(1) pursuant to a court order or foreclosure sale; 
(2) by a trustee in bankruptcy; 
(3) to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest; 
(4) by a lienholder who has either purchased at a foreclosure sale or a sale pursuant to a court order or accepted a deed in lieu of foreclosure; 
(5) by a fiduciary in the course of an administration of a decedent’s estate, guardianship, conservatorship, or trust; 
(6) from one co-owner to one or more other co-owners; 
(7) made to a spouse or to a person or persons in the lineal line of consanguinity of one or more of the transferors; 
(8) between spouses incident to divorce, legal separation or a property settlement agreement; 
(9) to or from a governmental entity; 
(10) a new residence of not more than one dwelling unit that has not been occupied for residential purposes; 
(11) of real property where the value of any dwelling does not exceed 5% of the value of the property.

(214) 310-1419

Schedule a Consultation

This field is for validation purposes and should be left unchanged.