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.