The Texas Seller's Disclosure Notice: What Mansfield Sellers Must Know
What Must You Disclose When Selling a House in Texas?
Texas law requires most home sellers to complete a Seller's Disclosure Notice covering known structural, mechanical, water and flood, and safety-equipment issues, delivered on or before the buyer signs the contract. You only have to disclose what you personally know — you're not required to hire an inspector to go looking for problems. But if you knowingly leave something off, you can face rescission of the sale, actual and consequential damages, and Deceptive Trade Practices Act claims worth up to three times the damages, sometimes years after closing. A handful of exemptions exist — new construction, foreclosures, family transfers, probate sales — but even exempt sellers can still be liable for fraud if they actively hide a known defect.
By The Chad Smith Team | July 14, 2026
Seller disclosures work best when known property details are documented clearly before the home goes under contract.
Every Mansfield seller fills out the disclosure form, and every seller has the same nagging question: how much do I actually have to say? Here's what the form covers, what happens if something gets missed, and what to do if you learn something new after you've already signed it.
What You're Actually Required to Disclose
The Texas Seller's Disclosure Notice asks you to report known conditions across several categories:
Texas sellers should focus on honestly disclosing known issues with structure, systems, water history, flood history, and safety equipment.
Structural components — foundation, roof, walls, floors, and ceilings.
Mechanical systems — HVAC, plumbing, electrical, and the water heater.
Water and moisture issues — known water intrusion, past flooding, drainage problems, mold, or moisture damage.
Flood-specific disclosures — whether the property sits in a FEMA 100-year or 500-year floodplain, whether it's flooded in the past five years, whether it's in a reservoir flood pool, and whether you've ever received flood insurance proceeds on the property.
Safety equipment — smoke detectors, hearing-impaired smoke detectors, carbon monoxide detectors, and emergency escape ladders.
Here's the part that gives sellers the most relief once they understand it: you only have to disclose what you actually know. If you have no reason to think your home has a specific problem, you're not obligated to hire a specialist to check before you sign the form. The obligation is about honesty with your own knowledge, not about becoming a forensic investigator of your own house.
What Happens If You Don't Disclose Something You Knew About
This is where the stakes get real. If you knowingly leave a material defect off the disclosure, a buyer who discovers it later can come after you well after your closing date is behind you.
Known condition issues should be handled directly, because inspections can reveal defects that buyers may later connect back to the disclosure form.
The potential consequences include:
Rescission of the sale — in some cases, the buyer can unwind the transaction entirely.
Actual damages — typically the cost to repair the undisclosed defect, plus any consequential damages that resulted from it.
Deceptive Trade Practices Act (DTPA) claims — for a knowing violation, Texas law allows buyers to recover up to three times their actual damages, plus attorney's fees.
None of this requires the buyer to catch the problem right away. Foundation issues, past flooding, or a leak that was patched rather than properly repaired can surface months or years later, and the disclosure you signed at closing is still the document a court will look at.
Who's Exempt From Filing the Form — and Why That's Not a Full Shield
Certain transactions are exempt from the Seller's Disclosure Notice requirement, including:
New construction that's never been occupied
Foreclosure sales
Transfers to a spouse or to children and grandchildren
Transfers resulting from a divorce decree or legal separation
Sales to or from a government entity
Sales by executors, administrators, guardians, or trustees acting in that capacity — relevant if you're selling a home through probate
If your sale falls into one of these categories, it's worth confirming with your title company or an attorney that it genuinely qualifies. And even then, exemption from the written form doesn't erase your underlying duty not to deceive a buyer. If an exempt seller actively hides a known problem or makes a false statement about the property's condition, they can still face fraud or DTPA liability under Texas common law. The form is a compliance requirement, but honesty about known defects is a separate, broader legal standard that applies either way.
What If You Find Out Something New After You've Already Signed?
The disclosure isn't a one-time formality — it needs updating as new information comes in. The most common trigger is the buyer's own inspection: if a buyer shares their inspection report while negotiating repairs and later walks away from the deal, you're now considered aware of everything in that report. You'll need to reflect it in an amended disclosure for the next buyer.
If new information comes up after the original disclosure, sellers should amend the form so the buyer has current information.
The same goes for anything that happens to the property while it's listed — a water heater that starts leaking, a foundation repair, storm damage, or any other condition change. The process is straightforward: complete an updated disclosure form reflecting the accurate, current information, and have both parties sign it to validate the correction.
What We Help Sellers With
We can't write your disclosure for you or give you legal advice on a specific defect — that's between you, the form, and your attorney if something is genuinely unclear. What we do is walk Mansfield sellers through the categories most people forget to think about, help you document repairs and maintenance history so the form is accurate and complete, and flag anything that might need an amendment before it becomes a problem down the line.
If you're getting ready to list and want a second set of eyes on what needs to be included, we're happy to walk through it with you.
Frequently Asked Questions
What must sellers disclose when selling a house in Texas?
Sellers must disclose known issues with structural components, mechanical systems, water intrusion or flooding history, and required safety equipment, using the Texas Seller's Disclosure Notice. You only have to report what you personally know, not conditions you'd need an inspection to discover.
Can a buyer sue a seller for not disclosing a defect in Texas?
Yes. A buyer who discovers a known defect that wasn't disclosed can pursue rescission of the sale, actual and consequential damages, and in cases of a knowing violation, Deceptive Trade Practices Act claims worth up to three times actual damages plus attorney's fees.
Who is exempt from the Texas Seller's Disclosure Notice?
Exemptions include new construction that's never been occupied, foreclosure sales, transfers to a spouse or direct descendants, divorce-related transfers, sales to or from government entities, and sales by executors or other fiduciaries acting in that role, such as in a probate sale.
Do I have to hire an inspector before filling out the disclosure form?
No. You're only required to disclose defects and conditions you personally know about. If you have no reason to suspect a problem, you don't need to commission an inspection just to complete the form.
What if I find a new problem after I've already given the buyer my disclosure?
You need to amend the disclosure to reflect the new information, with both parties signing the updated version. This commonly happens after a buyer shares an inspection report, or if something changes with the property — like a leak or a repair — while it's on the market.
About The Chad Smith Team
The Chad Smith Team at Realty of America is one of the top-producing real estate teams in the Dallas-Fort Worth Metroplex, with more than 22 years of experience, 2,915 homes sold, and recognition by RealTrends among the top 1% of real estate professionals nationwide. The team helps first-time buyers, sellers, relocation clients, and new construction buyers throughout Arlington, Mansfield, Fort Worth, Midlothian, Waxahachie, and surrounding DFW communities. Through this blog, the Chad Smith Team shares expert market insights and practical advice to help North Texas buyers and sellers make informed real estate decisions.
