When buying property, you have the right to know of any defects before finalizing the transaction. In that same vein, when selling property, you have an obligation to disclose any issues prior to closing. The specific disclosure requirements—and the penalties for failing to abide by them—vary by state. If you’re planning on buying or selling real estate in Texas, here’s what you should know. 

What Must the Disclosure Report Include?

Sellers must complete the Texas Real Estate Commission’s disclosure form and give it to the buyer before they sign the purchase contract. While the seller does not have to conduct a comprehensive inspection, he or she must explain all known defects in detail on the form. This form asks about virtually every aspect of the property, from its appliances and HVAC system to its foundation and lighting fixtures. In other words, it gives the seller every opportunity to disclose all existing problems. 

What Might Happen If the Seller Fails to Be Upfront?

If the seller fails to give the buyer a completed real estate disclosure form before they sign the purchase contract, the buyer has seven days from when he or she actually receives the form to terminate the agreement for any reason. And if the seller never submits the form but the transaction proceeds, the buyer could eventually have grounds for a civil suit, depending on the circumstances. For example, if the property has a history of termite infestations but the seller kept the pests away for long enough to complete the sale, the buyer could later sue for fraud or breach of contract. 

If you’re planning on buying or selling real estate in Texas, turn to The Law Offices of Charley Johnson for help navigating every stage of the transaction. Located in Centerville, the firm has been representing individuals and businesses throughout Leon County for more than 35 years. To request an initial consultation, call (903) 536-2185 or fill out the form on their website.