New Form for Seller's Disclosures Required as of 1/1/2016

Trey Wilson San Antonio Texas Real Estate Attorney, Trey Wilson Real Estate Lawyer in San Antonio wrote:  

I frequently write and speak about the importance of the proper and accurate completion of Seller's Disclosure Notices.  Such notices are required by Section 5.008 of the Texas Property Code, which requires that the Disclosures be:

• signed by the Seller;
• delivered to a Buyer at or prior to the time that a purchase contract is entered; and 
• accurate as of the date that they are signed.  

Texas courts have held that a Seller has an ongoing obligation to supplement or update the representations contained in the Seller's Disclosure Notice if facts change materially.  

If s Seller affirmatively misrepresents, or fraudulently conceals (fails to disclose a known property condition when a duty to disclose exists), that Seller can be liable for real estate fraud and possibly a violation of the Texas Deceptive Trade Practices Act.  The Texas Real Estate License Act even provides that a real estate salesperson and her broker can even be held liable if they are aware of a Seller's misrepresentation of a property's condition.

To assist Sellers in complying with the legal obligation to disclose a property's condition as required by Section 5.008, the Texas Real Estate Commission has promulgated a standardized form that is used in most real estate transactions. This form -- TREC form No. OP-H -- was revised in August 2015.  Here is a link to the newly revised form.

Texas real estate license holders are generally required to use forms promulgated by TREC when negotiating contacts for the sale of real property.  These forms are drafted and recommended for adoption by the Texas Real Estate Broker-Lawyer Committee, an advisory body consisting of six attorneys appointed by the President of the State Bar of Texas, six brokers appointed by TREC, and one public member appointed by the governor.

Beginning January 1, 2016, all real estate transactions involving TREC licensed brokers will require use of the newly revised Seller's Disclosure Form.