Texas Sellers Disclosure Notice

3 Replies

Currently working with a buyers agent to purchase a property listed by another agent within the same brokerage. The listing agent and her husband are in the process of a full renovation (4 weeks from completion). I asked my agent to produce the MUD, SDN and all those other documents to help me in my decision. He says that the listing agent does not need to produce a sellers disclosure notice as they have not owner-occupied the home. Is this a true statement? 

It's a common myth that sellers who haven't lived in a home aren't required to provide a seller's disclosure. The only people exempt are new home builders, trustees of estates, and lenders that have foreclosed on a home.

At the top of the page, there is a box to check whether or not the seller has ever lived in the home. A non-occupant would check the "no" box and then go down the disclosure and check the "don't know" box, assuming he actually does not know.

Even if the seller has never lived in the house, he has to know if he's ever filed an insurance claim, had the roof repaired, or AC or anything else like that. The only person who could legitimately claim that he has no knowledge is someone who literally bought the property and then immediately turned around and sold it to someone else.

For seven days after the seller provides the disclosure, you have the right to cancel the contract and get your earnest money back. If the seller doesn't provide the disclosure, then you can cancel the contract at any time before closing and get your earnest money back. 

Thank you for getting that off my mind Fred. I will go forward with the transaction using this knowledge. 

@Joshua Standing Cloud     I just re-read your post and in a case like a total reno they can't claim they don't know anything about the property. They're putting in a lot of new stuff, and you're going to want all the warranty info on that.

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