The 86th Texas Legislature passed two bills that add questions to the Seller’s Disclosure Notice (TXR 1406) regarding flooding. The revised disclosure notice is now available and will be mandatory starting Sept. 1, 2019, and required for contracts executed on or after Sept. 1, 2019.
New questions for a seller to answer:
- Water damage not due to flooding
- Present flood coverage
- Previous flooding due to a failure/breach of a reservoir
- Previous water penetration into a structure on the property due to a natural flood event.
- Is property wholly or partly in a 100-year floodplain, 500-year floodplain, floodway, flood pool, or reservoir? (definitions provided)
- Has seller ever filed a claim for flood damage?
- Has seller ever received assistance from FEMA or SBA for flood damage?
Texas REALTORS® supported the bills that resulted in these changes. This pro-consumer law is the most comprehensive update to the seller’s disclosure since the statement’s creation in 1993. The updates add significant information related to flooding and provide buyers with in-depth information about past flooding on a property and its structures.
While the disclosures are required and can provide a consumer with important information about the property, a buyer should still do their own due diligence related to the subject property. As the REALTOR® for the seller, you want to educate your client on their responsibility to provide the most current version of the Seller’s Disclosure Notice. As the REALTOR® representing a buyer, you should help your client understand the need for them to conduct their own due diligence. As providing the Seller’s Disclosure Notice can help your seller avoid future litigation, encouraging your clients to disclose and conduct their own due diligence can also help you avoid future Ethics or TREC complaints, as well as, potential lawsuits.
Learn more on the Texas REALTORS® blog.