Texas Real Estate Purchase Agreement Template

Buyer Beware: Texas places the primary burden on the buyer to conduct due diligence. Sellers are generally not required to conduct independent investigations or hire professionals to find unknown defects. Sellers are also not required to disclose “non-material” facts, such as whether a death occurred on the property.

Exceptions:

• Direct Inquiry Responses: If a buyer makes a specific inquiry about an issue, the seller must answer truthfully; silence in this context may constitute misrepresentation (Barrow-Shaver Res. Co. v. Carrizo Oil & Gas, Inc., 2019).
• Fraudulent Concealment: A seller loses protection if they take affirmative steps to hide a defect, such as painting over a recurring leak to intentionally deceive the buyer (BP Am. Prod. Co. v. Marshall, 2011).
• Latent Material Defects: Sellers must disclose “latent” (hidden) defects they are aware of that a buyer could not reasonably find during a standard visual inspection (Myre v. Meletio, 2010)
• New Construction Warranties: Builders of new homes are held to an implied warranty of habitability and good workmanship that protects the buyer against structural flaws (Centex Homes v. Buecher, 2002).
• Real Estate Agent Duties: Licensed agents have a separate statutory burden to disclose all known “adverse facts” or “latent structural defects” regardless of the seller’s actions (§ 1101.652(b)).
• Statutory Disclosure Mandate: Sellers of single-family residences must provide a written Seller’s Disclosure Notice detailing the home’s condition and history of major repairs (§ 5.008).

1.) Coastal Area Property Addendum (TREC 33-2): If a property adjoins and shares a common boundary with tidally influenced submerged lands, the seller must provide this notice that the boundary is subject to change (§ 33.135).

2.) Encumbered by Lien: If a property is sold while subject to a recorded lien that will not be released at closing, the seller must provide the buyer with a written notice of the debt (§ 5.016).

3.) Groundwater and Surface Water Rights (TREC 61-0): This mandatory document provides prospective buyers with information regarding the existence of water wells and associated water rights (22 TAC §537.68).

4.) Lead-Based Paint Disclosure: If a residential dwelling was built prior to 1978, the seller is required by federal law to disclose any known lead hazards and provide an educational pamphlet (42 U.S. Code § 4852d).

• In Texas, all sellers must also complete this state-prepared Lead-Based Paint Disclosure (TREC OP-L) form.

5.) Potential Annexation Notice: If a property is located outside a municipality’s corporate limits, the seller must provide a notice warning that the land may be annexed and subject to municipal taxes in the future (§ 5.011).

6.) Propane Gas System Service Area Addendum (TREC 47-0): If a property is located within a designated propane service area, the seller must inform the buyer of potential unique service costs (§ 141.010).

7.) Property Located Seaward of the Gulf Intracoastal Waterway Addendum (TREC 34-4): If a property is situated seaward of the Gulf Intracoastal Waterway, the seller must disclose that the state may require the removal of structures (§ 61.025).

8.) Property Owners Association Addendum (TREC 36-10): If membership in a homeowners association is mandatory, the seller must provide this form notifying the buyer of the obligation to pay assessments (§ 5.012).

9.) Public Improvement District (PID) Addendum (TREC-53-0): If a property is located within a Public Improvement District, the seller is obligated to provide this notice regarding infrastructure assessments (§ 5.014). 

10.) Seller’s Disclosure Notice (TREC-55-1): Mandatory for all previously occupied single-family residences, this form requires the seller to disclose their knowledge of the property’s material defects (§ 5.008).

11.) Special Taxing or Assessment District Notice (TREC 59-0): If a property is in a Municipal Utility District (MUD) or similar district, the seller must provide data on tax rates and debt (§ 49.452).

12.) Water Level Fluctuation Notice: If a property adjoins a reservoir or lake with significant storage capacity, the seller must notify the buyer that water levels may change (§ 5.019).

13.) Water or Sewer Service Area Notice: If a property is in a utility’s certificated service area, the seller must warn the buyer that special fees may apply to establish service (§ 13.257).