Seller's Disclosure Notice

The Seller's Disclosure Notice of Property Condition (SDN) is required by sellers of previously occupied single family residences and is to be used in conjunction with a contract for the sale of real property. It contains information required to be disclosed by Section 5.008 of the Texas Property Code regarding material facts and the physical condition of the property. 

There are two readily available versions of the disclosure and the SELLER can choose whether they want to use the minimum TREC form or the more extensive Texas Realtors version of the form.

NOTE: If you do not provide the SDN before the execution of the contract, the buyer will have an automatic FREE SEVEN-DAY termination period to get out of the contract upon receipt all the way up to the day of closing! Don't put yourself at risk! Provide the notice before executing the contract and ensure that 7B on the contract is checked "Buyer has received the notice"

This is why you want to have an EXPERIENCED broker working for you to make sure you get the ultimate protection. This is only one of nearly 40 ways that a buyer can get out of the Texas Purchase Contract!!!!!

There are only 11 exceptions from the requirement to provide this disclosure and we will discuss them below.  

SELLER'S DISCLOSURE NOTICE EXEMPTIONS: Texas Property Code Sec. 5.008. (e)  This section does not apply to a transfer:

(1)  pursuant to a court order or foreclosure sale;

(2)  by a trustee in bankruptcy;

(3)  to a mortgagee by a mortgagor or successor in interest, or to a beneficiary of a deed of trust by a trustor or successor in interest;

(4)  by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a deed of trust or a sale pursuant to a court ordered foreclosure or has acquired the real property by a deed in lieu of foreclosure;

(5)  by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust;

(6)  from one co-owner to one or more other co-owners;

(7)  made to a spouse or to a person or persons in the lineal line of consanguinity of one or more of the transferors;

(8)  between spouses resulting from a decree of dissolution of marriage or a decree of legal separation or from a property settlement agreement incidental to such a decree;

(9)  to or from any governmental entity;

(10)  of a new residence of not more than one dwelling unit which has not previously been occupied for residential purposes; or

(11)  of real property where the value of any dwelling does not exceed five percent of the value of the property.