Texas Seller's Disclosure Notice (TREC Form OP-H)
Overview
The Texas Seller's Disclosure Notice, officially known as TREC Form OP-H, is a mandatory disclosure document required under Texas Property Code Section 5.0061. This form allows sellers to disclose known defects and material facts about the property to buyers before they are contractually bound.
Legal Authority and Requirements
Texas Real Estate Commission (TREC) mandates that sellers provide written notice of any known defects in the property. This includes both structural and non-structural conditions that could affect the property's value or desirability.
Applicability
The disclosure requirement applies to:
- Residential properties (1-4 units)
- Owner-occupied and investment properties
- Most residential real estate transactions in Texas
Exemptions
Certain transactions are exempt from the disclosure requirement:
- Sales between relatives
- New construction (when builder is the seller)
- Foreclosure sales
- Transfers by court order
- Sales where buyer is already the property owner
Required Disclosures
Property Condition Information
The form requires sellers to indicate the condition of:
Structural and Foundation
- Foundation and slab condition
- Walls, floors, and roof condition
- Ceiling and attic condition
Systems and Utilities
- Electrical system condition and amperage
- Plumbing and sewage system
- Water supply and treatment systems
- Heating and air conditioning units
- Hot water system
Interior Components
- Walls and interior surfaces
- Carpet and flooring
- Windows and doors
- Insulation and ventilation
Environmental and Safety Issues
- Lead-based paint (for pre-1978 homes)
- Mold or water intrusion
- Radon gas
- Asbestos materials
- Underground storage tanks
Additional Disclosures
Beyond property condition, sellers must disclose:
- Previous insurance claims or denials
- Homeowners Association information
- Architectural control restrictions
- Subdivision restrictions
- Easements and encroachments
- Code violations
- Environmental conditions
- Property location relative to flood zones
- Occupancy restrictions
Timeline and Deadlines
Critical Dates
- Before binding contract: Disclosure must be provided before buyer is legally bound by the purchase agreement
- Buyer's inspection period: Typically 7-10 days from effective date (per contract terms)
- Remedy period: If defects discovered, buyer has opportunity to request repairs or terminate
Delivery Requirements
The form must be delivered:
- In person (with receipt)
- By email with read receipt
- By hand delivery with acknowledgment
- By mail with certified or return receipt requested
Penalties and Liability
Consequences of Non-Disclosure
Failure to provide required disclosure or providing false information can result in:
- Buyer's right to terminate contract
- Civil liability for damages
- Actual damages plus additional penalties
- Attorney fees and court costs
- Potential fraud claims
Statute of Limitations
Buyers typically have:
- 2 years from delivery of the disclosure (or failure to deliver) to sue for non-disclosure
- 4 years for certain fraud claims
Form Completion Guide
Step-by-Step Instructions
- Identify the Property: Enter complete property address and legal description
- Review Property Condition: Carefully assess each item listed
- Mark Defects: Indicate "Yes" or "No" for each condition item
- Provide Details: Describe any known defects in the space provided
- Sign and Date: All property owners must sign the disclosure
- Deliver to Buyer: Provide before buyer becomes contractually obligated
Tips for Accurate Completion
- Be thorough and honest in assessments
- Don't assume repairs have fixed prior problems
- Disclose both major and minor known defects
- Include age of major systems and appliances
- Document date disclosure was provided to buyer
- Keep copies for your records
Buyer's Response Options
Once the buyer receives the disclosure, they may:
- Accept the property as-is by signing acknowledgment
- Request repairs using repair request form
- Request buyer's walk-through and re-inspection
- Terminate the contract if dissatisfied with disclosures
- Negotiate earnest money credit for repairs
Property Condition Addendum
If a buyer requests repairs or modifications, use the Addendum for Property Subject to Mandatory Membership in a Property Owners' Association or related forms to address remedies.
Frequently Asked Questions
Q: What if I don't know about a defect?
A: You are only required to disclose defects you actually know about. However, you must disclose anything you suspect or should know about based on your ownership and use of the property.
Q: Can a seller and buyer agree to skip the disclosure?
A: No. The disclosure requirement is mandated by Texas law and cannot be waived by agreement.
Q: What happens if I discover a defect after providing the disclosure?
A: You should provide an amended disclosure immediately with the new information.
Q: How long must I keep the disclosure form?
A: Keep copies for at least 2 years (the statute of limitations for non-disclosure claims).
Q: Do I need a home inspection before disclosure?
A: No, but some sellers conduct inspections to identify issues and ensure accurate disclosure.
Q: Are HOA documents part of the disclosure?
A: Yes, HOA disclosures are a required component of the overall seller's disclosure package.
Common Defects to Disclose
- Roof leaks or age beyond life expectancy
- Plumbing issues or burst pipes
- Foundation cracks or settling
- Electrical problems or code violations
- Mold or water damage
- HVAC system failures
- Previous flood damage
- Pest infestations
- Structural damage
- Appliance defects
Related Forms and Documents
- Property Owners' Association Disclosure Addendum
- Addendum for Property Subject to HOA
- Lead-Based Paint Disclosure (federal, required for pre-1978 homes)
- Property Condition Addendum
- Notice of Obligation to Pay Improvement District Assessment
Recommended Actions
- Conduct a pre-sale inspection to identify issues
- Gather all maintenance records to document condition
- Review previous claims or repairs with insurance company
- Consult with a real estate attorney about specific concerns
- Be honest and thorough in completing the form
- Document delivery to the buyer with receipts
- Keep detailed records of all communications
Resources
- Texas Real Estate Commission (TREC): Official regulatory body
- Local Real Estate Boards: Provide forms and guidance
- TREC-Licensed Inspectors: Can assess property condition
- Real Estate Attorneys: Advise on specific disclosures
- Texas Property Code Section 5.0061: Official disclosure statute
The Texas Seller's Disclosure Notice is essential for transparent transactions and protecting both parties. Proper completion and timely delivery ensure compliance with state law and reduce liability risks.