Members mistakenly believe that property investors are exempt from the requirement to provide a seller’s disclosure because the investors never lived in a property. That is not true. There is no exception to the seller’s disclosure requirement in Property Code Section 5.008 for investors who never lived in the property. They are required to complete the seller’s disclosure to the best of their knowledge. However, if sellers legitimately do not know answers to questions on the disclosure, they can mark those questions unknown and still fulfill the obligations under the Texas Property Code.
— Traci Jackson, staff attorney
This has been stated so many times. I wish you would elaborate what are the consequences if the seller refuses to provide the SDN.
See Texas Property Code 5.008(f), the purchaser may terminate the contract for any reason within 7 days after receiving it. Thus, the main remedy is terminating the contract. If the contract closes and there is an “as-is” clause, it gets significantly more difficult to do something. Usually takes an act of fraud, but contact a property attorney (like myself) if you or your client ever have questions. Jacob Hyde (SBN: 24074464).
See! Now that’s the kind of great answer that’s always missing in these discussions. Appreciate you taking the time to join in.
How about those who do it and mark EVERYTHING No or Unknown?
those that don’t fill out the SDN, They are PLAYING WITH FIRE.
When I see these flips and the SD is vague or incomplete then I advise my Clients to beware of the property. You must assume cover-ups. Extra assessments are a must. I also tell them that getting any laws enforced in Texas is very difficult.
Does the investor disclosure pertain only when the investor is selling the property or also when the investor will lease the property?
Traci, can we assume from this that family members selling a deceased loved one’s home are not considered investors and not impacted by this section of the code?
SD is very importance for the Buyer- Maybe you need to require HAR board/Trec to take off Term 7.B. (3) in Form TREC No 20-16 ( 1-4 Family resident contract), make sure Seller’s broker have to all way supply the SD.
Sellers are very well aware of the condition of the house. They get charged for all repairs done to the property.
They can also ask their managment company. I am sick and tired of sellers and managemt companies that trying to take advantage of the sellers market to hurt buyers in their biggest investment.
The law has to change. I have sellers asking for $ 5000.00 for option time then buyer back out and lose because of the inspection that seller said UNKNOWN?????????? PLEASE
This needs to change it is the stupidest thing I’ve ever heard!!