No. The fact that a property is located within a Groundwater Conservation District (GCD) does not, by itself, require the seller to provide the Seller’s Disclosure About Groundwater and Surface Water Rights (TXR 1425, TREC 61-0).

The seller must provide the Seller’s Disclosure About Groundwater and Surface Water Rights (TXR 1425, TREC 61-0) unless all of the following are true:

• The seller is not aware of a water well on the property, in use or not in use.
• The seller is not aware of a pond, lake, or water tank on the property.
• The seller is not aware of any certificate of adjudication, certified filing, or permit for surface water rights associated with the property administered by the Texas Commission on Environmental Quality.
• The seller is not aware that any groundwater rights to the property have been severed, sold, or leased in whole or in part.
• The property receives water only from a municipality, municipal utility district or other special district, water supply corporation, or private water supply company, and the seller should indicate the source of water in the blank provided in the contract.

Whether the property is located within a GCD is one of the questions on the disclosure, but a property's location within a GCD alone does not automatically trigger the disclosure requirement.

Because determining whether groundwater rights are owned or being conveyed can involve questions of title, REALTORS® should encourage sellers who are uncertain to consult with their attorney or title company.

Yes. The contract states in Paragraph 7 that the seller must deliver the Seller’s Disclosure about Groundwater and Surface Water Rights (TXR 1425, TREC 61-0) to the buyer unless all of the conditions in 3(a)-(e) are true. Water wells, including those not in use, are addressed in subparagraph 3(a) and if the seller is aware of one, even if it has been abandoned, plugged, or capped, the seller must provide the new water disclosure form.

The seller would answer “no” to 3A and “yes” to 3B. Question 3A asks about “Surface Water Rights,” which according to the definition only includes a permit, certified filing, or certificate of adjudication. Question 3B asks about ponds, lakes, or water tanks on the Property. Question 3B should be answered independently of Question 3A. Therefore, the seller would answer “yes” to 3B if there is a stock tank on the property. Be aware that the form does not define the terms “pond”, “lake”, or “water tank,” so the seller should disclose anything that could reasonably be considered a pond, lake, or water tank, even if they are currently dry or no longer in use. If the Seller is uncertain whether a particular feature falls within one of those categories, the prudent course is to disclose the feature or consult a Texas real estate attorney. The broker should not attempt to define undefined terms in the form or determine whether a particular feature is legally required to be disclosed.

To answer this question, the seller must refer to the definition of “Surface Water Right” in Section 1D of the form, which says that a “Surface Water Right” means “a permit, certified filing, or certificate of adjudication administered by the Texas Commission on Environmental Quality (TCEQ) that authorizes the diversion, impoundment, or use of Surface Water.” It also clarifies that not all “diversions, impoundments, or uses of Surface Water require a Surface Water Right.” Therefore, if the seller currently has such a permit, certified filing, or certificate of adjudication from the TCEQ giving them a “Surface Water Right,” then the seller would answer “yes” to 3A and provide the additional information relating to the “Surface Water Right” requested in 3A(1) and 3A(2). However, if the seller does not currently have such a permit, certified filing, or certificate of adjudication administered by the TCEQ giving them a “Surface Water Right,” the seller would answer “no” to 3A.

TREC added language to contract forms to provide prospective buyers with relevant information on groundwater and surface water rights that are associated with a property. Accordingly, Paragraph 7 in most residential and farm and ranch TREC contracts has been updated to include a new paragraph that states that the seller must provide the Seller’s Disclosure About Groundwater and Surface Water Rights (TXR 1425, TREC 61-0) unless all of the following are true:

• The seller is not aware of a water well on the property, in use or not in use.
• The seller is not aware of a pond, lake, or water tank on the property.
• The seller is not aware of any certificate of adjudication, certified filing, or permit for surface water rights associated with the property administered by the Texas Commission on Environmental Quality.
• The seller is not aware that any groundwater rights to the property have been severed, sold, or leased in whole or in part.
• The property receives water only from a municipality, municipal utility district or other special district, water supply corporation, or private water supply company, and the seller should indicate the source of water in the blank provided in the contract.

Note that the notice is not required for the Residential Condominium Contract (Resale) (TXR 1605, TREC 30-18) or either of the Texas REALTORS® New Residential Condominium Contract (Incomplete and Complete) (TXR 1608 & 1609).